Bloomberg News

Putin Threatens Executives of State Companies for Hiding Incomes

March 05, 2012

Russian Prime Minister Vladimir Putin threatened criminal proceedings against officials at state companies who fail to report incomes or ties to private businesses as the government pledges to crack down on graft.

Putin ordered Igor Sechin, his deputy for the energy sector, to prepare legislation that would impose penalties on officials who fail to disclose the information, during a meeting today at his residence near Moscow.

The prime minister, who is set to return to the Kremlin as president for at least six years after yesterday’s presidential election, called for graft probes at state companies and tighter control over management last year. Russia is viewed as the world’s most corrupt major economy, according to Transparency International’s 2011 Corruption Perceptions Index, with higher levels of perceived graft than Pakistan, Cameroon and Niger.

Sechin told Putin that his review of companies in the banking, oil, gas, electricity and transportation industries has turned up more than 200 cases where management failed to provide information by the given deadline.

To contact the reporter on this story: Ilya Arkhipov in Moscow at iarkhipov@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net


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