Nearly UAH 3bn in losses: SBI uncovers large-scale scheme in supply of unfit mines for Ukraine’s Armed Forces. VIDEO
Under prosecutors’ procedural supervision, a pre-trial investigation is being conducted into alleged misappropriation of budget funds on an especially large scale, laundering of criminal proceeds, and the creation of and participation in a criminal organization.
As Censor.NET reported, according to investigators, a private company signed five state contracts with the Defense Ministry’s Department of Military-Technical Policy, the Defense Procurement Agency, and the Logistics Forces Command of the Armed Forces of Ukraine to supply mines of various types. Some of the products were delivered, but according to forensic examination findings, the supplied mines were unfit for use and dangerous. Under other contracts, no deliveries took place at all, while significant advance payments received were misappropriated.
The total amount of damage to the state’s interests under all contracts is preliminarily estimated at UAH 2.994 billion, including UAH 571.3 million in losses from the supply of unfit mines and UAH 2.423 billion in losses from possible misappropriation of advance payments. A number of state customers have filed lawsuits seeking recovery of funds, fines and penalties.
The investigation also established the involvement of a subcontractor — a company that carried out work to load ammunition with explosives and assemble items from customer-supplied materials. More than UAH 120 million in advance payments was transferred to the subcontractor’s accounts for work that, as of a specified date, investigators say had not been performed, while no effective claims work was pursued by the supplier company.
The mines’ unfitness is confirmed, in particular, by the results of physicochemical studies of the explosive substance, inspection and testing materials, and a comprehensive forensic examination report: it found the items did not comply with technical specifications and intended purpose, there were failures to initiate the explosive substance, and the mine body contained an insufficient amount of explosive substance.
Separately, investigators are checking possible use of advance funds in violation of established restrictions and their subsequent transfer to purchase equipment unrelated to the performance of state contracts, followed by disposal of this property in favor of another commercial entity. Actions in this episode are also being classified under articles related to laundering of criminal proceeds.
At present, in the case, 10 people have been notified of suspicion under Parts 1–3 of Article 255, Part 4 of Article 28 and Part 5 of Article 191, Part 4 of Article 28 and Part 3 of Article 209, Part 2 of Article 367, and Part 4 of Article 426 of Ukraine’s Criminal Code; four of them have been detained. The suspects include representatives of the private supplier company, its management, accounting staff, the head of the subcontractor company, and officials of military representative offices.
Motions have been prepared to seek pre-trial detention for the suspects with bail set at UAH 100 million to UAH 500 million.
Measures are being taken to identify the full circle of those involved, verify the role of officials in the quality control and product acceptance procedure, and ensure compensation for the damage caused to the state.
The SBI is conducting the pre-trial investigation under the procedural supervision of the Prosecutor General’s Office.
