On Sept. 9, 2021, NABU and SAPO notified the general director of Pavlograd Chemical Plant Research and Production Association State Enterprise (Pavlograd Chemical Plant) of suspicion of abuse of office. His actions resulted in UAH 43.3 million damages to the SE. The actions of the official fall under Part 2 Art. 364 of the Criminal Code of Ukraine.
As established, the suspect jointly with SE's commercial director and the head of two private enterprises came up with a scheme that stipulated exclusive sale of products manufactured by the SE through a number of controlled companies.
These companies then sold products at prices 30% higher than those set by Pavlograd Chemical Plant. The supply of products (explosives) was carried out directly from the manufacturer (Pavlograd Chemical Plant) to consumers (mining enterprises) without any participation of the controlled companies.
If customers asked Pavlograd Chemical Plant to conclude direct supply contracts, the SE's officials denied the request and recommended that they contact the controlled companies or set even higher prices. This is the second episode of corruption at this SE exposed by NABU and SAPO. In 2017, an indictment against its commercial director accused of causing UAH 7 million damages to Pavlograd Chemical Plant was sent to court.
NABU continued investigating other periods of scheme’s implementation and found out new episodes.
The investigation has revealed that not only the SE’s general director was involved in the fraud but also its commercial director and the director of the controlled companies. In August 2021, NABU and SAPO notified both persons of suspicion.
Detectives are investigating other facts of abuse of office by Pavlograd Chemical Plant officials.
According to Article 62 of the Constitution of Ukraine, a person is considered non-guilty in the commission of a crime and cannot be subject to criminal punishment until he or she is found guilty by court.