The SSU Military Counterintelligence and the Economic Security Bureau of Ukraine have uncovered a scheme to embezzle budget funds during the execution of a defence contract in Zhytomyr region. The co-owner of a private company that embezzled funds during the construction of a military facility has been detained.

At least UAH 2.7 million (USD 61,000) were stolen during the construction of a Ukrainian Armed Forces command post on the territory of one of the military units.

According to the investigation, the suspect’s company was awarded a contract to construct a defence facility.

Under the terms of the agreement, the company’s co-owner, who is also a technical supervision engineer, was required to oversee the quality of the construction work and ensure its completion within the agreed timeframe.

Instead, she ‘turned a blind eye’ to the failure to meet the contract deadlines and signed a handover certificate transferring the unfinished construction to the military unit’s balance sheet.

The investigation also established that the contractors had used substandard building materials, rendering the facility completely unsuitable for its intended defence purpose.

An engineering and technical forensic examination initiated by the law enforcement confirmed the poor technical condition of the military structure.

The perpetrator has now been notified of suspicion under Article 367.2 of the CCU (official negligence).

The suspect faces up to five years’ imprisonment. The investigation is ongoing to identify all those involved in the scheme.

The operation was carried out under the procedural supervision of the Specialised Defence Prosecutor’s Office in the Central Region.