NABU, SAPO reveal UAH 11.4 million tool procurement scheme

On 26 Feb. 2024, NABU and SAPO exposed an organized group, consisting of JSC "Ukrzaliznytsia" officials and entrepreneurs, who embezzled over UAH 11 million from the company.

As established, in 2018, the group's leader, an entrepreneur, decided to gain control over the commercial and financial flows of Ukrzaliznytsia with the aim of misappropriating the company's funds. To achieve this, he reached out to long-time acquaintances among government representatives and, with their support, managed to appoint members of the group to key positions at Ukrzaliznytsia.

Thus, from 2018 to 2021, Ukrzaliznytsia officials, following the instructions of the group leader, ensured the victory of a controlled LLC in a tender for the purchase of pneumatic tools. Subsequently, this company supplied products to Ukrzaliznytsia branches at inflated prices. The overpayment totaled UAH 11.4 million, which the organized group seized and used at its owns discretion.

In total, there are 9 suspects so far:
- two leaders of the organized group (Part 3 Article 27 and Part 5 Article 191 of the Criminal Code of Ukraine);
- six Ukrzaliznytsia officials (Part 5 Article 27 and Part 5 Article 191 of the Criminal Code of Ukraine);
- the LLC's beneficiary (Part 3 Article 27 and Part 5 Article 191 of the Criminal Code of Ukraine).

The leader of the organized group has been detained pursuant to Article 208 of the Criminal Procedure Code. Actions are under way to identify other episodes of group's criminal activity.