SBU CI Department officers uncovered the mechanism of appropriation of budget funds during State Defense Order execution.

Operatives of the special service have found that during 2017-19 the owner of one of Chernihiv commercial enterprises concluded two contracts with the Ministry of Defense totalling over UAH 100 million. One of the contracts was for the supply of devices for protection systems of combat helicopters. With the assistance of former military officials, including one of the Deputy Minister, he significantly overvalued the cost of military products.

Part of transferred by the MoD funds the entrepreneur by means of conducting sham cashless operations converted into cash through a number of controlled companies. Then moved out in “shadow” funds were appropriated by the participants of a deal.

According to preliminary estimates, the amount of losses incurred by the offenders to state budget comprises more than UAH 32 million.

During the searches in military units responsible for military buying, particularly in Kyiv, Kharkiv and Chernihiv, law-enforcement officers seized financial and payment records, draft accounting, seals of commercial structures involved in illegal deals.

The criminal proceedings initiated under part 5 Art. 191 of the Criminal Code of Ukraine.

The urgent investigative actions on establishing and bringing to criminal responsibility all persons involved in the organisation of illegal activity are under way. Among the persons involved in proceedings there is the MoD current employee.

Measures to expose offenders were conducted by the SBU officers together with the NABU detectives under the procedural guidance of the Specialized Anti-Corruption Prosecutor’s Office.