The SSU Counterintelligence, jointly with the Economic Security Bureau of Ukraine and in cooperation with the management of the Ukrainian Defence Industry JSC, has uncovered a scheme of embezzling budget funds for the purchase of components for combat aircraft of the Armed Forces of Ukraine.

These components are power-boosting modules for onboard radar systems on Ukrainian SU-27 fighter jets.

According to the investigation, the director of a Ukrainian defence enterprise, together with his accomplices, attempted to steal almost UAH 4 mln (USD 107,000) of budget money in the purchase of this equipment.

The head of the enterprise entered into an agreement with an affiliated commercial entity to purchase an aircraft module.

However, the suppliers delivered defective components to the state-owned enterprise, and its head ordered to receive the defective products and pay for them.

The official signed accounting documents to accept the faulty items.

Based on these documents, the defence company transferred the first instalment - UAH 1.9 mln - to the businessmen.

The participants of the scheme planned to divert the money into the shadows through controlled firms, cash it out and divide.

However, the law enforcement exposed and documented the transaction in time. As a result, the entire contract amount of UAH 3.9 mln was seized and the attempt to embezzle the money was thwarted.

The former director of the state-owned enterprise, the head of the supplier company and two other accomplices have been notified of suspicion under two Articles of the CCU:

• 191.5 (misappropriation, embezzlement or seizure of property through abuse of office);
• 28.2, 366.1 (forgery in office, committed upon prior conspiracy by a group).

The investigation is ongoing. The investigators are checking if the persons involved committed crimes during conclusion of other defence contracts. The suspects face up to 12 years in prison.

The investigation is carried out under the procedural supervision of the Prosecutor General’s Office.