The SSU Military Counterintelligence, in cooperation with the Economic Security Bureau and with the assistance of the Minister of Defence, has uncovered a large-scale scheme to embezzle budget funds during government procurement for the Armed Forces of Ukraine.

The embezzlement involved over UAH 71 mln (USD 1.6 mln) in the supply of bulk shipments of food to the Ukrainian army during 2022–2024.

As the investigation established, the former head of the Ministry of Defence’s Department of Public Procurement was involved in organising the scheme.

While in office during the mentioned period, the suspect involved three executives of affiliated commercial entities in the illegal activity.

The department head arranged contracts with them for the supply of food to military units of the Armed Forces of Ukraine totalling nearly UAH 400 million.

However, after state funds were transferred to their accounts, the contractors shipped products that did not meet the State Standards of Ukraine or the established food supply norms for Ukrainian soldiers.

In this way, the organisers artificially reduced the cost of the goods for themselves and distributed the resulting ‘difference’ among all participants in the scheme.

During the searches of the suspects’ premises, the investigators seized smartphones, computer equipment, and documentation containing evidence of the crime.

All four suspects have been notified of suspicion under Article 191.5 of the CCU (misappropriation, embezzlement, or acquisition of property through abuse of official position, committed on a particularly large scale or by an organised group).

The decision on a measure of restraint is pending. The investigation is ongoing.

The suspects face up to 12 years in prison with confiscation of property.

The operational and investigative measures were carried out under the procedural supervision of the Specialised Defence Prosecutor’s Office.