Corruption in defense: DZVIN system embezzlement scheme uncovered

NABU and SAPO have exposed a large-scale corruption scheme in the defense sector, resulting in a loss of UAH 246 million. It involves massive funds embezzlement during the development of the automated system of the Operational Control Center of the Armed Forces of Ukraine, DZVIN.

The suspects include:

• a former deputy chief of the General Staff of the Armed Forces of Ukraine, Lieutenant General
• a former chief of Communications Troops of the Armed Forces of Ukraine, Major General
• a former head of the Automation Development Department of the General Staff, Colonel
• the director of a private company – the main contractor

Their actions fall under Part 5 of Article 191 of the Criminal Code of Ukraine.

As established, in 2016, the Ministry of Defense signed a contract with a commercial company to develop the system, despite the company lacking experience in software development. Over four years, the technical specifications were altered 13 times, allowing the project cost to rise by UAH 300 million. Additionally, the number of prototype systems was increased from four to twelve without justification, leading to extra documentation revision costs of UAH 115 million.

NABU and SAPO discovered that the developed system did not meet technical requirements at all: from incompatibility with NATO protocols to the lack of integration with other military systems. Moreover, some of the software was entirely unused. Of the 200 planned functions, only 10 were implemented.

During the investigation, detectives and prosecutors faced attempts to obstruct the case. Those involved in the scheme began hiding key documentation related to the project’s funding and development. After the investigation started, they rushed to modify the system, even offering free upgrades to make it appear more aligned with the original concept. However, due to fundamental architectural flaws, DZVIN remains beyond repair.

Despite these evident shortcomings, the Armed Forces of Ukraine officially adopted the system in late 2022. By 2024, instead of fixing its flaws or abandoning the ineffective solution, additional funding was planned for DZVIN. This suggests not only an attempt to conceal prior abuses but also to continue the corruption scheme.

It is worth noting that important examinations in criminal proceedings were conducted with the active involvement of the Ministry of Defense.