Former Defense Ministry officials to be tried for UAH 2.4 billion in damages: SBI transfers the case

30 September 16:30

Corruption scandals in defense procurement regularly become the subject of attention of law enforcement and society. The story of “eggs for 17 UAH”, the supply of low-quality first aid kits or equipment worth billions showed the scale of the problem. This was reported by the press service of the State Bureau of Investigation, "Komersant Ukrainian" reports.

Now the focus is on two former officials of the Ministry of Defense, whose actions led to billions of dollars in losses for the state.

What happened


The State Bureau of Investigation reported that indictments against two former officials of the Defense Ministry’s Public Procurement Department have been sent to court.

According to the investigation, in 2023, they signed 95 contracts for the supply of lubricants and petroleum products for special-purpose equipment worth more than UAH 19 billion.

What are the violations?


The officials, in violation of Cabinet of Ministers Resolution No. 178 of March 2, 2022, and Article 195 of the Tax Code, included VAT in the amount of over UAH 2.4 billion in the value of the contracts. This resulted in excessive state expenditures.

What has been reimbursed so far


During the course of the investigation, the Ministry of Defense managed to compensate most of the losses – over UAH 2.2 billion.

Classification of crimes and punishment

  • one of the suspects is accused of negligence in military service (punishment – up to 8 years in prison);
  • the other is charged with negligence and forgery of official documents.

The Specialized Defense Prosecutor’s Office is providing procedural guidance.

Wider context


Scandals surrounding defense procurement are not new:

  • the case of businessman Ihor Hrynkevych, who supplied low-quality equipment worth UAH 1.16 billion;
  • embezzlement of more than UAH 1 billion for food for the army;
  • inflated food prices (“eggs for 17 UAH”), which caused a public outcry;
  • poor quality first aid kits, beds and fuel schemes for military units.

All of these cases have reinforced the public demand for transparency and control over defense spending, which is at a record high during the war.

The court will decide whether the former officials will be held accountable. For the authorities, the case will be another test of their ability to effectively fight corruption even in the most sensitive area, the supply of the army.

Марина Максенко
Editor

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