SBI uncovers large-scale corruption scheme in procurement for the Armed Forces
6 February 2025 12:39
Employees of the State Bureau of Investigation (SBI) have exposed a large-scale corruption scheme in the logistics system of the Armed Forces of Ukraine. Officials of the Housing and Maintenance Department (HMD) in Luhansk and their accomplices were served with a notice of suspicion of embezzlement of more than UAH 101 million during the procurement of fuel wood for military purposes. This was reported by "Komersant Ukrainian" with reference to the State Bureau of Investigation.
The scheme of embezzlement of budget funds
The organizer of the fraud was the former head of the Luhansk Municipal Electricity Department. He involved two current officials of the unit stationed in Dnipro, a former employee of the CEA and a private entrepreneur in the illegal activity. The scheme participants purchased fuel wood at a significantly inflated cost without open bidding, using contracts with indirect suppliers.
To conduct financial transactions, the criminals used accounts of individual entrepreneurs that were under their full control. According to the investigation, 35 such individual entrepreneurs were involved in the scheme.
Investigation and evidence
SBI officers established 47 facts of procurement at inflated prices, which caused losses to the state in the amount of over UAH 101 million.
Law enforcement officers conducted 28 searches at the suspects’ premises, seized documents, computer equipment and mobile phones that may serve as evidence in court.
Legal liability
The five members of the criminal group were served a notice of suspicion under Part 3 of Art. 27, Part 5 of Art. 27, Part 5 of Art. 191 of the Criminal Code of Ukraine – misappropriation of property by abuse of office, committed repeatedly, under martial law, on a particularly large scale and as part of an organized group.
The sanction of the article provides for imprisonment for up to 12 years with confiscation of property.
