MoD ’golden eggs’: NABU completes probe into embezzlement case exceeding ₴700 million. SCHEME DETAILS
Anti-corruption bodies have completed the investigation into the embezzlement of state funds during the Ukrainian Defense Ministry’s food procurement for the Armed Forces.
This was reported by the press service of the NABU and the SAPO, Censor.NET reports.
Once the defense reviews the case materials, it will be sent to court.
NABU and SAPO recalled that in 2022–2023, the Defense Ministry procured food kits for the military according to a catalog containing 409 items.
Investigators established that the price of the kits was calculated based on the average cost of goods. This allowed suppliers to manipulate prices by inflating those of commonly used products while underpricing less popular or seasonal ones.
Details of the "eggs for 17 hryvnias" scheme
"At first glance, there seemed to be no violations, and the price of the food kit did not change. However, potatoes supplied by the thousands of tons were sold at triple the price, while seasonal berries and fruit, which were almost never ordered, cost mere pennies," NABU noted.
At the same time, 50% of the total supply value under the contract (about ₴1.2 billion) accounted for just 40 out of 409 food items, with inflated prices.
By contrast, 27 products priced artificially low were supplied to the Armed Forces for only ₴3.6 million in total, representing just 0.14% of the value of such goods.
According to investigators, suppliers also manipulated the catalog by exploiting seasonality. For instance, the catalog listed cherries at just ₴8 per kilogram, strawberries at ₴10 per kilogram, and blackcurrants at ₴10 per kilogram.
"At first glance, the Defense Ministry appeared to be making cost-effective purchases. But under approved regulations, such seasonal products could not be ordered by military units during the contract period, since the contracts were signed after the season when these products could be supplied."
Meanwhile, a Defense Ministry official who signed the contracts "failed to notice" the price manipulations.
As a result, between August and December 2022, two supplying companies illegally obtained more than ₴733 million from the state budget.
After the launch of the pre-trial investigation in January 2023 and media reports, including revelations about eggs purchased at ₴17 apiece, the companies lowered prices on 11 of the most in-demand products. This saved ₴788 million from being embezzled, NABU added.
Who is involved in the case of "eggs for UAH 17"?
The following persons are involved in the case:
- former head of the Department of the Ministry of Defence of Ukraine - Bohdan Khmelnytskyi (under a preventive measure - night house arrest);
- the owner of related supplier companies - Tetiana Hlyniana (under arrest in absentia);
- two directors of the supplier companies;
- Individuals: Larysa Shvets, head of OK Land Food LLC (bail of 1.2 million posted), Valerii Melesh, head of Active Company LLC (bail of 1.2 million posted), and Mykola Deshpetko, former director of Premium Company LLC (bail of 5 million posted).
They were notified of being suspected under the following articles of the Criminal Code of Ukraine: Part 5 of Article 191 (embezzlement), Part 2 of Article 15, Part 5 of Article 191 (attempted embezzlement), Part 3 of Article 209 (legalisation).
The NABU and the SAPO are taking measures to identify other persons involved, including officials of the Ministry of Defence.
