National Police exposes scheme of misappropriation of UAH 15.5 million in defence procurement

National Police exposes scheme of misappropriation of UAH 15.5 million in procurement for repair of military equipment

The National Police reported the exposure of a criminal group that seized UAH 15.5 million, The funds are intended for the purchase of spare parts and repair of military equipment.

How the scheme worked

The investigation established that 2024 the head of a commercial enterprise organised a corruption scheme to ensure the «victory» of a controlled company in procurement for a military unit.

Organiser:

• artificially inflated the cost of services and spare parts;

• created the illusion of competition, by involving several controlled legal entities;

• ensured the submission of pre-existing unfavourable price offers, The aim is to make the main company look the best;

• convinced the Armed Forces of Ukraine of the «profitability» of this particular proposal.

Thus, the budget suffered losses in the amount of 15.5 million UAH.

Suspicion and liability

The organiser of the scheme and his accomplice have already a notice of suspicion has been served.
They are charged:

• misappropriation of funds on an especially large scale,

• conspiracy of a group of persons,

• use of controlled companies to participate in procurement without real competition.

The suspects are threatened with up to 12 years' imprisonment з confiscation of property.

Context.

The defence procurement sector remains one of the most sensitive in times of war. Law enforcement agencies are stepping up control over prices and transparency of procedures, as such criminal schemes directly affect the supply of the army.