MOSCOW, February 26 - RAPSI. Investigators have launched an inspection into the improper use of about 1 billion rubles ($33 million) for purchasing electronic bracelets for convicts, Investigative Committee spokesman Vladimir Markin wrote on his Twitter account on Tuesday.

According to the Federal Service for the Execution of Punishments, the service forwarded materials last December regarding financial and business violations committed during deliveries of electronic monitoring equipment for convicts.

The service initiated the inspection after detaining two staff members on suspicion of extorting 2 million from a businessman.

Alexander Tyurin and Igor Fomenko allegedly demanded the money from a company general director in exchange for their promise to ensure that his bracelet manufacturing contract would not be breached.

On Monday, reports surfaced that Nikolai Krivolapov, the service's deputy director, had been dismissed. Some media linked the president's decision to dismiss him with a number of embezzlement cases concerning the service.

It was also reported that the investigation into a number of fraud and misappropriation cases will soon resume.

In late 2012, media reported that the service had allegedly purchased food products at an overvalued price. The prices were approved by the service's former chief Alexander Reimer and his deputy Nikolai Krivolapov, media reported.

However, the service has denied the information, stating that they bought the food at market price.