In Dnipropetrovsk region, the SSU shut down an organized criminal group. The perpetrators set up a scheme to embezzle budget funds for the repair of military equipment. Having won the MoD bid for UAH 58 m (USD 2,202 810), they installed used parts instead of new ones.

According to the investigation, organizers of the scam were local entrepreneurs. They reached an agreement with a regional military entity, which helped them win the bid for repair of military equipment. The perpetrators used forged documents for participation: they had neither permits, nor premises or facilities for such work.

The tender was worth the total amount of UAH 58 m (USD 2,202 810).

The perpetrators won the bid in September 2021 and over the month embezzled 30% of funds.

Upon the searches in Dnipropetrovsk and Poltava regions, including at the military bases, the investigation established that the group dismantled used equipment in a rented facility. The parts were renovated and installed on military equipment instead of new ones.

To set up the scam, offenders concluded fictitious agreements with controlled business entities for supposed supply of new spare parts.

The repaired equipment was then sent to the JFO area.

Currently, forensic examinations are to be conducted to serve the perpetrators the notice of suspicion of misappropriation and embezzlement of property through abuse of office.

The investigation is underway to establish all the circumstances and those involved in the crime.

The operation was carried out by the SSU Office in Dnipropetrovsk region under the supervision of Dnipropetrovsk region Prosecutor’s Office.