Corruption in cable procurement for Ukrzaliznytsia: MP suspected as co-organizer (PHOTOS)

NABU and SAPO have notified a current Member of Parliament of Ukraine, a co-leader of an organized group, of suspicion of embezzling funds from JSC "Ukrzaliznytsia" during the procurement of cable and wire products.

As established, the suspect and his accomplice, an entrepreneur, devised a scheme involving the supply of products to JSC "Ukrzaliznytsia" at inflated prices. To achieve this, he conspired with members of another organized group, which included, among others, an Ukrzaliznytsia official. Acting as a kind of Ukrzaliznytsia's "back office," members of the second organized group informally controlled its operations and could ensure the victory of "proper" companies in Ukrzaliznytsia tenders for a certain percentage of the contract value.

As a result, during 2021–2022, entrepreneur-controlled companies illegally won several UZ tenders for the supply of cable and wire products. With the assistance of Ukrzaliznytsia officials, these companies coordinated their actions and artificially inflated the expected product value. As a result, Ukrzaliznytsia entered into contracts with the entrepreneur-controlled companies, which supplied products at inflated prices.

Finally, Ukrzaliznytsia incurred losses exceeding UAH 140 million, which the crime participants misappropriated and used at their discretion.

The actions of the co-organizer of the group have been classified under Part 3, Article 27, and Part 5, Article 191 of the Criminal Code of Ukraine. In total, eight individuals have been notified of suspicion in connection with these facts.

In another episode related to the activities of these organized groups, seven individuals were charged with embezzling UAH 94.8 million through transformer procurement.