On October 31, 2019, Prosecutor General of Ukraine has signed a notice of suspicion to the Member of Parliament of Ukraine. The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor`s Office (SAPO) revealed that he is involved to 93.27 million UAH public funds embezzlement of the "Ukrzaliznytsia" (Ukrainian railways).
The notice of suspicion was served after the decision of the Verkhovna Rada of Ukraine on prosecution, detention and arrest of the Member of Parliament dated on October 31, 2019.
Actions of the suspect are qualified under Part 3 Article 27, Part 5 Article 191 of the Criminal Code of Ukraine. On November 2, 2019, the High Anti-Corruption Court chose a preventive measure for the suspect in a form of 100 million UAH bail.
The investigation revealed that during December 2015 - June 2016 the PJSC "Ukrzaliznytsia" carried out the purchase of turntables at overpriced prices.
According to the NABU Detectives, the Member of Parliament was the organizer of the corruption scheme. As a Head of the Verkhovna Rada Committee, he lobbied the allocation of funds of "Ukrzaliznytsia" for the purchase of turnouts and spare parts for railway tracks. Then, jointly with other participants of the crime, he organized the purchase of products at inflated prices from a controlled enterprise.
At the same time, the NABU Detectives and SAPO prosecutors believe, that the MP and other participants of the crime knew that currently there is only one producer of the necessary products for railways in Ukraine — PJSC "Dnipropetrovsk Railway Switch Plant".
The investigation revealed that instead of concluding a direct agreement between the companies, participants of the crime – officials of "Ukrzaliznytsia" and of the PJSC "Dnipropetrovsk Railway Switch”, secured a victory in the tender of a predetermined company - LLC "Argo".
The LLC "Argo" bought products from the “Dnipropetrovsk Plant” for the supply to "Ukrzaliznytsia". "Argo" supplied products for "Ukrzaliznytsia" through LLC “Corporation KRT”, whose beneficiary owner is the mentioned MP.
The cost of production increased at each stage: “Dnipropetrovsk Plant” sold products to the LLC “Corporation KRT” for 525.9 million UAH, “Corporation KRT” sold it to LLC "Argo" for 631.4 million UAH (+ 20%), LLC "Argo" sold products to "Ukrzaliznytsia" for 637.9 million UAH (+ 1%). In fact, the products were delivered to "Ukrzaliznytsia" directly from the manufacturing plant.
According to the expert's opinion, "Ukrzaliznytsia" suffered losses in the amount of 93.27 million UAH. The investigation revealed that participants of the corruption scheme divided illegally received funds among themselves.
On October 30, 2019, the Committee on the Regulations, Parliamentary Ethics and Organization of the Verkhovna Rada of Ukraine granted the petition of Prosecutor General of Ukraine to prosecute, detain and arrest of the Member of Parliament.
The NABU Detectives have been conducting a pre-trial investigation as of the abovementioned facts since May 2016. The investigation as of the actions of eight participants of the scheme was completed. The defense and the suspects had been granted with access to the documents of the pre-trial investigation.
According to Article 62 of the Constitution of Ukraine a person is considered not-guilty in commission of crime and cannot be a subject to criminal punishment, until he or she is found guilty by the court.