Ukrainian defense department implicated in $40m corruption scheme, diverting ammunition funds
The SBU revealed the theft of 1.5 billion hryvnia on Saturday evening and stated that the culprits had been identified. These are believed to be defense department employees and an arms company's officials.
Jan 28, 2024 | updated: 4:43 AM EST, March 7, 2024
Large-scale theft of hryvnia in Ukraine
The investigators detail that in August 2022, Ukrainian Ministry of National Defense representatives signed a contract with the weaponry supplier Lvivskyj Arsenal to purchase ammunition. Once the department successfully transferred the sum required for the transaction, the company passed on a fraction of the money to a foreign organization expected to supply Ukraine with ammunition.
This money was designated for the acquisition of 100,000 units of mortar ammunition for the Ukrainian army. However, the company did not dispatch a single shell. The received funds were diverted to the accounts of an affiliated structure located in the Balkans, reports the SBU. The remaining money from the Ministry of Defense was directed into the accounts of a Ukrainian company with a bank based in Kyiv.
Five individuals possibly involved in this corruption scheme have been identified and charged on suspicion of committing a crime. One of the suspects was apprehended while attempting to exit Ukraine.
The accused might face a sentence of up to twelve years in prison and confiscation of their property. The purloined money has been retrieved, and steps are being taken to return it to the state budget.
Corruption in the military - an ongoing problem
The subject of corruption within the Ukrainian military is attracting increasing public attention. January 2023 reports by the portal zn.ua reveal that the Ukrainian Ministry of Defense purchases food for its soldiers at prices higher than typical grocery store costs. In several instances, the retail prices were even two to three times more. The department, in response, acknowledged that the portal's publication contains "evidence of manipulation" but simultaneously declared an examination of the issue.
As time passed, additional reports about infractions started surfacing. Besides irregularities in order placements for the army, fresh allegations regarding bribery in medical commissions have arisen. Consequently, the Minister of Defense, Oleksiy Reznikov, was discharged due to these events.
