Arrests in the case of “RusHydro”: Evgeny DoD was accused in a major theft

The train in jail

Thursday, June 23, Basmanny court of Moscow arrested for two months, until August 22, the former Chairman of the Board of “RusHydro” Evgeny DoD and the chief accountant head of Department of corporate accounting and reporting of the company Dmitry Finkel.

Before they were charged under part 4 of article 159 of the criminal code (fraud in especially large size; the punishment under this article provides imprisonment for the term up to ten years), told RBC press Secretary of the Basmanny court Juno Tsarev. According to her, the petition for arrest the court directed the Investigative Committee of Russia (TFR).

DoD and Finkel was detained on Wednesday, June 22. As told RBC source in law enforcement bodies, employees SKR and FSB have met the DoD at the exit of the train, when he returned to Moscow from a two-day trip to Finland. On Wednesday, investigators conducted more than 30 searches, including in the offices of “RusHydro” and “Quadra” Mikhail Prokhorov, the Board of Directors which is headed by the DoD three months ago.

Later he Raman said that against the Manager criminal case is brought. It is Rustam Gabdulin, senior investigator for particularly important cases under the Chairman of the TFR from the Department on investigation of especially important cases against the government in the economy. Gabdulin, for example, headed the investigative group on the case of riots on Bolotnaya square on 6 may 2012.

According to investigators, top managers of the company in prior conspiracy with unidentified persons stole the property of RusHydro: we are talking about remuneration of Board members of the company by results of work in 2013. Evgeny DoD personally signed the order about special bonuses”, will pay for itself 353,21 million rubles, I. e inflating the size of the award is no less than to 73.2 million rubles, stated in the report of the representative of the RCDS Vladimir Markin.

Remuneration of top managers of RusHydro depended on the financial results of the company. To increase bonuses, the DoD and Finkel, according to investigators, is not reflected in the financial statements for 2013 paper losses of 12.4 billion roubles from depreciation 84,39% stake in RAO Energy system of East”, 29.8% of Yakutskenergo and 1.04% far East energy company.

But in the statements under RAS for 2013 “RusHydro” explained his action. The shares of the “RAO ES of the East”, “Yakutskenergo”, and far Eastern energy company was estimated at 20.2 billion rubles based on the independent appraiser’s report and in fact proved more than the market value as at 31 December 2013 to RUB 12.4 bn But, argued the company, stock prices do not reflect fair value, as traded no more than 1% of the shares. Not to reduce the profit by the amount of paper losses allows the order of the Ministry of Finance from 1999 with the notes to the accounting statements indicated “RusHydro”. The same way she did in 2014 and 2015, follows from its reporting for the company.

“RusHydro” and the award

RusHydro and the state energy company, the main owner of the hydro power plants in Russia. According to its own data, unites more than 70 renewable energy facilities, including the Sayano-Shushenskaya HPP, the largest in the country.

After the resignation of Yevgeny DoD as CEO of RusHydro, the remuneration of its senior managers has decreased dramatically: for the first quarter of 2016 almost half, to 159 million rubles, follows from the report of the company. In the first three months of the year increased key performance indicators of RusHydro: revenues by 10% to 104,4 billion roubles, net profit by almost 40%, to 15 billion rubles.

Willing to compensate

Eks-head “RusGidro” have refused to plead guilty, reported by TASS, citing a source familiar with the situation. “All the claims of the investigation categorically rejected, insisting on the legality of their actions,” said the Agency interlocutor.

Thursday at court session Gabdullin said that the wife and children of DoD live abroad and the Manager can leave the country, selling the assets by 1.5 billion rubles. Also DoD and his associates are trying to destroy the evidence, but his Manager has connections in law enforcement, with the help of which it can exert pressure on the investigation.

“You have all the partners [of the offence], and the DoD is charged with committing a crime in a group of persons on preliminary arrangement”, said Gabdulin to the judge, justifying the necessity of arrest. The position of the investigator supported by the Prosecutor.

According to the DoD, RusHydro led a normal economic activity without violating the laws, and the statements have been audited and the tax auditor. Also, the top Manager said that he is ready to compensate for the damage which he, according to the TFR, caused by “RusHydro”.

Finkel also stated his innocence and asked the court not to arrest him, and placed under house arrest.

Lawyer Dodd Victoria Burkovskaya said in court that against her client gave the testimony of a secret witness. According to her, is a former employee of the company who is eight years not indexed wages. “I think he has grounds for slander”, said the lawyer. “For many years Evgeny Vyacheslavovich working in senior positions in state corporations. Thanks to his managerial qualities, the state effectively manages its assets,” said Burkovskaya.

The most expensive

Evgeny DoD is included in the list of the most expensive top-managers of Russia according to Forbes: in 2014, his compensation was estimated at $6 million, in 2015 $7 million

DoD has had a distinguished career in the power industry. How to write “Vedomosti”, the Manager liked the Chairman of the management Board of RAO UES of Russia Anatoly Chubais. In 1999, the DoD, he was Deputy head of the export Department of the RAO, and a year in the 27 years he headed the state energy holding “inter RAO”, engaged in international trade of electricity.

In 2009, when “RusHydro” after the accident at the Sayano-Shushenskaya hydroelectric power station needed a new leader, the DoD is headed by the state company. At the end of the year, the revenue of “RusHydro” amounted to 79 billion rubles., net profit RUB 10.3 billion By 2015, revenue rose to 108 billion rubles., profit up to 30 billion rubles. While in 2009-2015 company never showed a net loss.

The purpose of the DoD in “RusGidro” has contributed to Deputy Prime Minister Igor Sechin, who headed the Board of Directors of “inter RAO”, said two Federal officials familiar with DoD and Sechin. They argue that the relations between Sechin and DoD has deteriorated in 2012, when the first was headed “Rosneft”. Sechin began to argue with the government about the scheme of capitalization “RusHydro”, insisting on the occurrence in the capital of the company “Rosneftegaz”, the Board of Directors which he chaired. The government wanted to capitalize RusHydro independently, removing the dividends of “Rosneftegaz”. “DoD has taken to the conflict neutrality that could not like Sechin,” says the interlocutor of RBC.

In 2015, the DoD left “RusHydro”, and in March 2016 has led the Board of Directors of “Quadra”.