Ukrainian defence scandal: Officials embezzle millions in funds
Scandal in the Ukrainian Ministry of Defence. A group of several food suppliers and ministry officials profited from deliveries for soldiers fighting on the front. They were accused of embezzling ₴733 million. How was this possible? They sold certain products at grossly inflated prices.
What do you need to know?
- Who was charged? The former head of the department at the Ministry of Defence of Ukraine, the owner of food supply companies, and their managers were charged in this case.
- What was the operation scheme? Prices of products were manipulated: some prices were inflated several times.
- Investigation outcome? Further budget losses amounting to ₴788 million 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 executed through the purchase of so-called food kits.
These kits contained 409 items, of which only 10 percent were actually delivered to the front. "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 in extraordinary profits from August to December 2022. Part of these funds was siphoned off as dividends and 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 catalogue during contract signings.
What actions were taken after the scandal was revealed?
After the investigation started in January 2023 and the case was publicised in the media, including information about purchasing eggs for ₴17 each (an egg could be bought in the store for three times less, editor's note), participants in this scheme lowered the prices of the 11 most sought-after products. "This prevented the siphoning of the budget by an amount of ₴788 million," the investigators emphasise.
Source: pravda.com.ua
