Subscribe free to our newsletters via your
. 24/7 Space News .

IT Company Probed Over Russian Sat-Nav Embezzlement
by Staff Writers
Moscow (RIA Novosti) Jun 21, 2013

File image.

Former executives of M2M Telematics, a subsidiary of the Russian Systema conglomerate, are under investigation over alleged embezzlement of nearly 400 million rubles ($12.3 million) from the Glonass satellite navigation system program, Kommersant daily reported on Thursday.

The Global Navigation Satellite System (Glonass), officially launched in 1993, is the Russian counterpart to the US-operated GPS.

A criminal case has been opened on charges of "large-scale fraud committed by a group of individuals on the basis of previous collusion," which carries a penalty of up to ten years in prison. No charges have yet been brought against specific M2M Telematics executives, the paper said.

"According to investigators, in 2012, M2M Telematics executives embezzled government funds allocated for a series of IT projects which were part of the GLONASS program," Kommersant reported.

"Investigators believe that the IT company's management signed fake service agreements with eight subcontractors which appeared to have no workers on their payroll, no property, equipment or other resources. These companies only existed on paper. M2M transferred 380.580 million rubles to these subcontractors for work that was never carried out. The money was converted to cash and embezzled, investigators claim," the paper added.

The company rejects the accusations. "This case has been fabricated," Igor Grushelevsky, who was M2M's general director in 2012, told Kommersant. "There is no evidence. It is based on motives other than justice."

Systema told Kommersant it is very concerned over the allegations of financial irregularities in a daughter company, and is assisting the investigation.

M2M telematics is a leading Russian holding company in vehicle telematics and satellite navigation based on Glonass/GPS technologies. Its key projects include navigation and information support for the 2014 Sochi Olympics and the development of intellectual transport systems in Russian regions.

A series of financial scandals have dogged the Glonass program.

On May 16, the Moscow police reported that high-tech company Synertech's management had stolen at least 85 million rubles ($2.7 million) which had been allocated to them for work on a Glonass research project. Synertech is a joint venture of EADS Astrium and Tesat Spacecom with Russian Space Systems.

The Interior Ministry previously initiated criminal proceedings in July 2012 following the embezzlement of over 565 million rubles ($18 million) in federal budget funds allocated for Glonass. The ministry suspected Russian Space Systems' management of concluding research contracts with commercial organizations that had neither the equipment nor the qualified personnel to implement them.

The Glonass program was initiated in the 1970s but underwent a radical revamp in 2001. The 24 satellites comprising the system were put into orbit by 2010 after several costly malfunctions and launch failures by carrier rockets. The program has cost 140 billion rubles ($4.4 billion) to date, and its budget for 2012-2020 stands at a further 326 billion rubles ($10 billion).


Related Links
Station and More at Roscosmos
S.P. Korolev RSC Energia
Russian Space News

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

First Gagarin film turns Soviet idol into new Russian hero
Moscow (AFP) June 19, 2013
Strapped in an orange suit in his spaceship, Yuri Gagarin smiles as the rockets roar and chirpily tells mission control: "Let's go!" A new Russian film - "Gagarin. First Man in Space" - is the first full biopic on the pioneering cosmonaut ever to be released in Russia or the Soviet Union. Until now, Gagarin's 108-minute orbit of the Earth in 1961 appeared almost too hallowed a subjec ... read more

Scientists use gravity, topographic data to find unmapped moon craters

Australian team maps Moon's hidden craters

LADEE Arrives at Wallops for Moon Mission

NASA's GRAIL Mission Solves Mystery of Moon's Surface Gravity

Study: Mars may have had ancient oxygen-rich atmosphere

Opportunity Recovers From Another Flash-Related Reset

ExoMars 2016 Set To Complete Construction

Mars Water-Ice Clouds Are Key to Odd Thermal Rhythm

NASA Bill Would 'End Reliance on Russia,' Nix Asteroid Capture Project

Britain shut down UFO desk after finding no threat: files

New Zealand emerges as guinea pig for global tech firms

NASA announces eight new astronauts, half are women

China's space program less costly

China seeks to boost share of satellite market

Space lotuses to touch down in Shanghai

Half-Time for Shenzhou 10

Accelerating ISS Science With Upgraded Payload Operations Integration Center

Strange Flames on the ISS

Europe's space truck docks with ISS

Russian cargo supply craft separates from International Space Station

Plan for modified European rocket gets backing

Peru launches first homemade rocket

The Centaur Upper Stage

INSAT-3D is delivered to French Guiana for Arianespace's next Ariane 5 launch

NASA's Hubble Uncovers Evidence of Farthest Planet Forming From its Star

Exoplanet formation surprise

Sunny Super-Earth?

Kepler Stars and Planets are Bigger than Previously Thought

New method to distinguish between neighbouring quantum bits

Working backward: Computer-aided design of zeolite templates

Raytheon extends ballistic missile defense capability through radar modernization effort

An innovative material for the green Earth

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement