MOSCOW, April 29 (RAPSI) – Rosinfocominvest, the Russian government-backed investment fund focused on information and communication technology sector, is implicated in alleged embezzlement of 1.5 billion rubles ($28.7 million), Prosecutor General Yury Chaika told Russia's upper house of parliament on Wednesday.

Over the past seven years the fund has not been implementing long-term IT projects and has not been supporting startup companies as required by its charter, according to Chaika. 

The fund deposited the money in banks and used them to buy securities suffering losses, he added.

An application has been filed with the Investigative Committee and the Investigative Department of the Interior Ministry requesting a pobe into the allegations, Chaika said.

Rosinfocominvest was established by a presidential decree in late 2007 to finance promising IT projects at the most difficult startup stage. Share capital in the amount of 1.45 billion rubles ($27.7 million) was contributed by the Ministry of Economic Development and Trade. Its only beneficiary is the Ministry of Communications and Mass Media.