The head of the Pension Fund of Kabardino-Balkaria was detained on Saturday on suspicion of embezzling some 68.6 million rubles ($2 million), the North Caucasian republic’s interior ministry reported.
Khasanbi Sheozhev, who has headed the republic’s pension fund since 2004, is facing up to ten years in jail if convicted.
According to police, the fund purchased an estate in Nalchik, the capital of Kabardino-Balkaria, for 106.5 million rubles ($3.2 million), however, the estate’s market value was 37.8 million rubles ($1.1 million).
Other pension fund officials and commercial structures could also be involved, police said.
Last month the republic’s interior ministry reported the detention of three top officials suspected of selling the building Nalchik’s Philharmonic Hall for 1 million rubles ($30,000) instead of the market price of 20 million ($600,000).
