SBU exposes large-scale misappropriation of budget funds allocated to schools
SBU cracked down on misappropriations of budget funds allocated for computers procurement under the New Ukrainian School program.
Allegedly, a group of officials of the district authorities of Ivano-Frankivsk region and representatives of more than 10 commercial entities, including Kyiv region companies, were getting kickbacks on procurement of computers and media equipment for schools at artificially high prices.
Thus, the fraudsters forged tender procedures to create bid-winning terms for affiliated companies. At the same time, other bidders who offered better equipment at lower prices were removed from the tender under false pretexts.
It was also established that the customers did not negotiate the computer procurement projects with the Ministry of Digital Transformation, thus violating the current law.
According to the contracts signed, the affiliated commercial entities received more than UAH 70 million (USD 2,5 million) on bank accounts.
The SBU documented that the wholesale batches of computer equipment were procured at a price twice as high as the retail value of the same models from well-known suppliers and official manufacturers.
To get bigger kickbacks, the officials bought low-quality computers which could jeopardize children's health. They, violating the orders of the Ministry of Education and Science of Ukraine, purchased cheap models which had a negative impact on children's vision, rather than providing proper quality monitors for first grade students.
Within the criminal proceedings initiated for misappropriation, embezzlement or conversion of property by malversation, the law enforcement officers conducted searches of offices of Ivano-Frankivsk region district authorities and the affiliated commercial entities in the city of Kyiv and seized computer equipment, mobile phones, money and documents proving the illegal activity.
The operation was carried out by the SBU Department for Counterintelligence Protection of State Interests in the Sphere of Information Security and the SBU Office in Ivano-Frankivsk region under the supervision of the regional Prosecutor's Office.
Based on the results of the investigation, the SBU will inform the Ministry of Education and Science to take appropriate steps to block corruption schemes during equipment procurement for preschool and general educational institutions.