Head of one of Defence Ministry’s main directorates detained for embezzling US$40 million during purchase of shells
Pravda Ukraine
The head of one of the Ukrainian Defence Ministry’s main directorates was detained in Kyiv for embezzling UAH 1.5 billion (equiv. to US$40.02 million) during the purchase of 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, an official of the Defence Ministry signed an agreement with a special export company to purchase a wholesale batch of artillery shells for Ukrainian defenders.
But the budget funds were not transferred to the accounts of the special exporter.
The newly created Defence Procurement Agency of the Defence Ministry subsequently signed a more favourable contract for the supply of the same artillery shells with the same manufacturer.”
Details: The new contract provided for the purchase of ammunition directly from the manufacturer, which significantly reduced the delivery time and cost of the products.
However, despite the contract, the defendant extended the previous agreement with the special exporting company.
After the extension, almost UAH 1.5 billion (equiv. to US$40.02 million) was transferred to the accounts of an affiliated foreign intermediary firm. This amount exceeded the value of the products under the direct contract with the manufacturer by 30%.
During searches at the suspect’s workplace and place of residence, the police found documents confirming illegal activity.
Quote: “In the framework of the criminal proceedings initiated by the SSU investigators under Article 114-1.2 (obstruction of the lawful activities of the Armed Forces of Ukraine and other military formations) of the Criminal Code of Ukraine, the issue of serving the official with a notice of suspicion is being decided.
The offender has been suspended from duty. In addition, the Ministry of Defence is taking measures to return the misappropriated funds in the size of almost UAH 1.5 billion (equiv. to US$40.02 million) to the budget of Ukraine.
The investigation is ongoing. The offender faces up to 15 years in prison.”
Details: Ukraine’s Defence Ministry Ministry specified that searches began this morning in the office premises of Progres company and the Main Directorate of the Ukrainian MoD. All employees of the ministry who were attached to this contract will undergo a polygraph test.
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