NABU and SAPO prevented causing USD 80 million losses to the United Mining and Chemical Company

20 thousand tons of titanium-containing raw materials of the Public Joint-Stock Company United Mining and Chemical Company (PJSC UMCC) were seized at the initiative of NABU, SAPO and the executives of the state enterprise (SE). Thus, they prevented the export of products without payment by a foreign intermediary-company.

In the framework of jointly work of NABU, SAPO and the SE’s executives (100% state-owned) the causing USD 80 million losses to the PJSC UMCC was prevented. Such cooperation between law enforcement agencies and SE’s executives is an important tool in combating corruption.

On May 22, 2020, NABU informed the new executives of the PJSC UMCC about the intention of the foreign intermediary-company (from UAE) to export 20,000 tons of titanium-containing raw materials (ilmenite concentrate) from the Odesa Commercial Seaport. Based on the contracts concluded by the former executives, these raw materials were transferred to a little-known intermediary-company registered in offshore jurisdiction. The company's outstanding receivables to the UMCC amounted to UAH 400 million.

Therefore, by a decision of the NABU Director, in order to ensure the safety of material evidence, according to Part 9 Article 170 of the Criminal Procedure Code of Ukraine, almost 20 thousand tons of ilmenite concentrate were seized on May 22, 2020. Then, as required by law, SAPO filed an appeal to the High Anti-Corruption Court of Ukraine. On May 26, 2020, the Court made a decision for seizure the raw materials.

For reference: the NABU Detectives under the procedural guidance of SAPO started an investigation of the criminal proceeding as of the facts of abuse of authority of the officials of the PJSC UMCC in the export of titanium raw materials used foreign intermediary-companies in 2016.

In 2018, the indictment as of the officials of the SE was sent to court. However, the schemes of selling titanium raw materials at low prices through intermediary companies controlled by the former executive still operate. The investigation is in process.

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