NABU, SAPO suspect ex-infrastructure minister of causing over USD 30 million in losses

On Feb. 22, 2023, NABU and SAPO notified the ex-minister of infrastructure and his first deputy of suspicion of abuses, which caused the state to sustain losses exceeding USD 30 million. Their actions fall under Part 2 Art. 364 of the Criminal Code of Ukraine.

Since the whereabouts of the ex-deputy minister remains unknown, he was notified of suspicion under Art. 135, Art. 278 of the Criminal Procedure Code of Ukraine.

As established, in July 2015, the then minister together with his deputy (at that time also the head of the Tariff Council at the Ministry of Infrastructure) ensured the adoption of an order, which provided for the collection of shipping fees in the Pivdennyi seaport not only by the Ukrainian Sea Ports Authority (USPA) but also by private companies (at the 50:50 ratio). Whereas, according to the law, the collection of such fees is the exclusive prerogative of the public enterprise as a user of the water area of the port, which belongs to the state.

The investigation discovered that the order was passed without proper economic reasoning and contrary to the comments of the Department of Economy and Finance of the Ministry of Infrastructure and USPA. Moreover, one of the beneficial owners of the mentioned private companies turned out to be a person whom NABU and SAPO suspect of corruption in another case. At present, he is wanted and under sanctions of the NSDC.

NABU detectives started investigating abuses at the Ministry of Infrastructure in the fall of 2019, for which they demanded materials from the SSU and the National Police, who, in turn, tried to close the relevant proceedings. Since then, NABU has repeatedly appealed to the Cabinet of Ministers, the Ministry of Justice, the Ministry of Infrastructure, and USPA to stop the criminal scheme. However, the Bureau's arguments were ignored, the illegal order remained valid, and not a single claim for the return of the fees unjustly received by private companies was filed.

According to the results of the examination, during 2017-2021 alone, the illegal order caused the state to lose more than USD 30 million in potential revenue. NABU is delving into the operation of the scheme during subsequent periods as well.