A 295 million hryvnia scheme at Ukrgazvydobuvannya: The Bureau of Economic Investigations has released details
6 April 16:37
Detectives from the Main Detective Division of the Economic Security Bureau of Ukraine have notified two participants in a scheme to embezzle funds from JSC “Ukrgazvydobuvannya” that they are under suspicion. The losses amount to 295 million hryvnias, according to the Economic Security Bureau, as reported by "Komersant Ukrainian".
“The investigation established that officials of a private company, together with officials of a state-owned enterprise, organized a mechanism to inflate the cost of products during public procurement. To implement the scheme, they involved affiliated companies that submitted coordinated commercial proposals, creating the appearance of competition,” the statement reads.
According to the BEB, this ensured the victory of a predetermined company, while other “participants” acted merely as a formality or submitted non-competitive bids. Subsequently, the products were purchased from manufacturers at market prices; however, before delivery to the state-owned enterprise, they were routed through a chain of affiliated companies, artificially inflating the cost.
“The participants in the scheme converted the difference between the actual and declared value into cash and distributed it among themselves. As part of the scheme, 13 supply contracts were concluded. The amount of overpayment, exceeding the market value of the goods, totals 295 million UAH,” the Bureau reported.
BEB detectives notified two individuals of their status as suspects—a representative of the supplier company and an employee of one of the divisions of JSC “Ukrgazvydobuvannya”—under Part 5 of Article 27 and Part 5 of Article 191 of the Criminal Code of Ukraine (aiding and abetting the embezzlement and misappropriation of property on an especially large scale or committed by an organized group). The pre-trial investigation is ongoing. The BEB continues to identify other individuals involved and document all instances of unlawful activity.
The Office of the Prosecutor General is overseeing the criminal proceedings, while the Security Service of Ukraine is providing operational support.
