UAH 81 million misappropriation of the National Guard: new suspects and updated facts

On May 4, 2020, the Detectives of the National Anti-Corruption Bureau of Ukraine (NABU) under the procedural guidance of the Specialized Anti-Corruption Prosecutor`s Office (SAPO) gave notices of suspicion to the Ex-Commander of the National Guard of Ukraine (NGU), a former Member of Parliament (MP) (ex-beneficial owner) and a number of officials of real estate developer company. They are suspected of misappropriation of the NGU property in amount of UAH 81.64 million.

The day before, two more participants of this corruption scheme were found.

On April 30, 2020, the notices of suspicion were given to following persons: the ex-Deputy of the Head of the Main Apartment-Maintenance Department and the ex-Deputy of the Head of the Unit of Centralized Calculations, Accounting and Reporting of Financial and Economic of the Main Apartment-Maintenance Department of the Armed Forces of Ukraine (AFU).

Thus, the number of suspects in the misappropriation of UAH 81.64 million has increased up to eight. The NABU Detectives revealed new episodes of illegal activities of those persons.

The investigation collected evidence as of the facts of receiving of an improper advantage in the amount of USD 125 thousand by the Ex-Commander of the NGU for acting in the interests of the construction company. Later he pided those funds with the ex-Deputy of the Head of the Main Apartment-Maintenance Department of the AFU (he received USD 25 thousand).

In addition, the investigation revealed that the official of NGU received an improper advantage from the former MP and a number of executives of the real estate developer company — an apartment with a total area of 76 sq.m. (a market value of UAH 1.82 million).

That improper advantage was provided under the guise of concluding an agreement on the alleged purchase by the close relative of the Ex-Commander of the NGU at a special price in the amount of UAH 592.8 thousand only (UAH 7,800/ sq.m.).

In order to hide that fact and legalize the origin of real estate, the beneficiaries and executives of the real estate developer company prepared and signed fictitious agreements and letters.

The NABU Detectives also revealed that the former beneficial owner (ex-MP) and other officials of the real estate developer company have used forged official documents (evaluation reports commissioned by “Ukrbud Development” LLC) to exchange the NGU apartments in the center building to real estate on the outskirts of Kyiv, as well as in order to further cover up a particularly serious crime.

Based on the evidence obtained, the notices of suspicion were given to the ex-MP and officials of the real estate developer company. Therefore, the range of suspects as follows:

• ex-MP, beneficial owner of the “Ukrbud Development” LLC —  Part 5 Article 191, Part 4 Article 369, Part 3 Article 209, Part 3 Art. 28 Part 3 Article 358, Part 3 Article 28 Part 4 Article 358 of Criminal Code of Ukraine;
• Executive Director of the “Ukrbud Development” LLC — Part 5 Article 191, Part 4 Article 369, Part 3 Article 209, Part 3 Article 28 Part 3 Article 358, Part 3 Article 28 Part 4 Article 358 of Criminal Code of Ukraine;
• Director General of the “Ukrbud Development” LLC —  Part 5 Article 191, Part 4 Article 369, Part 3 Article 209, Part 3 Article 28 Part 3 Article 358, Part 3 Article 28 Part 3 Article 358 of Criminal Code of Ukraine;
• Deputy Director General for Legal Affairs of the “Ukrbud Development” LLC — Part 5 Article 191, Part 3 Article 209, Part 3 Article 28 Part 3 Article 358, Part 3 Article 28 Part 4 Article 358 of Criminal code of Ukraine;
• Commander of the NGU — Part 5 Article 191, Part 4 Article 368,  Part 5 Article 27 Part 2 Article 28 Part 4 Article 358 of Criminal code of Ukraine;
• Head of the Main Apartment-Maintenance Department of the AFU — Part 5 Article 27 Part 5 Article 191, Part 5 Article 27 Part 4 Article 368 КК України;
• Deputy of the Head of the Unit of the Centralized Calculations, Accounting and Reporting of Financial and Economic of the Main Apartment-Maintenance Department of the AFU — Part 5 Article 191, Part 4 Article 369 of Criminal Code of Ukraine;
• real estate appraiser  — Part 5 Article 27, Part 5 Article 191 of Criminal code of Ukraine;

The investigation revealed that in 2000s, the Internal Troops of Ukraine (merged with NGU) and the real estate developer signed an agreement according to which a residential complex with built-in parking and non-residential premises would be constructed on the territory of the former military unit. In exchange for a land plot of about 1 hectare in Kyiv city center, the NGU was offered 50 apartments and 30 parking lots in the residential complex.

However later, in 2016-2017, the parties signed additional agreements, according to which the NGU rejected apartments and parking lots in Pechersk District in exchange for 65 apartments in a residential complex of the same real estate developer company in Kyiv outskirts (near Chervonyj Khutir metro station). According to the examinations, the cost of those apartments is UAH 81 635 448 less than the first one to be received by the NGU according to initial agreement.

The NABU Detectives carry out the investigation of those facts from December 2017 based on the materials of BIHUS.INFO journalist investigation program.

On April 29, 2020, the Appeal Chamber of the High Anti-Corruption Court (HAAC) made the decision to recover to the State a part of the bail in the amount of UAH 536.8 thousand paid by the Executive Director of the real estate developer company involved in the corruption scheme. The court also increased the size of bail to the suspect from UAH 1.538 million to UAH 3 million.

On the same day, the Appeal Chamber of the HAAC made the decision on recovering to the State UAH 30 million from the ex-MP, suspected of organizing a scheme of misappropriation of the NGU property. The court also determined a new amount of bail – UAH 100 million. The decisions are final, not subject to appeal.

According to Part 1 Article 62 of the Constitution of Ukraine a person is considered not-guilty in commission of a crime and cannot be a subject to criminal punishment, until he or she is found guilty by the court.