Russian general charged over lost millions

The army's money man: General Oleinik faces 10 years in jail

A Russian general responsible for finance at the Ministry of Defence has been charged with abusing his position and placed under house arrest, according to the Russian military prosecutor's office.

General Georgy Oleinik, faces up to 10 years in a labour camp if convicted over the misappropriation of $450m of the military budget.

Defence Minister Igor Sergeyev wants to sack the general, according to reports

His office, home and country house have been searched in connection with the investigation.

General Oleinik has been in charge at the Defence Ministry's Main Military and Finance Department since October 1996.

The job is considered crucial at a time of tight funding.

Four investigated

In August, another military investigator confirmed that four generals, including General Oleinik, were being investigated over the disappearance of money from the severely cut armed forces budget.

Military Investigator Andrei Lutchenko said the investigation into General Oleinik implicates the general his chief accountant, Yevgeny Datsko, and two department chiefs, Leonid Gerasimenko and Anatoly Vorobyov.

The Interfax news agency says that Defence Minister Igor Sergeyev had already been asked for General Oleinik dismissal.

Corruption is a major problem in the Russian military because salaries are low and there is a large stockpile of weapons.

The armed forces have been chronically under funded in the post-Soviet period, although President Vladimir Putin is diverting more money to them in next year's budget.