Ukraine's defence exposed: The 733 million hryvnia scandal
Scandal in the Ukrainian Ministry of Defence. A group of food suppliers and ministry officials profited from deliveries intended for soldiers fighting on the front lines. They were accused of embezzling 733 million hryvnias. How was this possible? They sold selected products at grossly inflated prices.
What do you need to know?
- Who was charged? The former head of a department within the Ministry of Defence of Ukraine, along with the owner of food supply companies and their managers, were charged.
- What was the operation scheme? Prices of products were manipulated; some prices were inflated several times over.
- Investigation outcome? Further budget losses totalling 788 million hryvnias were prevented.
What mechanisms enabled the abuses?
An investigation conducted by the National Anti-Corruption Bureau of Ukraine (NABU) and the Special Anti-Corruption Prosecutor's Office (SAP) revealed that in 2022-2023, food deliveries for the Ukrainian military were conducted through the purchase of so-called food kits.
These kits contained 409 items, of which only 10 percent were actually delivered to the front lines. "This allowed suppliers to manipulate prices: inflating them on popular products and deflating them on those that were not delivered," explains the investigative report. Officially, everything matched—the package price did not change.
What were the consequences for the budget?
As a result of this fraud, two companies controlled by one owner gained over 733 million hryvnias in extraordinary profits from August to December 2022. Some of these funds were siphoned off as dividends and as financial aid for related companies. "This money could have been used to purchase hotels in Croatia and other properties," investigators reported.
Investigators claim the crime was possible because a Ministry of Defence official "did not notice" the non-standard prices in the catalog during contract signings.
What actions were taken after the scandal was revealed?
After the investigation began in January 2023 and the case was reported in the media, including information about purchasing eggs for 17 hryvnias each (an egg could be bought in the store for a third of that price, editor's note), participants in this scheme reduced the prices of 11 most sought-after products. "This prevented the siphoning of the budget by an amount of 788 million hryvnias," the investigators emphasize.
Source: pravda.com.ua
