The SSU and the NABU have collected evidence against the organizers of another scheme of misappropriation of funds from Ukraine’s defense budget.

The case pertains to the embezzlement at the March 2022 state order of the Ministry of Defense for dynamic protection for tanks.

A contract was signed with a machine-building company in Kyiv for serial production of such components.

However, the former head of the state-owned enterprise and its chief accountant decided to make some illegal money at the expense of the state contract.

They artificially inflated the cost of the ordered products – the ‘difference’ was diverted to shadows through controlled commercial firms.

The scheme caused losses to the state budget of UAH 12 mln (USD 288,000).

The SSU Counterintelligence documented the actions of the state enterprise officials and participants of the scheme and shut it down in early 2023.

Since then, examinations and other procedural actions to collect a solid evidence base have been ongoing.

Based on the SSU and NABU investigation, the former CEO of the state-owned enterprise, his accountant and one of the key participants in the scheme, head of the company through which they diverted the budget funds, have been served notices of suspicion.

Their criminal actions are qualified under three Articles of the CCU:

• 191.5 (misappropriation, embezzlement or seizure of property through abuse of office);
• 209.3 (laundering of proceeds of crime);
• 366.2 (forgery).

The head of the company involved has been detained in Kyiv. The court is to decide on a measure of restraint.

In connection with the crimes, the former assistant to the head of the state contractor company and his accomplice, a person who provided his banking details for cashing the stolen money, were served suspicion notices.

The former head of the state contractor and its chief accountant, who are hiding abroad, were notified of suspicion in absentia.

The suspects face up to 12 years in prison with confiscation of property.

The investigation is carried out under the procedural supervision of the Prosecutor General’s Office.