DEFENCE MINISTRY CHECKING FINANCIAL ACTIVITIES OF VOLGA DISTRICT

SAMARA, Volga Region, February 22 (AVN) - Financial inspectors of the Russian Defence Ministry have started checking the Volga military district, a spokesman for the district's financial and economic department said on Thursday.

The planned check is overseen by Colonel Vasily Zverev, deputy head of the financial inspection, the spokesman told the Military News Agency. Inspectors are to analyse activities of the district's main financial services, as well as financial and economic activity of its military units and administrative bodies. The check takes place in the wake of the forthcoming merger of the Volga and Ural military districts.

A source in the Volga district headquarters told the Agency the commission will pay special attention to checking whether the deals between the district and its counteragents were legal, as the region has witnessed a series of financial scandals in the past few years.

The most publicised scandal was caused by the criminal case that involved high-ranking financiers of the district. Charges of power abuse and embezzlement were brought against Major General Andrei Smirnov, the district commander's aide for financial and economic activity and head of the district's financial department, and Colonel Nikolai Krylov, head of the financial service in one of the district's units.

The officers forged documents and transferred allocations for salary payment to the accounts of several private companies. The transfer was marked as payment for construction and repairs in the district's units, but the works never took place. Besides, the financiers purchased food for the troops overpaying market prices.

The trial of the two financiers took place in the military court of the Samara garrison.