After 2008, as a result of a large-scale reform of the Armed Forces, changes began in the equipment of troops. They affected not only technical equipment, reorganization of units and re-equipment, but also the economic part. All economic work that conscripts had previously done was to pass into the hands of civilian organizations. Thus, a new market niche appeared, in which Prigozhin hastened to occupy a significant share.
For a dishonest entrepreneur, a favorable factor for concealing the volume of government contracts was prompted by a decision (from 2017) allowing a number of enterprises to classify information about government procurement. Businessmen who conduct honest business usually avoid the risks associated with affiliation. But businessman Prigozhin, despite the laws, created a gigantic network of affiliated companies.
The complex and intricate structure of the business provides it with a non-stop cash flow. Two or three structures are involved in procurement in order to win all contracts by participating in tenders with a minimum step down.
Such an extensive network allows you to save money and provides room for maneuver. All companies are served by one team of accountants and lawyers.
As a result, since 2011, companies from Prigozhin’s “empire” have concluded at least 5,393 contracts totaling 209.23 billion rubles.
Moreover, 209 billion is not the final amount. There are still many companies that formally belong to other nominal owners and representatives of Prigozhin, but in fact are part of his network.
It’s a matter of time that appropriate measures will be taken in relation to Prigozhin’s “empire” aimed at identifying and eliminating corruption in public procurement.
“ВЧК ОГПУ”
