RSP, a Russian collection society, has cut ties with RAO, another collection society in the country, amid accusations of fraud and corruption.
The background to all of this is that Sergei Fedotov, the general director of RAO, was arrested in June, accused of syphoning 500m rubles (circa $7.7m) out of his organisation. RAO has come out fighting, saying there are “no grounds” for any of these accusations. It was, however, subject to police investigation last summer after it announced it was going to merge with both RSP and VOIS (a neighbouring rights society). This is when the accusation of the 500m rubles being funneled out of the organisation – “in a series of dubious real estate deals” – was made. It is, frankly, a hell of a story so we are keen to see how it all plays out.