The Security Service of Ukraine exposed in Dnipropetrovsk region a scheme of embezzlement of state funds during tenders for service components for railway rolling stock.

Allegedly, in 2018 one of the strategic enterprises of JSC "Ukrzaliznytsia" had to purchase 28 sets of batteries for diesel locomotives. The winner was established after two tenders.  The two companies supplied the enterprise with 13 and 15 sets of batteries worth almost UAH 10,000,000 (USD 370, 371). Additionally, one official representative of the foreign manufacturer imported such goods to Ukraine and sold it to two firms-mediators. The merchants in collusion with officials of the Ukrzaliznytsia unreasonably overestimated their cost and after payment took the budget funds into the shadow via bogus companies. According to the forensic economic examination, the state suffered losses amounting to UAH 2,000,000 (USD 74,075).

The delivered products of Ukrzaliznytsia have also already had complaints about its quality from other buyers. Therefore, the use of batteries could have led to destabilization of the railway and emergency events, in particular rolling stock accidents.

Within the framework of criminal proceedings, the head of the procurement department of the state-owned enterprise was served a suspicion notice for misappropriation and embezzlement of property by malversation (Part 5 Art.191 of the Criminal Code of Ukraine).

The information on possible involvement of other officials is being checked.

The exposing operation was carried out by the SBU officers in the course of complex measures on protecting critical infrastructure facilities of the state's railway industry together with the National Police investigators under the procedural supervision of Dnipropetrovsk Local Prosecutor's Office No. 1.