Defence Ministry official detained for embezzling US$40 million during munitions procurement – photo
The head of one of the Ukrainian Defence Ministry’s main directorates has been detained in Kyiv for his involvement in the embezzlement of UAH 1.5 billion (about US$40 million) while purchasing artillery shells for the Armed Forces.
Source: Prosecutor General's Office; Security Service of Ukraine (SSU); Ministry of Defence
Quote: "According to the investigation, in December last year, a Defence Ministry official signed an agreement with a special export company to purchase a wholesale batch of artillery shells for Ukrainian defenders.
But no public money was transferred to the special exporter’s accounts at that time.
The Defence Ministry’s newly created Defence Procurement Agency subsequently signed a more favourable contract with the same manufacturer for the supply of the same artillery shells."
Details: Under the new contract, the ammunition was to be purchased directly from the manufacturer, which significantly improved the delivery time and reduced the cost of the products.
However, despite this contract, the suspect extended the previous agreement with the special export company.
After the agreement was extended, almost UAH 1.5 billion (about US$40 million) was transferred to the accounts of an affiliated foreign intermediary firm. This was 30% more than the cost of the products under the direct contract with the manufacturer.
During searches at the suspect's workplace and place of residence, the police found documents confirming illegal activity.
Quote: "Within the framework of the criminal proceedings initiated by SSU investigators under Article 114-1.2 of the Criminal Code of Ukraine (obstruction of the lawful activities of the Armed Forces of Ukraine and other military formations), the matter of serving the official with a notice of suspicion is being decided.
The suspect has been suspended from duty. In addition, the Ministry of Defence is taking measures to recover the misappropriated funds, which amount to nearly UAH 1.5 billion, for the budget of Ukraine.
The investigation is ongoing. The offender faces up to 15 years in prison."
Details: Ukraine’s Defence Ministry said searches began this morning at the office premises of a company named Progres and the Main Directorate of the Defence Ministry. All ministry employees who were involved in this contract will undergo a polygraph test.
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