UKRAINE UNCOVERS ATTEMPT TO EMBEZZLE NEARLY $40M IN ARMS PURCHASES

Sun 28 January 2024:

Ukrainian authorities unearthed embezzlement of 1.5 billion Ukrainian hryvnia (approximately $39.6 million) in the arms purchase and identified some serving and retired high-ranking officials, including those from the Defense Ministry, as being involved in the fraudulent ammunition procurement deal, according to the country’s security service.

One of the suspects was apprehended by the Security Service of Ukraine (SBU) while attempting to flee the country, said an official statement issued by SBU late Saturday.

“The SBU, with the assistance of the Ministry of Defense, exposed officials of the Ministry of Defense and managers of Lviv Arsenal, who stole almost 1.5 billion UAH for the purchase of shells,” the statement said.

The investigation identified former and current high-ranking Ukrainian Defense Ministry officials, as well as the heads of affiliated companies, who signed a contract with the Lviv Arsenal company to purchase 100,000 mortar rounds for the Armed Forces, it said.

The Defense Ministry transferred the entire amount stipulated in the contract signed in Aug. 2022 to the company’s accounts, the statement said, adding that a portion of the funds was then transferred to “the balance sheet of a foreign commercial structure that was supposed to deliver the ordered ammunition to Ukraine.”

“However, it did not send a single artillery shell to our country, and took the received funds into the shadows, transferring them to the accounts of another affiliated structure in the Balkans,” the statement said.

Five people involved in the scheme have been identified as suspects in the entire fraudulent scheme and will be charged under the Criminal Code, it said, adding that one of the suspects was detained by the SBU while attempting to leave Ukraine.

It said those involved could face up to 12 years in prison, with property confiscation.

Since Jan. 2023, several Ukrainian officials have either been dismissed or resigned as President Volodymyr Zelenskyy launched a broad anti-corruption campaign in the country.

A crackdown on corruption is critical if the country hopes to advance its application to join the 27-member European Union, which began membership talks with Kyiv last month.

Critics say Ukraine has long suffered from widespread corruption, but Russia’s “special military operation” is said to have overshadowed the government’s efforts to stamp out graft.

-Source: AA

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