"Grain scheme": ex-leadership of state enterprises caught on massive funds embezzlement

The National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO) have exposed nine persons who embezzled UAH 157 million belonging to state-owned grain companies. On Dec. 10, 2021, they were notified of suspicion of committing crimes under Part 5 Art. 191 and Part 2 Art. 364 of the Criminal Code of Ukraine.

 

The investigation found that during 2011-2017, the heads of three state-owned bread companies colluded with the executives of related private companies to impose an artificial debt on the state enterprises. The illegally obtained funds were transferred through a complex string of transactions and assignments to companies controlled by the scheme participants, including abroad.

The NABU Detectives have recorded six episodes of such corrupt actions. In addition, the scheme participants grabbed the SE's trademark almost for free, while experts say its cost makes UAH 20 million.

NABU and SAPO are now identifying other participants in the scheme and continue to search for fresh evidence.



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.

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