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. Last Updated: 07/27/2016

Cash for Yeltsin's Old School Missing




When President Boris Yeltsin heard that his former schoolhouse in a Siberian village was falling apart, he allocated a large sum of government money to fix it up, his office said Wednesday.


Now he's trying to figure out where the money went.


The Kremlin audit department has launched a criminal investigation into the mishandling of the cash, the Kremlin press service said Wednesday.


It said Yeltsin had earmarked 3.8 million new rubles - more than $600,000 at the time - for repairs in 1997.


The money was given in two installments to the Proekt company, which was to oversee the renovation in Bereznyaki, about 1,500 kilometers east of Moscow.


But the Kremlin audit department found that Proekt had used the money to buy construction materials at inflated prices from partner firms, then passed on the goods to companies that had nothing to do with the renovation project.


The school, meanwhile, is still badly deteriorating. The Kremlin said it would wait until after the investigation is complete before deciding whether to allocate more repair money.