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Government Space

Russian Space Agency Misused $1.8 Billion, May Be Replaced 94

An anonymous reader writes: After a pair of high profile launch failures in the past few months, Russian space agency Roscosmos is making headlines again: this time for corruption. A public spending watchdog reported that the organization had misused 92 billion rubles ($1.8 billion) in 2014 alone. Deputy Prime Minister Dmitry Rogozin said their space efforts have been undermined by rampant corruption. "We have uncovered acts of fraud, abuse of authority (and) document forgery. With such a level of moral decay, one should not be surprised at the high accident rate." He also said Roscosmos is to be "abolished," and replaced by a state corporation of the same name by the end of the year. "In its new, corporate identity, Roscosmos will be responsible not only for setting mission goals but managing wages for space industry workers and modernizing production facilities."
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Russian Space Agency Misused $1.8 Billion, May Be Replaced

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  • I am shocked and appalled.

    • This has been going on since the days of Sputnik and Uri Gagarin. Even the great Sergei Korrolyev (The master mind behind the space race) used the budget as his own personal slush fund
  • The problem (Score:5, Insightful)

    by CanadianMacFan ( 1900244 ) on Tuesday May 26, 2015 @04:53PM (#49777965)

    Was probably that they were bribing the wrong people, not the corruption itself.

    • Pah. More like they got on the radar by losing a couple rockets. Putin's not above trumping up charges against people who piss him off.

  • by fuzzyfuzzyfungus ( 1223518 ) on Tuesday May 26, 2015 @04:55PM (#49777975) Journal
    So, let me get this straight: your public-sector space program is a fucked-up labyrinth of corruption, fraud, and mismanagement.

    You propose to replace it with a sole-source, crony capitalist, 'state corporation', to take advantage of the important synergies between the public sector's capabilities in corruption and mediocrity and the private sector's sophistication in financial and organizational malfeasance?

    Christ, guys, if you keep this up I'll start feeling good about US mil/aero procurement practices by comparison...

    You can argue about the relative virtues of public sector and private sector agents for various purposes; but there is no lower form of life than the crony capitalist entity when it comes to corruption.
    • by msauve ( 701917 ) on Tuesday May 26, 2015 @05:03PM (#49778015)
      The Russian government has more efficient and cost effective methods of corruption.
      • by Rei ( 128717 ) on Tuesday May 26, 2015 @05:11PM (#49778067) Homepage

        This is, after all, the same country whose 28 mile road to the Olympics cost more than if they'd covered the whole road with gold medals two layers thick. ;)

        Concerning this privatization, the only question that remains is, which friend of Putin is going to get to "buy" the space agency at a " fair market value" ;)

      • The Russian government has more efficient and cost effective methods of corruption.

        Much better leak controls as well. Documents that can expose corruption are labeled state secrets and whistle-blowers are imprisoned for exposing state secrets. Think how much they can save on tiresome book-cooking and cover stories.

    • And where will all the employees for this "new" corporation come from? Perhaps Russia has a bigger space exploration industry than I'm giving it credit for, but my guess is Roscosmos.
      So to sum up, this reorganization will keep the same name, operate out of the same facilities, and (likely) keep a substantial amount of the same employees. The only difference(?) is that instead of a state-run agency, it will be a state-run corporation. Oh and magically all the corruption will stop.
    • What is really going on is that there were two high profile rocket explosions. As long as the rocket launches were going fine, no one cared about the corruption. Now so "something" needs to be done, so they will take this action against corruption to fix the problem.
      • While you are right, what puzzles me here is that they name corruption as the cause of problems. Usually, even if you identify corruption as a problem, you do not call it corruption, nowhere and never (and it's not as if Russia is the only country where corruption is rampant). While I wonder what exactly hides behind this news tidbit -- and we all know that the message itself is likely very far from communicating what is actually happening or intended -- I assume that even bringing up corruption in this con
        • Yes, two birds with but one stone.

          There really is a movement in Russia to do something about the rampant corruption.

          There really have been 2 big rocket mistakes recently, that a non-corrupt agency (Go NASA; seriously, you rock) would likely have caught.

          To really end corruption, in any agency; he's going to have to take direct control of it. This is going to be a double win for Putin in Russia. The man can do no wrong. I think I'm becoming a fan.

          And btw, doesn't NASA report to the President? Doesn't congress

    • Actually, this sounds to me a lot better than what happens in the U.S. -- when does a corrupt U.S. Federal agency ever get cleaned out top to bottom?
      • If I had the slightest confidence that this would actually involve a 'top to bottom' cleaning; I might be more optimistic(though with the caveat that 'top to bottom' purges have the unfortunate side effect of causing massive attrition among your skilled labor, even the stuff not in position to do anything more corrupt than take an extra long lunch break; which could be pretty brutal for an entity that is supposed to do rocket science). As it is, this sounds a lot more like some deck-chair shuffling.

        If th
    • by Anonymous Coward

      'Russian space agency Roscosmos is to be "abolished," and replaced by a state corporation of the same name.'

      Well alrighty then! I'm sure this will be little more than a new paint job on an old boat.

    • "You propose to replace it with a sole-source, crony capitalist, 'state corporation', to take advantage of the important synergies between the public sector's capabilities in corruption and mediocrity and the private sector's sophistication in financial and organizational malfeasance?"

      (No, I'm not going to write it! NO! I said! My will is strong! I cannot...)

      In Soviet Russia, State corrupts Corporations!

      (Dagnabbit...)

  • Meta-corruption? (Score:4, Interesting)

    by Anonymous Coward on Tuesday May 26, 2015 @04:57PM (#49777985)

    Knowing what things look like in Russia, one has to wonder whether this is has some elements of politics as well - is one of the Russian oligarchs trying to take control of the space industry and get more money into their pockets by replacing the existing organization with one tied to themselves? Knowing how rampant corruption runs in Russia, announcing it so dramatically at this point in time might have ulterior motives...

    • It's even simpler - they have a new chief of the space agency, two spectacular failures to reach an orbit in one month and the new cosmodrome which was promised to Putin to be able to launch its first rocket by the end of this year (which is clearly impossible). So, it's time to sacrifice some person or two.
  • That's a lot of money to lose... I wonder if Russia has some off-the-books military project so secretive they can't even account for the money going into it.

  • by stonedown ( 44508 ) * on Tuesday May 26, 2015 @05:01PM (#49778011) Homepage

    When Putin charges someone with corruption, it's usually because they control government expenditures and are unwilling to give him his usual kickback. So, it looks like he's going to create a new space agency and install an ally to take advantage of the inherent business opportunities provided by access to a budget of over $5 billion.

    Read more about Putin's kleptocracy here:

    http://www.reuters.com/investi... [reuters.com]

  • Corruption?! In Russia?! Unthinkable... I won't believe it.

    * so much sarcasm*
  • Who the fuck messed around with the classic layout of Slashdot?

    Now there's either way too much margin between posts or not enough space between lines in our user pages... Somebody's messing around without checking what they're doing.

  • So the solution to rampant corruption is to rebrand it, spin it as a corporation, and hope for the best? That sounds like great logic, especially in Russia.
    • Rebranding?! They're using the same name - 'Ruscosmos' - for the new agency, instead of giving it a new name.
      • by Lagmo ( 972467 )

        Rebranding?! They're using the same name - 'Ruscosmos' - for the new agency, instead of giving it a new name.

        Indeed 'Ruscorruptmos' has a nice ring to it :)

  • For all the people comparing Russian corruption to other countries, particularly the US... We all have to realize it's present everywhere but there's also full spectrum of colors and subcolors that could describe types and severities. Certain types of corruption are far more rampant in some countries while negligible in another, and vice versa. Anyone who thinks there's a country that does not have any corruption is a devoted blind fool. Overall however, I would definitely put most "developing" countrie
  • and replaced by a state corporation of the same name by the end of the year. "In its new, corporate identity, Roscosmos will be responsible not only for setting mission goals but managing wages for space industry workers and modernizing production facilities."

    THAT'S how you fight corrupt (semi) public officials! You turn the whole thing in a corporation. When the executives then give themselves exorbitant salaries and benefits (incl. pensions), and hand themselves 15-25% wage increases year over year, while at the same time "managing wages for space industry workers" and doing a "realignment" every couple of years, it's just good business!

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