Ex-Ukrekoresursy head detained on recycling scheme charges

On June 21, 2022, the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor`s Office (SAPO) detained the former director of Ukrekoresursy SE (deals with recycling) suspected of embezzling UAH 13.69 million. The investigation has evidence that the former official, along with representatives of private structures, organized a scheme for the purchase of reverse-vending machines of inadequate quality. They are all facing charges, their actions falling under Part 5 Art. 191 of the Criminal code of Ukraine.

 

As established, in August 2012, the then director of Ukrekoresursy initiated the purchase of 100 MT-500 reverse-vending machines.

The items in question were capable of taking up to 1,000 plastic bottles and 800 aluminum cans and were manufactured by the only company registered in the United States - RecycleTech. However, instead of negotiating with this manufacturer, another US company was chosen, offering 100 reverse-vending machines with a capacity of 300 plastic bottles and/or 400 aluminum cans for USD 100,000. The examination conducted in the course of the investigation showed the machines were unsuitable for use. As a result, the malefactors misappropriated public funds in the amount of UAH 13.69 million.

To give the appearance of legality of the purchase, the suspects introduced a change to the terms of purchase, which concerned both the technical requirements for machines and the order of payments (full prepayment, change in cost due to alleged change in the UAH/USD rate, etc.). In order to disguise their criminal actions, an intermediary - a company registered in Panama - was involved.

The investigation is now in progress.

 

 

According to Article 62 of the Constitution of Ukraine, a person is considered not-guilty in the commission of a crime and cannot be subject to criminal punishment until he or she is found guilty by court.