Corruption at Vostochny included more than 140 criminal cases
A report from Russia today outlined the total amount of corruption so far uncovered by investigators at Russia’s new spaceport in Vostochny.
“Since 2014, more than 140 criminal cases have been opened, and the damage was assessed at 10 bln rubles,” Kurennoy said in an interview with the Efir Internet channel of the Russian Prosecutor-General’s Office. According to the spokesman, 50 individuals have been sentenced, and this year sentences for 27 people were announced.
The prosecutors have revealed 17,000 law violations during the construction since 2014. More than 1,000 people have been held accountable, including officials. Among the violations were delayed construction, multibillion embezzlement of state funds and the administration’s negligence.
Despite four years of investigation they still found 78 new law violations involving 140 companies in 2018.
It appears Russia does not know how to do capitalism properly. It doesn’t simply require a company to be privately owned. It also requires that new companies be allowed to compete, and that old companies can go out of business. Russia it appears did not understand these latter points. After the fall of the Soviet Union many individuals formed private companies from former government agencies and organizations, but then they divided up the market into territories and teamed up with the government to block any new entries.
The result of this corrupt system was rampant corruption, where the companies in power could do anything, with no incentive to produce good product.
Unfortunately, Russia’s answer to this has been for the government to take over the companies again.This will not solve their problem, merely shift the corruption from the companies to the government. Meanwhile, the quality of their aerospace products will continue to decline, resulting in the continued loss of international market share.
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A report from Russia today outlined the total amount of corruption so far uncovered by investigators at Russia’s new spaceport in Vostochny.
“Since 2014, more than 140 criminal cases have been opened, and the damage was assessed at 10 bln rubles,” Kurennoy said in an interview with the Efir Internet channel of the Russian Prosecutor-General’s Office. According to the spokesman, 50 individuals have been sentenced, and this year sentences for 27 people were announced.
The prosecutors have revealed 17,000 law violations during the construction since 2014. More than 1,000 people have been held accountable, including officials. Among the violations were delayed construction, multibillion embezzlement of state funds and the administration’s negligence.
Despite four years of investigation they still found 78 new law violations involving 140 companies in 2018.
It appears Russia does not know how to do capitalism properly. It doesn’t simply require a company to be privately owned. It also requires that new companies be allowed to compete, and that old companies can go out of business. Russia it appears did not understand these latter points. After the fall of the Soviet Union many individuals formed private companies from former government agencies and organizations, but then they divided up the market into territories and teamed up with the government to block any new entries.
The result of this corrupt system was rampant corruption, where the companies in power could do anything, with no incentive to produce good product.
Unfortunately, Russia’s answer to this has been for the government to take over the companies again.This will not solve their problem, merely shift the corruption from the companies to the government. Meanwhile, the quality of their aerospace products will continue to decline, resulting in the continued loss of international market share.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either. IMPORTANT! If you donate enough to get a book, please email me separately to tell me which book you want and the address to mail it to.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Perhaps workers don’t report mistakes because they are criminally prosecuted rather than reprimanded and trained to correct deficiencies. It is another symptom of bad management like the other ones mentioned above.