Embezzlement of millions uncovered at strategic defence plant: three suspects charged

Ukraine's anti-corruption bodies, together with the Security Service of Ukraine (SSU), have uncovered a scheme involving the embezzlement of funds during the procurement of materials for the defence sector in Dnipropetrovsk Oblast.

Source: National Anti-Corruption Bureau of Ukraine (NABU); Specialised Anti-Corruption Prosecutor's Office (SAPO); Ukrainska Pravda source in law enforcement agencies

Quote from SAPO: "Under the procedural guidance of a prosecutor from SAPO, NABU detectives served a notice of suspicion on the first deputy director of one of the world-renowned state-owned companies in the defence industry, the head of a structural unit of the same company and the director of a private supplier company, who were exposed for embezzling funds during the procurement of materials to meet the needs of the defence sector."

Details: The source said the case concerns the Pivdenmash plant. Among those who received suspicion notices is First Deputy Director General Kostiantyn Zavhorodnii.

The SSU says the structural material was intended to be used for the mass production of weapons and ammunition for Ukraine's defence forces.

Investigators say that Pivdenmash had to procure rolled aluminium products in April 2022. The plant's first deputy director decided to misappropriate part of the funds allocated for this purchase.

He involved the head of one of the plant's structural units in the scheme, who in turn engaged the director of the company supplying the aluminium products. Although the company was ready to supply the materials at market prices, the prices in the commercial offer were inflated and the goods were sold at a price one third higher at the request of the officials.

The total damage to the state plant exceeded UAH 19 million (about US$430,000), which the participants in the criminal scheme converted into cash.

The actions of the suspects were classified as follows:

• the plant's first deputy director – Article 191.5 of the Criminal Code of Ukraine (misappropriation, embezzlement or conversion of property by malversation committed in an especially gross amount or by an organised group)
• the head of the plant's structural unit – Article 27.5 (complicity) and Article 191.5 of the Criminal Code of Ukraine
• the director of the company – Article 27.5 and Article 191.5 of the Criminal Code of Ukraine

Support Ukrainska Pravda on Patreon!