Ruslan Abdullayev reported to Moscow that Daggaz built a networkof local gas pipelines measuring some 3100 kilometres.
This network was later leased to regional pipeline operator Dagestangasservice,a subsidiary of state-owned gas monopoly, Gapzrom.
However, prosecutors have discovered that other pipelines existedonly on paper, and lease payments from Dagestangasservice have allegedly beenembezzled by Abdullayev, according to reports in Russia from Interfax andKommersant.
Prosecutors have estimated that the operator paid about $2 millionbefore it suspected any wrongdoing.
Dagestan,