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Criminal case initiated on reconstruction of Historical Museum

The Prosecutor General’s Office initiated criminal proceedings on the fact of illegal use of budget funds allocated for the reconstruction of the building and purchase of equipment for the State Historical Museum on the basis of the crimes, stipulated in the Articles 189 (Violation of the procedure for holding public auctions or tenders), 304 (Abuse of official position), 306 (Signing of contract, public procurement contrary to the Interests of the Kyrgyz Republic), 308 (Illegal use of budgetary funds) and 221 (Abuse of authority by employees of commercial or other organizations) of the Criminal Code of the Kyrgyz Republic.

Based on the results of the inspection, which was completed by the Prosecutor General’s Office, it was found out that the officials of the Department of Housing and Civil Construction of the State Agency for Architecture, Construction, Housing and Utilities, in violation of the requirements of the legislation on public procurement without a tender signed with SMU-3 LLC a contract for repair works for 690,500,000 soms and an additional agreement on the transfer of 869,447,114 soms for the purchase of the equipment for the museum.

In total, at least 1,520,309,404 soms were transferred to the accounts of SMU-3 LLC.

Without contractual obligations with the Department of Housing and Civil Construction on the delivery of museum equipment and the decision on allocation of funds for its acquisition, SMU-3, which was only a repair contractor, signed a contract with a German company for the supply of equipment with the cost €8,890,321. At the same time, the German company itself determined the list of the supplied equipment.

As a result, the exhibits, not fitting in the museum concept, were imported for a total of 55,593,772 soms.

In violation of the current legislation, a cafeteria with equipment purchased for 23,823,644 soms is illegally located in the same room with the exhibits and is not actually used.

In addition, certain materials available on the domestic market of the republic were brought from Germany with high costs, transportation costs and payment of customs and tax duties.

As a result of the illegal signing of the contract with the German company in foreign currency, the exchange difference due to the increase in the value of the euro amounted to 42,311,428 soms.

According to the act by the Accounting Chamber, the contractor SMU-3 LLC overestimated the amount of works for 20,310,000 soms. Thus, the unlawful actions of the officials of the department and the management of SMU-3 LLC led to the illegal use of budgetary funds for the total amount of 118,215,200 soms, causing damage to state interests.