Bank Severnaya Kazna top management’s agreements declared void

The agreements signed with Bank Severnaya Kazna’s (now the asset of Alfa-Bank) top managers that provided the latter with greater salaries, a life time medical insurance and impressive redundancy payments have been declared void and cancelled.

Following the order of the Russian Federation’s Deputy Prosecutor-General, the region’s public prosecution authorities carried out an investigation of the bank’s former managers allegedly illegal practices and found out that the offense did take place. It was detected that in October 2008, despite the ongoing economic crisis and the bank’s being unable to meet its customer obligations, Chairman of the Supervisory Board Andrei Volchik signed illegitimate agreements with seven of the bank’s top managers. The agreements provided for a pay rise up to 750,000 RUR a month, a life time medical insurance, and eighteen-million-ruble redundancy payments for each and every of them.

The authorities keep looking into this criminal case (charge based on Article 201 of the Russian Federation Criminal Code).

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