Misappropriation in defense industry: former top officials of military plant import outdated equipment worth USD 1,7 million

SBU suspects former top officials of a scientific and industrial association of misappropriation in especially gross amount. The officials imported from abroad outdated lines worth USD 1,7 million, which as a matter of fact appeared to be metal and junk.

Allegedly, the scientific and industrial association and the state enterprise Bezpeka Ukrainian Center concluded an agreement for the supply of ammo, crucial for the combat capability of Ukrainian Army. According to the agreement, the military plant was to purchase a modern production line from a foreign company.

SBU CI established, that the top-officials of the association knowingly signed a detrimental contract with a foreign supplier. As a result, Ukraine received outdated, malfunctioning equipment, non-compliant with the terms of the contract. The imported lines were produced mostly in the 1920-s, so the lines were worn-out and not designed for production of the necessary caliber ammo. The foreign party also breached the contract, being unable to put the line into operation.

The officials’ actions led to a range of failures in supply of deficit ammo for the needs of Ukrainian Army and other military formations and decreased the defensive capability of the state.

One of the former officials was served a notice of suspicion of misappropriation, embezzlement or conversion of property by malversation (P. 5 Art. 191 of the Criminal Code of Ukraine). The form of detention is being chosen.

The operation was conducted by CI officers of the SBU Office in Vinnytsia region, under the supervision of the Prosecutor’s Office of Vinnytsia region.