Police in Argentina have arrested six executives and former government officials over an alleged scheme to create phantom positions at Rio Santiago Shipyard (ARS).
Among those arrested are the Buenos Aires province yard’s chief executive Hector Scavuzzo and his predecessor, Julio Borovik, according to various local press reports.
Prosecutors are investigating allegations that Scavuzzo and others embezzled ARS 16m ($1.04m) between January 2012 and December 2014, according to a statement by Jorge Paolini, a prosecutor in the city of La Plata.
The defendants are accused of diverting funds by awarding false jobs at the yard, for which the employees were hired on paper only.
