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Olympics contractor arrested for fraud

Moscow - Russia has arrested the head of an engineering company after he allegedly stole $1.6m from the construction budget for the 2014 Winter Olympic Games in Sochi, officials say.

Moscow's Tverskoy District court on Tuesday ordered the arrest of Viktor Matveyev over suspicions that he defrauded Olympstroi, Russia's state company overseeing construction works, Russia's interior ministry said.

Matveyev's engineering company Tekhnoprom was tasked with "developing the general scheme of Olympic object construction organisation," and showed "fictitious documents showing work completion," for which the company was paid $1.6m.

He then "stole the money", and was rushed to a cardiological centre when police wanted to question him.

Three days later he "left the facility to escape criminal justice" however, according to the ministry statement.

Police on Saturday detained Matveyev when he was trying to flee Russia.

Tekhnoprom is one of the major engineering contractors of the Olympstroi state company in the future Olympic city and was one of the authors of the "green standards" which organisers have said will "save the region's unique nature" despite the vast development.


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