SBU documents large-scale embezzlement of “Ukrzaliznytsia” funds due to purchase of low-quality spare parts
The SBU has documented a large-scale embezzlement of funds of the
JSC “Ukrzaliznytsia”, which posed a threat to the stable operation of railway system.
SBU operatives established that during 2018-2019, the offenders conspired with some heads of one of “Ukrzaliznytsia” departments. Officials ensured winnings during tenders, despite the fact that the “contractors” did not have the appropriate permits and certificates to repair wheelsets for passenger carriages. They also supplied the company with poor-quality spare parts of unknown origin, smuggled from Russia. The total amount was almost UAH 200 million (USD 7.1 million).
Moreover, due to a large-scale falsification of documents on performed works,
the offenders misappropriated UAH 50 million (USD 1.8 million) in cash via dummy companies.
According to experts, the exploitation of spare parts, restored in violation of technological processes, could create real preconditions for emergencies.
Within the criminal proceeding, the SBU is conducting 27 searches in “Ukrzaliznytsia” subdivisions, production premises, offices and offenders’ residences located in five Ukrainian regions.
At the office of supplying company, law enforcement officers seized USD 65,000, over USD 2 million (USD 71,428), seals of several companies involved in fictitious business transactions, including a forged seal of the
JSC “Ukrzaliznytsia”.
During searches, financial and economic documentation confirming the illegal activity is being seized at all the addresses. In particular, the SBU found contracts of delivery, acceptance certificates, registers of tax and expense invoices, invoices for payment, notices, technical passports, job descriptions, powers of attorney, and certificates.
The pre-trial investigation is ongoing within the criminal proceedings under Part 2 of Art. 364 and Part 3 of Art. 212 of the Criminal code of Ukraine.
The operation is carried out jointly with the regional divisions of the State Tax Service under the legal supervision of the Prosecutor's Office of Zaporizzhya region.
