NABU, SAPO file indictment in National Guard UAH 81 million embezzlement case

On Nov. 2, 2021, the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO) referred the case of embezzling the National Guard of Ukraine's UAH 81.64 million to the High Anti-Corruption Court.

The following persons will face trial:

 

• the former Commander of the National Guard of Ukraine - Part 5 Art. 191, Part 4 Art. 368, Part 5 Art. 27, Part 2 Art. 28, Part 4 Art. 358 of the Criminal Code of Ukraine;
• the former Deputy Head of the Main Housing and Maintenance Department of the Armed Forces of Ukraine - Part 5 Article 27, Part 5 Article 191, Part 4 Article 368 of the Criminal Code of Ukraine;
• the former Deputy Head of the Centralized Analysis, Accounting and Reporting Unit of the Financial and Economic Department of the Main Housing and Maintenance Department - Part 5 Art. 191, Part 4 Art. 369 of the Criminal Code of Ukraine;
• a former MP, the beneficial owner of Ukrbud Development LLC - Part 5 Art. 191, Part 4 Art. 369, Part 3 Art. 209, Part 3 Art. 28, Part 3 Art. 358, Part 4 Art. 358 of the Criminal Code of Ukraine;
• the Executive Director of Ukrbud Development LLC - Part 5 Art. 191, Part 4 Art. 369, Part 3 Art. 209, Part 3 Art. 28, Part 3 Art. 358, Part 4 Art. 358 of the Criminal Code of Ukraine;
• the General Director of Ukrbud Development LLC - Part 5 Art. 191, Part 4 Art. 369, Part 3 Art. 209, Part 3 Art. 28, Part 3 Art. 358, Part 4 Art. 358 of the Criminal Code of Ukraine;
• the Deputy General Director of Ukrbud Development LLC for legal issues - Part 5 of Art. 191, Part 3 Art. 209, Part 3 Art. 28, Part 3 Art. 358, Part 3 Art. 28, Part 4 Art. 358 of the Criminal Code of Ukraine.

According to the investigation, in the 2000s the Main Department of the Internal Troops (later reorganized into the National Guard of Ukraine) and a developer company signed an agreement to build an residential compound with built-in parking lots and non-residential premises on the territory of a defunct military unit (almost 1 hectare in Kyiv's downtown). In turn, the National Guard was to receive 50 apartments and 30 parking lots in the same compound.

However, later, in 2016-2017, the parties concluded additional agreements under which the National Guard gave up the apartments and parking lots in Kyiv's downtown in exchange for 70 apartments in a residential compound on the outskirts of Kyiv built by the same developer. As established by experts, these apartments cost UAH 81,635,448 less than those the National Guard was to receive at the start.

During the investigation, detectives revealed new episodes of illegal activities by the suspects.

In particular, evidence was obtained that the former Commander of the National Guard had received an illegal benefit (about USD 125 thousand) from the developer for acting in its interests. He later distributed the money between himself (USD 100 thousand) and the Deputy Head of the Main Housing and Maintenance Department of the Armed Forces of Ukraine (USD 25 thousand).

As NABU also established, the National Guard Commander secretly received an illegal benefit from the former MP and a number of top managers of the developer in the form of an apartment with a total area of ​​76.00 square meters and market value of UAH 1.82 million. In order to conceal the bribery, an agreement on the alleged purchase of property rights to the apartment at a special price of just UAH 592.8 thousand by a close relative of the ex-Commander was concluded.

Moreover, the developer's former beneficial owner (the ex-MP) and top managers repeatedly used forged documents (evaluation reports prepared at the developer's request) in the process of implementing the "apartment scheme", as well as in order to further cover up a particularly grave crime.

In May 2020, NABU and SAPO disclosed case materials for review by the defense.

As previously reported, on April 29, 2020, the Appeals Chamber of the High Anti-Corruption Court collected UAH 536.8 thousand - part of the UAH 1.538 million bail - from the Ukrbud Executive Director. The court then set his bail at UAH 3 million.

The HACC Appeals Chamber also collected UAH 30 million - part of the UAH 80 million bail - from the MP, the scheme's organizer, after he breached the bail conditions. His new bail was set at UAH 100 million. Moreover, the ex-MP voluntarily reimbursed UAH 50 million to the state budget.

 

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