Law enforcement agencies in Kabardino-Balkaria have uncovered the theft of  money from the federal budget allocated for construction of facilities for the republic’s prison system. A criminal case has been initiated against one of the heads of the local Federal Penitentiary Service and the deputy director of a construction company.

The investigation found that an official from the Penitentiary Service, operating in collusion with the the head of the departmental construction company, provided false documentation to monitoring bodies. He signed reports on the work performed with inflated volumes and payments.

As reported by Russian news agency SM-News, quoting a source in Kabardino-Balkaria’s police, the amount stolen amounted to about ₽6 million ($100,000).

An investigation was also launched against the head of the construction organisation within the department, who colluded to issue false records on the work performed.

The money stolen had been allocated to improve prison conditions and supervision.

Earlier this month, the theft of ₽350 million ($5.8 million) by employees of North Ossetia’s Pension Fund was revealed.

On 16 February, the City Court of Pyatigorsk arrested the minister of construction of Ingushetia, Mustafa Buruzhev, who is suspected of stealing more than ₽54 million ($1 million) from the state treasury.