Former deputy minister suspected in critical equipment procurement scam

NABU and SAPO have served a notice of suspicion on a former Deputy Minister for Communities, Territories, and Infrastructure Development of Ukraine for inciting an official of a subordinate state-owned enterprise to abuse their office. The official was also served a notice of suspicion for abuse of office.

In the summer of 2022, the Cabinet of Ministers allocated funds to purchase equipment aimed at providing the public with alternative sources of electricity, heating, and water supply during the winter amid the ongoing destruction of critical infrastructure.

Acting in the interests of a specific supplier, the top-ranking official induced the deputy director of the state-owned enterprise to conclude a contract for the supply of equipment at a price 30% above the market rate. In exchange, he guaranteed the official the position of director.

The actions of the former deputy minister fall under Part 4, Article 27 and Part 2, Article 364 of the Criminal Code of Ukraine. The actions of the SOE director fall under Part 2, Article 364 of the Criminal Code of Ukraine.

As a reminder, in January 2023, the Deputy Minister for Communities, Territories, and Infrastructure Development of Ukraine was exposed receiving USD 400,000 as an undue advantage. The funds were intended to ensure the procurement of equipment at inflated prices from pre-selected companies. This case is currently being heard by the High Anti-Corruption Court.