A recent audit check at Khanty-Mansiyskiy Non-State Retirement Fund conducted upon the regional authorities’ request revealed numerous legal offenses in the way the fund’s finances were managed, the fund’s President Alexei Okhlopkov said at a press conference the other day, Kommersant reports.

Okhlopkov was quoted as saying that the fund’s asset management system had been built upon a network of management companies that were associated with the retirement fund’s previous administrators.

‘This meant these companies were focusing not only on investment but on some other tasks as well. The organizations in question are Yugra-Finance, GVP, and Nikor-Yugra. The retirement fund’s money made up over 90% of their businesses,’ Alexei Okhlopkov noted.

He also observed the auditors had found out that the fund had been using some rather complex schemes involving real estate unit investment trusts. In the end, the actual value of Khanty-Mansiyskiy Non-State Retirement Fund’s assets was 5 billion RUR lower than the figure stated in the fund’s reports. Now the fund is expected to come up with a new investment strategy within the next six to eighteen months.