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FILE - In this Sunday, Oct. 27, 2013 file photo, Russian opposition leader Alexei Navalny takes part in an opposition rally in downtown Moscow. Russia’s anti-corruption campaigner Navalny on Monday, Jan. 27, 2014, launched a website to publish a wide range of data pointing to corruption in Sochi. Russia has spent about $51 billion to deliver the Winter Olympics in Sochi, which run Feb. 7-23. (AP Photo/Ebgeny Feldman, File )
Olympics: Russian activist publishes Sochi corruption file
First Published Jan 27 2014 09:37 am • Last Updated Jan 27 2014 11:29 pm

Sochi, Russia • An interactive website launched Monday by anti-corruption activist Alexei Navalny paints a vivid picture of the suspected cost overruns and conflicts of interest at the Sochi Winter Olympics.

Russia has spent about $51 billion to deliver the Sochi Olympics, which run Feb. 7-23, making them the most expensive games ever even though as a winter event it hosts many fewer athletes than summer games do.

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Navalny claims that Russia spent twice as much as necessary to build at least 10 of the Olympic venues — including the Bolshoi Ice Palace, the Fisht Stadium for the opening/closing ceremonies and the speed-skating arena.

Allegations of corruption have dogged preparations for the Sochi Games for years, as reported by The Associated Press and others. Navalny’s new website — Sochi.FBK.info — combines data gathered during his own investigations along with media reports and other activists’ analysis.

Using colorful graphics, the website makes a wide range of data accessible in English and Russian.

"Athletes are not the only people who compete in Sochi," Navalny, who finished a strong second in Moscow’s mayoral election last year, wrote on the website. "Officials and businessmen also took part in the games and turned them into a source of income."

President Vladimir Putin has rejected claims about rampant corruption in Sochi, saying the inflated prices were due to the honest mistakes of investors who underestimated the costs.

"If anybody has got this information, please show this to us," Putin said in a recent television interview. "But so far we haven’t seen anything except speculation."

A 2012 report by the government’s Audit Chamber found about 15 billion rubles (about $500 million) in "unreasonable" cost overruns in the preparations for the Sochi Olympics.

Auditors found that the work of some staff members at Olympstroi, the state company in charge of Sochi construction, between 2008 and 2010 was "conducive to incurring unreasonable cost overruns." At least three criminal investigations against Olympstroi employees have been opened, but none of them has reached court. Olympstroi has since changed its management.


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The Sochi Organizing Committee would not comment Monday on Navalny’s new website.

When asked about it, Thomas Bach, president of the International Olympic Committee, said the IOC stands "against any form of corruption."

"Whenever there have been concerns and accusations and information in the past, they have been passed on to the organizing committee," Bach said.

Navalny does not seem to provide solid evidence of how money was stolen during the many Sochi construction projects. This has proven extremely difficult to do, because the games were not covered by Russian laws on tenders and procurement, making officials unaccountable for the money spent.

Olympstroi was given free rein by Putin to "determine the ground rules for selecting investors and contractors" for Olympic venues. This created fertile ground for corruption in the allocation of funds, according to Ivan Ninenko, deputy director of Transparency International in Moscow.

Olympstroi "is even less transparent than companies in (Russia’s) state-owned sector, where corruption is rife," he told the AP.

The total amount of state contracts overseen by Olympstroi was about 700 billion rubles, or $22 billon, according to Deputy Prime Minister Dmitry Kozak, the government official in charge of the games.

A website Navalny set up in 2010, called Rospil, has monitored thousands of Russian state contracts and appealed to law enforcement agencies to get the murky ones annulled. Rospil has been successful in overturning nearly 130 contracts worth nearly $2 billion in taxpayer money. Not for the Sochi Games, though.

"Opportunities for public control are very limited" for Sochi contracts, said Konstantin Kalmykov, who works for Navalny. All it takes is a presidential or government decree to award a contract to a specific firm.

"If there were regular public control in place, that would be a big factor in saving funds and increasing efficiency of spending," Kalmykov said.

Navalny’s new website lists several Sochi construction projects with evident conflicts of interest. In one of the most glaring examples, the Ice Cube curling stadium was built by a company controlled by businessman Alexander Svishchev, the father of Dmitry Svishchev, president of the Russian curling federation, the website said, citing public records.

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