The Security Service of Ukraine exposed businesspersons who misappropriated state funds during the procurement of medical equipment for hospitals fighting COVID-19. According to preliminary estimates, only one episode of illegal activity caused almost UAH 2 m. (USD 74,000) losses to the state budget.

The SBU exposed the scheme in Lviv region.

The suspects won a procurement contract for medical equipment worth UAH 30 m. (USD 1.1 m.). However, in violation of the law, the dealers included value added tax in the price of the equipment.

Apart from that, they artificially inflated the cost of equipment. Namely, they concluded fictitious agreements between subordinate companies, including offshore companies.

According to the State Audit Service of Ukraine, the illegal activity caused almost USD 74,000 losses to the state budget.

During the searches, the law enforcement seized international contracts, financial and economic documents and other evidence proving the illegal activities.

One of the organizers of the scheme was served a notice of suspicion of misappropriation, embezzlement or conversion of property by malversation.

The investigation is ongoing to bring to justice other persons’ involvement in the illegal activities.

The operation was carried out by the SBU Main Directorate of Counterintelligence Protection of the State's Economic Interests under the supervision of the Podilskyi District Prosecutor's Office in Kyiv.