Authorities find out why Bank Severnaya Kazna fails to pay

Ural Federal Districtís division of the General Prosecutorís office produced an official preliminary account of their investigation involving Bank Severnaya Kazna managementís alleged offenses. This is what the statement says:

ĎUral Federal Districtís division of the General Prosecutorís office has been informed about Bank Severnaya Kaznaís former top managersí illegal practice attempts; therefore Sverdlovsk Regionís public prosecution authorities looked into the case in accordance with the Russian Federation Deputy General Prosecutor Yu. Zolotovís request.

The reports proved to be truthful. It was detected that the bankís Supervisory Board Chairman signed some illegal agreements with seven top managers regarding their monthly pay rise up to 750,000 RUR in October 2008. In addition to the pay rise, the managers were promised a life time medical insurance and eighteen-million-ruble redundancy payments. The Chairman never consulted the Board of Directors on the matter.

Later on, four Supervisory Board members who had been fired actually tried to use these papers (compiled with no respect for the federal legislation) in court to claim a total of 70 million RUR from Bank Severnaya Kazna. The claims were rejected and the agreements declared void.

It was also revealed that the bankís managers used the companyís money to buy over 100 million RUR worth of promissory notes (not backed by any assets whatsoever), which made the bank unable to pay back its customer deposits last year.

As a result, the authorities took legal action, with the charge based on Article 201 of the Russian Federation Criminal Code (abuse of power). The course of the investigation and the criminal lawsuit proceedings are being monitored by Ural Federal Districtís division of the General Prosecutorís office.í

Thus Ural Federal Districtís division of the General Prosecutorís office confirmed the reports that stated the bankís managementís actions were at the root of the companyís financial problems in October-December 2008.


Other materials on the topic::