NABU, SAPO expose UAH 15 million food procurement scheme

On Feb. 13, 2024, NABU and SAPO exposed misappropriation of UAH 15.2 million during the Kharkiv Regional Military Administration's procurement of food supplies for humanitarian needs.

According to the investigation, in March 2022, the chief of staff of the Kharkiv Regional Military Administration (RMA) and the director of a private company entered into a trilateral agreement between the Kharkiv RMA, Ukrzaliznytsia JSC, and the mentioned LLC for the supply of food products. These products were purchased under a state program for free distribution to the population in the frontline regions and in the de-occupied territories.

Subsequently, a Kharkiv RMA official, in collusion with the LLC's executives, forged documents to claim the receipt of purportedly 235 tons of food from the supplier, after which over UAH 15 million was transferred to its accounts by Ukrzaliznytsia. However, the supplier failed to deliver the products.

In December 2022, the scheme participants became aware of the ongoing criminal proceedings. In an attempt to evade the exposure, the official of the Kharkiv RMA decided to conceal the failure to supply the products by claiming  that they had been put away for storage. Eventually, the products were delivered by the administration and the incurred damage was effectively reimbursed.

The suspects are:
- the chief of staff of the Kharkiv Regional Military Administration;
- the director of the LLC and her deputy;
- the director of the regional office of the LLC.

The actions of the suspects fall under Part 5 Art. 191, Part 1 of Art. 366 of the Criminal Code of Ukraine.