NABU, SAPO suspect organizer of UAH 12 million Ukrzaliznytsia scheme

NABU and SAPO have served a suspicion notice on the organizer of the scheme to embezzle the Ukrzaliznytsia property. Thus, there are four suspects in the case involving UAH 11.8 million losses to the state-owned company. The other three suspects*, the deputy head of Ukrzaliznytsia branch, the head of Ukrzaliznytsia Logistics Department and the head of a private company, were notified of suspicion in October 2021.

Their actions fall under Part 5 of Art. 191 of the Criminal Code of Ukraine.

In 2018, one of the branches of Ukrzaliznytsia PJSC held a tender for the purchase of coal to heat passenger trains. According to the investigation, the suspected head of the branch, as chairman of the tender committee, together with the head of Ukrzaliznytsia logistics department, ensured the victory of a predetermined supplier leaving other companies out of the competition. The winner eventually supplied coal at inflated prices resulting in UAH 11.8 million in losses.

An expert check established that the market price of one ton of coal as of the contract date was UAH 3,770, while Ukrzaliznytsia PJSC paid UAH 4,563 per ton.

An internal audit at Ukrzaliznytsia also confirmed the above facts and the inflated cost of coal, which significantly contributed to the pre-trial investigation.

*positions at the time of committing the crime