Corruption at Ukrzaliznytsia: millions embezzled through paint and linoleum procurement

NABU and SAPO have uncovered a group involved in the misappropriation of over UAH 15 million from JSC "Ukrzaliznytsia" during public procurement.

Detectives established that in 2022, the organizer of the group, through affiliated officials of the Ukrzaliznytsia branch "Production Supply Center," created conditions for pre-selected companies to win simplified procurement tenders for paint and linoleum. In particular, if “unauthorized” companies participated and offered lower prices, the tenders were canceled.

Subsequently, the actual owners and representatives of these companies, in collusion with the group’s organizer, facilitated the signing of supply contracts with Ukrzaliznytsia for paint and linoleum at inflated prices.

As a result of this scheme, from September 2022 to April 2023, Ukrzaliznytsia suffered losses exceeding UAH 15 million, which the participants of the crime misappropriated and used at their discretion.

At present, five individuals have been served with notices of suspicion:

• the organizer of the group;

• two representatives of the supplier companies;

• a former deputy director of the "Production Supply Center" branch of JSC "Ukrzaliznytsia";

• a manager — head of the material support department for operational activities of the same branch.

Legal qualification: Part 5 Article 191 and Part 2 Article 364 of the Criminal Code of Ukraine.