You're reading: Probe exposes almost $8 bln abuse by Moscow authorities

Russia's financial watchdog uncovered almost $8 billion of financial violations by Moscow authorities under ousted mayor Yuri Luzhkov, highlighting the country's battle with rampant corruption.

Luzhkov, 74, who is married to billionaire property tycoon Yelena Baturina, oversaw Moscow’s transformation from a grim Soviet capital to a glitzy metropolis during his 18-year tenure as mayor.

He was sacked by President Dmitry Medvedev in September amid a public row with a Kremlin upset by reports of wide-scale corruption and a lack of control over the city’s finances. Both he and his wife denied any wrongdoing in the lucrative construction sector.

A probe by the State Audit Chamber revealed 230 billion roubles ($7.82 billion) of financial violations by the Moscow government over two years, watchdog’s head Sergei Stepashin said on Wednesday, declining to say when this happened.

Russia is perceived as the most corrupt country in the G20, according to Transparency International, placing it on a par with Cambodia and Kenya. Medvedev’s critics say he has not kept his promises to crack down on graft since he took office in 2008.

Luzhkov was replaced by Sergei Sobyanin, until then chief of staff for Prime Minister Vladimir Putin.

Since his sacking Luzhkov has been denied a visa for Latvia. He recently received a British visa to visit his family in London, Itar-TASS news agency said on Tuesday, quoting a source close to the British Home Office.
If Luzhkov does move to Britain, he will join a growing list of high-profile Russians residing in London, such as billionaire Boris Berezovsky.