The Detectives of the National Anti-Corruption Bureau of Ukraine (NABU) under the procedural guidance of the Prosecutors of the Specialized Anti-Corruption Prosecutor`s Office (SAPO) completed a pre-trial investigation as of the facts of UAH 93 mln public funds embezzlement of “Ukrzaliznytsia” by Member of Parliament of Ukraine (MP). On April 21, 2020, the abovementioned MP and his defense had been granted with access to the materials of the investigation.
The investigation revealed that the MP jointly with other eight persons organized a corrupt scheme. As a result the Branch of the Center for the Provision of Production of the Public Joint-Stock Company (PJSC) “Ukrzaliznytsia” (Ukrainian railways) during December 2015 - March 2017 made the purchase of turntables at overpriced prices for the needs of the PJSC “Ukrzaliznytsia”.
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 signing a direct agreement between the companies, participants of the crime used the services of two intermediaries (the LLC "Argo", the LLC “Corporation KRT”). The beneficial owner of one of the companies is the abovementioned MP.
The cost of production had increased at each stage: “Dnipropetrovsk Plant” sold products to the LLC “Corporation KRT” for UAH 525.9 million, “Corporation KRT” sold it to LLC "Argo" for UAH 631.4 million (+ 20%), LLC "Argo" sold products to "Ukrzaliznytsia" for UAH 637.9 million (+ 1%). In fact, the products were delivered to "Ukrzaliznytsia" directly from the manufacturing plant.
As a result, the funds of the Branch of the Center for the Provision of Production of the PJSC “Ukrzaliznytsia” in the amount of about UAH 93.28 million were embezzled. The investigation revealed that participants of the corruption scheme divided illegally received funds among themselves.
The NABU Detectives started the pre-trial investigation of the abovementioned facts in May 2016 based on the own materials.
In January 2019, 7 persons were given notices of suspicion. In February 2019, the NABU Detectives detained and gave notice of suspicion to one more participant of the corruption scheme – former Deputy Head of the Branch of the Center for the Provision of Production of the PJSC “Ukrzaliznytsia”.
In October 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 MP. NABU and SAPO have reproduced all the details of the crime, established its organizers and collected evidence to bring them to justice.
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.