The SSU Military Counterintelligence jointly with the SBI have shut down another corruption scheme of embezzlement of defence budget during construction of infrastructure facilities for the Armed Forces of Ukraine.

As a result of the operation in Odesa, the SSU detained the chief engineer of the military housing and maintenance directorate.

According to the investigation, the official misappropriated over UAH 1 mln (USD 26,000) allocated for construction of a multifunctional sports complex in one of the oblast military towns.

He involved the director of a local construction company in the scheme.

According to the contract, the businessman was to provide all the work on the construction of a modern sports complex for Ukrainian defenders.

However, the contractors failed to fulfil their obligations. They did not install over 800 m² of rubber flooring and over 50 outdoor lighting fixtures.

At the same time, the official and the entrepreneur received full payment from the budget. Then, they siphoned off the money and divided it among themselves. To do this, they entered false information into reporting and financial documentation.

Construction, technical and economic examinations confirmed the offence.

Based on the evidence, the chief engineer of the military housing and maintenance directorate has been notified of suspicion under three Articles of the CCU:

• 191.4 (misappropriation, embezzlement or seizure of property through abuse of office, committed under martial law);
• 366.1 (forgery in office);
• 410.3 (theft, misappropriation, extortion by a serviceman of weapons, ammunition, explosives or other munitions, vehicles, military and special equipment or other military property, their acquisition through fraud or abuse of office).

The criminal actions of his accomplice, the company director, were qualified under the same Articles of the CCU.

The court is to decide on custody as a measure of restraint.

The investigation is ongoing. Primarily, the law enforcement agencies are checking the involvement of other officials of the military housing and maintenance unit.

The persons involved are facing up to 12 years in prison.

The operation was carried out under the procedural supervision of the Specialized Defence Prosecutor’s Office of the Prosecutor General’s Office.