According to official reporting in St. Petersburg, the city’s Moscow District Court has taken municipal deputy Oleg Starozhukov into custody on charges of fraud and embezzlement involving 20 million rubles of city budget funds. The events lay out a troubling sequence of actions tied to a municipal contract and a construction project that were supposed to improve a residential area in 2021. The case suggests that funds were diverted inappropriately during the administration of the Zvezdnoye district, raising questions about governance, procurement oversight, and the handling of public money in local government. (Citation: Fontanka)
Investigative materials outline that on December 26, 2020, the Zvezdnoye municipality administration entered into a contract with Inspectstroyservis LLC, a construction company contracted to carry out improvements in the district. The contract, as described by investigators, was executed in a manner that did not meet expected standards, with funds reportedly routed to the contractor through improper channels. The implication is that there was mismanagement of budget allocations intended for public works, and that the flow of money may have circumvented proper procurement and accounting procedures. (Citation: Fontanka)
The alleged consequences of these actions include a reported damage to the St. Petersburg budget amounting to 20,005,026 rubles. Investigators have indicated that the money may have been stolen by unidentified individuals pursuing personal enrichment. The case centers on whether officials, including the deputy in question, were complicit in or aware of the irregularities connected to the contract and the subsequent disbursement of funds. Starozhukov has been held in custody with a provisional detention period extending until May of the year following his arrest. (Citation: Fontanka)
Starozhukov was detained on March 10 in connection with the investigation. He serves as a member of the Gagarinskoye city council and is also listed as the general director of STR LLC, a company active in the construction sector. The facts presented by investigators raise questions about potential conflicts of interest, oversight gaps, and the effectiveness of municipal controls over contract awarding and project execution. The case continues to unfold as authorities review financial records, procurement documents, and project progress reports related to the 2021 improvement work. (Citation: Fontanka)
This development follows a broader pattern that has appeared in various regions, where officials are scrutinized for pension fund misappropriations or other large-scale embezzlement schemes. While the current focus is on municipal procurement and the alleged diversion of funds in St. Petersburg, the underlying issue—how public resources are safeguarded against theft and waste—remains a critical topic for local governance and public trust. The investigation emphasizes the need for transparent contracting practices, robust internal controls, and independent oversight to prevent similar incidents in the future. (Citation: Fontanka)