Security Service of Ukraine and Anti-Corruption Bureau expose former defence conglomerate official in US$25m embezzlement scheme
Pravda Ukraine
Counterintelligence from the Security Service of Ukraine (SSU) and the National Anti-Corruption Bureau (NABU) have uncovered a scheme involving the embezzlement of budget funds at a former state enterprise under the Ukroboronprom defence conglomerate. The suspects, currently hiding abroad, face up to 12 years in prison.
Source: SSU press service
Details: The SSU reported that the embezzlement occurred between 2016 and 2019.
Quote: “Following complex measures, four former officials of the defence company were found to have stolen over UAH 107 million (approximately US$25.6 million) in state funds through military export contracts.”
More details: The suspects reportedly used a foreign-registered company to carry out their scheme.
While holding senior positions, they signed agreements with the company for handling negotiations and contract execution with foreign arms buyers. However, all dealings with international clients were actually managed by the Ukrainian defence enterprise itself.
The foreign company received state funds despite performing no actual work, with its activities existing solely “on paper”. These funds were then transferred to fake firms and divided among the scheme’s participants.
The SSU revealed that four former officials and the head of the affiliated company, who are currently abroad, have been charged in absentia under several articles of Ukraine’s Criminal Code.
If convicted, they face up to 12 years in prison and confiscation of their assets.
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