Corruption in defence procurement: over UAH 102 million embezzled (PHOTOS)

NABU and SAPO, together with the SBU, have uncovered a corruption scheme that embezzled more than UAH 102 million. These funds were intended for dynamic protection for Ukrainian Armed Forces' armoured vehicles. Among the suspects are three members of an organised group.

According to the investigation, in April 2022, during the active phase of the russian offensive, the Ministry of Defence signed a contract with a state-owned enterprise for the urgent procurement of dynamic protection for tanks.

The enterprise’s then–general director, intending to seize defence funds, involved the commercial director and the director of a private company. They concluded an agreement under which the state enterprise purchased dynamic protection components at nearly triple the actual price.

To conceal the crime, the private company’s director arranged the procurement of products through shell companies. The resulting “margin” was transferred to controlled accounts for further laundering.

Three members of the organised group have been notified of suspicion:

the former general director of the state enterprise (Part 3 Article 27, Part 5 Article 191 of the Criminal Code of Ukraine);

the commercial director of the state enterprise (Part 5 Article 191 of the Criminal Code of Ukraine);

the director of the private company (Part 5 Article 191, Part 3 Article 209, Part 2 Article 28, Part 1 Article 366 of the Criminal Code of Ukraine).

The organiser of the scheme is being tried in several other cases pursued by NABU and SAPO and is currently in custody.