The Security Service of Ukraine exposed the top management of a Kyiv commercial company on appropriation of millions of hryvnas of public funds allocated for laboratory equipment for the diagnosis of coronavirus. The CEO of the company was served a notice of suspicion.

Allegedly, the private company entered into an agreement with state medical institutions in Poltava and Zaporizhzhia regions. The company was to provide the laboratories with the COVID-19 diagnostic equipment. In particular, the equipment was used for the study of biological material of potential patients.

The SBU established that the businessmen violated the government-issued regulations on trade margin for medical equipment when pricing. According to forensic experts, their actions caused damage to the state budget amounting to over UAH 16.5 million (USD 611,000).

During the searches of the company’s offices, the law enforcement seized documentation confirming the illegal deal.

As of now, the CEO of the company 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 article provides for imprisonment for a term up to 12 years with confiscation of property.

The operation was conducted by the SBU Main Directorate of Counterintelligence Protection of the National Economy under the supervision of Kyiv Local Prosecutor's Office No. 7.