"Yuzhny Port" case: materials disclosed

NABU and SAPO have completed an investigation into a corruption scheme causing the state-owned Sea Commercial Port "Yuzhny" to suffer more than UAH 60 million in losses. On Oct. 12-13, 2021, the case materials were disclosed to 10 suspects.

They are:

• the first deputy director of Yuzhny Port (Part 5 Article 191, Part 2 Article 364 of the Criminal Code of Ukraine);
• the ex-deputy director of Yuzhny Port (Part 5 Article 191, Part 2 Article 364 of the Criminal Code of Ukraine);
• three former directors of LLCs (Part 5 Article 191, Part 2 Article 364 of the Criminal Code of Ukraine);
• three more former directors of LLCs (Part 5 Article 191 of the Criminal Code of Ukraine);
• two employees of LLCs (Part 5 Article 191 of the Criminal Code of Ukraine).

 As established, the first deputy director of Yuzhny Port, the company's former deputy director, heads of private companies, and other persons came up with a scheme in 2017-2018 to purchase goods from a group of companies under their control. As a result, the state enterprise suffered losses amounting to UAH 47.5 million.

The officials conspired and recruited a number of other persons to implement the scheme, which allowed them to fully control the entire procurement process – starting from forming a need and preparing tender documents to control the competitive environment – to eventually ensuring the victory by controlled companies. In total, the investigation has recorded 29 such tenders.

On Oct. 27, 2020, the officials were exposed.

NABU and SAPO have also established new facts of corruption at the enterprise. In 2017-2019, its first deputy director, the former deputy director, and several other persons organized the purchase of locomotives. The victory in the tender was secured for a controlled company. According to the investigation, the locomotives were defective and did not belong to the seller, as required by the terms of the tender and the contract. Nevertheless, Yuzhny Port paid an advance of over UAH 13 million to the controlled company.

Subsequently, these locomotives were delivered to Yuzhny Port. However, the commission, authorized to make a decision on taking them on the balance sheet, refused to do so due to their malfunction. This decision was preceded by the active investigative actions of NABU.

The controlled company did not return the advance. As a result, the enterprise suffered 13 million in losses. The actions of those involved in this episode fall under Part 2 Article 364 of the Criminal Code of Ukraine. The total amount of losses suffered by the state enterprise in both episodes exceeds UAH 60 million.

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.