Multimillion-dollar embezzlement during water pipeline repairs uncovered in Karabulak
Capital repairs to the water supply network in Karabulak, Ingush, where residents have been complaining for years about serious water supply problems, have still not been completed by the contractor whose company received over 160 million rubles from the budget.
As reported by "Caucasian Knot," Karabulak has experienced regular water supply interruptions for over 20 years, and numerous appeals from residents to various authorities demanding a solution have yielded no results. In January 2025, residents complained that in the course of a month, "there were more accidents than days with running water." In May 2025, the bankruptcy trustee of the state-owned enterprise Ingushregionvodokanal was taken into custody in a case involving the transfer of water supply facilities to private ownership. The damages exceeded 99 million rubles.
Karabulak's water supply system is in severe disrepair; a complete overhaul would require billions of rubles, which the municipality is unable to find. As a result, officials are leaving the city's water supply in a state of collapse, residents have stated.
A large-scale embezzlement of budget funds during water supply network repairs in Karabulak is being investigated in Ingushetia. The head of a contractor is suspected of embezzlement under a state contract, under which his company received over 160 million rubles from the budget, the republic's prosecutor's office reported today.
In the summer of 2025, the Ingush Ministry of Construction signed a state contract with Mayak LLC. This organization was supposed to carry out major repairs to water supply networks in Karabulak by December. According to the reports and other signed documents, the work was completed and paid for in full.
In February, the Karabulak prosecutor's office conducted an inspection and discovered that the contractor had not, in fact, completed all the work specified in the contract and paid for by the republic's Ministry of Construction.
The state television channel Magas 24 aired a report on the large-scale reconstruction of water supply networks in Karabulak on September 11, 2025. In the report, Ingushetia's Construction Minister, Musa Iliev, posing against a backdrop of new pipes, announced that 165 million rubles had been allocated for water main repairs in Karabulak. The work, which involved replacing approximately 18 kilometers of water mains, was planned for 17 streets in the city.
The republic's Investigative Committee has opened a criminal case against the organization's director for large-scale fraud (Part 4 of Article 159 of the Russian Criminal Code carries a sentence of up to ten years in prison). According to the agency, the businessman knowingly submitted false information about the volume of work performed in acceptance certificates in order to receive full payment under the contract.
"Major repairs to water mains in the city of Karabulak have not yet been completed," the Investigative Committee said in a statement.
According to investigators, the damage exceeds 1 million rubles. The agency did not report the suspect's arrest.