Embezzlement In Shipyard Lands Six Executives In Trouble

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Argentinian authorities have arrested six executives and public officials for the allegations of embezzlement of funds in the state-run enterprise Astillero Río Santiago (Río Santiago Shipyard).

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Authorities investigation into the contracts at the yard between 2012 to 2013 initiated the arrests of six officials.  If proven, the amount of the fraud would total to about $1 million.

Speed-read of the incident:

  • Authorities discovered the alleged scheme when a resident of a town some 275 miles from the shipyard attempted to collect on a public benefit for families but could not, as her husband was listed as a yard employee with a salary of $2,000.
  • Investigators allege that the yard was contracting with lower-income people to place them on the payroll, then divert their wages.

Officials facing the allegations:

  • Firm’s former chairman, Hector Scavuzzo
  • Salary and wage coordinator Rodolfo Elisetch
  • Secretary Oscar Borcerio
  • General manager July Borovik
  • Andrés Ombrosi, former chief of staff for the Buenos Aires Ministry of Production

Also, the president of the Municipal Board of Tourism for Mar del Plata, Emiliano Giri, was arrested in connection with the investigation.  He could be jailed for 10 years, if convicted.

Source: La Prensa