A criminal investigation over Ponamarenko's past dealings throws the company into further disarray (256 words)

Published: 12/3/2001

According to media sources, Aviastar Holding, already locked in a struggle over control, is now rocked by the news that its General Director of three weeks, Sergey Ponamarenko, is the subject of a criminal investigation by the General Prosecutor's Office of Russia. The office is believed to be looking into his involvement with lending to the coal industry in his previous role as Mayor of Shakhty. Reports in the regional newspaper Simbersky Kurier claim that the regional administration and all the "competent" federal organizations have been informed about the criminal case and a board meeting was held at the end of last week at Aviastar Holdings (given the disputed boards, this is assumed to be the newly elected board). However, Ponamarenko is reported to have left Ulyanovsk for what is described as an “unknown destination” and his position at the holding company is unclear. There is some speculation that the name of a candidate to replace Ponamerenko is already on the table, but it is unclear how the situation will develop ahead of the court hearings on 13th December over the disputed EGM that appointed a new board and Ponamerenko early in November. The election has already caused considerable confusion, as the former General Director and board refused to acknowledge its legality. Aviastar Holdings is refusing to comment on the situation, but events do have all the hallmarks of a classical Russian corporate tussle with the gloves off.

Article ID: 2938