The Security Service of Ukraine has exposed another scheme of embezzling state funds in the procurement for the Security and Defence Forces.

As a result of an operation in Kyiv, the SSU detained ‘red-handed’ a directorate head in the Support Command of the AFU and his accomplice – the CEO of a defence supplier company.

These are a colonel of the Armed Forces of Ukraine and the head of a Lviv-based company, who set up a scheme to get ‘kickbacks’ when signing contracts.

According to the investigation, the military official was to receive a bribe of USD 45,000 from the businessman. In return for this amount, he promised to conclude a contract for supply of defence goods to the AFU.

The SSU detained both suspects during the handover of the first portion of the illegal payment, USD 14,600.

The amount of the businessman’s planned contract with the AFU was UAH 36 mln (USD 940,000).

Due the SSU’s prompt response, the scheme was blocked and further fraud with budget funds was prevented.

During over 30 searches at the suspects’ homes and offices in Kyiv and Lviv, investigators seized:

• computers, mobile phones, electronic data storage devices, documents and accounting records with evidence of the criminal scheme;
• a large amount of cash, equal to almost 10 mln in UAH, the origin of which is yet to be established.

The detainees have been notified of suspicion under two Articles of the CCU:

• 368.3 (acceptance of offer, promise or receipt of unlawful benefit by official);
• 369.3 (offering, promising or providing illegal benefit to official).

The court has chosen custody as a measure of restraint with the right to be released on bail in the amount of UAH 10 mln each.

The investigation is ongoing.

The suspects face up to 10 years in prison with confiscation of property.

The operation was conducted by the SSU Lviv Office under the procedural supervision of Lviv Specialized Defence Prosecutor’s Office of the Western Region.