Russian general jailed for fraud

Oleynik authorised the transfer of $450 million abroad

By Stephen Dalziel BBC Russian Affairs analyst

A Russian military court has sentenced the former head of the military budget and financing department to three years in prison for failing to prevent a serious case of fraud.

Russians know that corruption has become a part of everyday life in many spheres of society

General Georgy Oleynik was found guilty of abuse of office, by authorising the transfer of $450m to Ukraine as payment for materials, which were never delivered.

General Oleynik was accused of caring more about his own career than the good of the defence ministry.

This is one of the biggest cases of fraud to have passed through the Russian courts.

Widespread corruption

General Oleynik was supposed to check the legitimacy of all transfers of large sums of money from the defence ministry.

The agreement with the Ukrainian Ministry of Defence and the United Energy Systems of Ukraine involved the total transfer of $450m.

The court found that there was a gross breach of the regulations for the transfer of such sums.

General Oleynik did not seek the permission of the Central Bank to transfer the money abroad, and the bulk of the money was moved before the contract for the materials had even been signed.

Russians know that corruption has become a part of everyday life in many spheres of society.

In the military, where salaries, when paid, are tiny, it is spread from the sale of small numbers of weapons and other equipment by junior officers, to a recent scandal over the illegal sale of aircraft carriers to India.

In this case, the state prosecutor said that by not following the correct procedures, General Oleynik had cost the state $327m.