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Hi, my name is Alexandr Golovach, and I am

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a lawyer with the Anti-Corruption Foundation.

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Today, of course, I’m going to talk about the most

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important, outrageous,

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and emotionally charged issue right now: the so-called

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pension reform. In his recent video address,

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Putin asked all of us

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to treat the increase in the retirement age

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with understanding. “I ask you to treat this

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with understanding.”

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But I’m not going to do that. Instead, I’m going

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to tell you how the Pension Fund

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is literally throwing our money around.

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This is a very simple but extremely

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revealing story that perfectly

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illustrates the whole essence of both the reform itself and

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the Pension Fund, and in general how

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the authorities handle the money that we

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have entrusted to them. Last week, Georgy Alburov

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told you about the billion-ruble personal

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fortune of the head of Russia’s Pension Fund,

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Anton Drozdov.

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Be sure to watch that video if you

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haven’t done so yet. While talking about

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luxury real estate, my colleague

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briefly mentioned an official

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BMW company car. That’s what we’re going to talk about today.

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When he reports on the

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triumphant increase in pensions by a token amount

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and then gets into an official BMW and

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drives to a seven-room apartment in the

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most expensive district of Moscow—well, just recently,

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on June 26, the Pension Fund threw away

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almost 100 million rubles on car rentals

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($1M+). The contract was signed 10

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days after Dmitry Medvedev submitted

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the bill to raise the retirement age

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to the State Duma (the lower house of parliament), that is, at the very

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height of the debate, and after the same

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Anton Drozdov had declared that only raising

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the retirement age would make it possible to increase

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pensions. From the documentation for the signed

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contract, we learned that the

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executive directorate of the Pension Fund of Russia—its main

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body—apparently cannot collect your

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pension contributions without 6 black BMW 5 Series

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cars, model year 2018,

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22 black Toyota Camrys, four

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of which were also made that year, and

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14 lower-class cars.

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Another 51 vehicles were rented

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for regional

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branches. Let’s talk in more detail, of course,

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about the cost: to rent just one such

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car, the Pension Fund pays 560,000

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rubles per month, and over six months the rental of

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one car

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is budgeted at 3.36 million

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rubles. That is more than

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the cost of a brand-new car from a dealership.

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Why so expensive, you ask? First,

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because the cars are provided with

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drivers, and under the contract their work schedule is

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practically around the clock: 7

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days a week, 17 hours a day. And if

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the service acceptance reports for

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July are to be believed, that is exactly how much they had

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to work. The Pension Fund’s management really does not spare itself;

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even on

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weekends they never stop thinking about us. I can just picture it:

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Anton Drozdov is visiting

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his mother-in-law’s dacha on Rublyovka (an elite suburb outside Moscow) on a Saturday, and then

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suddenly remembers poor Russians and

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rushes back to the office to think urgently,

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leaning back in the rear seat of a leather-upholstered

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BMW, about what completely unnecessary thing

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he could cut in order to

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raise Russians’ pensions. We also

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looked at the Pension Fund’s last 7

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car-rental tenders,

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and what do you think? Literally everything there

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points to cartel collusion.

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For inexplicable reasons,

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for many years in a row only three

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companies have taken part. Apparently, no one else is interested in the Pension Fund’s generous contracts.

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The others do not even try to

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participate. At the same time, the founders have a lot

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in common.

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They all seem to be very short on imagination:

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different people gave their companies

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the same names—one has “Bouquet,” and another has

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“Bouquet” too; one has “CDT,”

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and another has “CDT” as well. They are registered at

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the same address. At all

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the auctions, the price dropped only symbolically, as

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usually happens in cases of collusion—by no more than

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1 percent. Based on these facts, we

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have appealed to the Federal Antimonopoly

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Service. We will seek official recognition

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of a violation of antitrust

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law and the transfer of the materials

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for the opening of a criminal case.

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You can’t even find a website online for

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the company that won the latest tender.

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According to its 2017 tax filings,

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it had only one employee. And yet

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the Pension Fund signed with it

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a contract worth 350 million rubles ($3.5M+).

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And besides spending on car rentals,

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there are also enormous expenses for servicing

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the Pension Fund’s own

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vehicle fleet: 24 million rubles

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in the last year alone. From these contracts, we

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learn that on the Pension Fund’s books there are at least

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a luxurious pair of BMW 7 Series cars,

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one Audi A8, and three Audi A6s.

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Service in VIP airport lounges across

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the country, and a monthly subscription to

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Forbes magazine,

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and Esquire as well, are all paid for out of the pockets

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of Russians. At the same time, they insist

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that it is impossible to find the funds

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to save the pension system, while at the same time

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cynically spending enormous sums on

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their own comfort—not on anything

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necessary, but specifically on comfort and

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prestige. The members of the Pension Fund’s board

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the fund sincerely believes that they are entitled to it

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such things

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and that cannot but be infuriating — it’s not that we are like this,

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it’s life that is like this.

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But the fact that the budget has been losing tens

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of millions, including as a result of cartel

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collusion,

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with the complete connivance of part of the elite

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and the Pension Fund, is simply enough to drive one

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into a rage. When they pay ordinary

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people their own money

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in the form of humiliatingly small pensions or

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disability benefits, they count every

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kopek; but when it comes to spending

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on themselves, they spare no expense and

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deny themselves nothing. They do not even care about

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the millions stolen right under their noses.

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Of course, that money would not be enough

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to provide all pensioners with decent

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pensions. But you know, I would very much like

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to see some elderly pensioner

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come to the main building of the Pension

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Fund on Shabolovka (a street in Moscow),

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and Anton Drozdov tells her there:

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“Ma’am, you worked your whole life in

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industry, and you are entitled to 10,000

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rubles a month, while I, a bureaucrat,

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and hanger-on, am entitled to half a million

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rubles a month just for a BMW 5 Series

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with a driver,”},{

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“plus another 300,000 rubles a month in salary. And what

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is so unusual about that? My daughter’s university in Scotland

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has to be paid for, and the utility bills

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are so expensive when your apartment is 330

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square meters (about 3,550 sq ft) in central Moscow.”

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“Please be understanding, ma’am.” I

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will repeat the obvious point:

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the authorities must start with themselves, and if they

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do not want to do that, then we must

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make them. On September 9, there will be

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a nationwide protest against

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the pension reform.

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Take part in the nationwide

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protest.

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This is the best opportunity to express your

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disagreement with the increase in the retirement

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age. If you are in Moscow, then

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come to Tverskaya Street at 2:00 p.m., and

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if you are in St. Petersburg, then also at 2:00 p.m. to

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Lenin Square.

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See you there.

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[music]

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