As part of the control over the expenditure of funds for the preparation of the XXIX world winter Universiade 2019 in Krasnoyarsk, the Service launched a mechanism for budget monitoring

Published: 09.02.2018

On February 7, 2018, Russian President Vladimir Putin held a meeting in Krasnoyarsk on preparations for the XXIX world winter Universiade. The event was attended by the Director of the Federal Financial Monitoring Service Yury Chikhanchin. 

Answering the question of the Head of State whether there was risk of fraud, Yury Chikhanchin said:

"Let's hope there isn’t, Mr. President. We are actively working together with the Treasury, and the control system is now being aligned. The figures that you mentioned for additional funds and related to unspent funds - about 300 million, we will now see if there are questions, then we will work together with law enforcement agencies." 

From the first day of preparation for the large-scale sports event Rosfinmonitoring carries out  the analysis of possible risks during its objects financing within the  experiment - Budgetary monitoring. 
Financial intelligence of Russia in close cooperation with the Treasury of the Russian Federation, and with the involvement of prosecutors and FSB, is continually assessing the distribution of budget funds allocated for the preparation and holding of the Universiade 2019. (A total of 51.3 billion rubles – - for the construction and reconstruction of 34 objects).

According to the results of the system analysis carried out by Rosfinmonitoring, each cooperation participant and each object of construction are assigned a level of risk. 

The results of the work demonstrate that the main risks, according to the Service, may include:

  • The risk of collusion of the parties at the time of placing the state procurement, which may lead to restriction of competition and drive up the cost of the state contract;
  • corruption risks associated with lobbying the interests of controlled organizations;
  • risk of withdrawal of funds into "shadow" turnover by making financial transactions related to the transfer of funds to "technical" companies, in the form of loans to affiliated persons, to the accounts of individuals with possible further cashing.

Taking into account the identified risks, verification activities are carried out. A number materials regarding the objects of the audit of the Federal Financial Monitoring Service were sent to law enforcement agencies for a possible response.

XXIX world winter Universiade will be held in Krasnoyarsk on 2-12 March, 2019.