A scheme involving the embezzlement of over 11 million hryvnias from the procurement of generators for the Armed Forces of Ukraine has been uncovered in the Chernihiv region
The Military Counter-Intelligence Directorate of the Security Service of Ukraine and the State Bureau of Investigations, in cooperation with the Commander-in-Chief of the Armed Forces of Ukraine, have uncovered a scheme involving the misappropriation of public funds during the procurement of generators for the military in the Chernihiv region.
According to the investigation, the commander of the military unit, his deputy, and representatives of the supplier companies were involved in the scheme. Law enforcement officers established that throughout 2022, officials concluded contracts for the supply of generators and power stations for the needs of the Armed Forces of Ukraine at inflated prices.
This involved the procurement of hundreds of diesel generators and power stations of various capacities, totalling over 400 million hryvnias. The equipment was intended to provide autonomous power supply for the Ukrainian military.
The investigation established that, following the conclusion of the main contracts, those involved in the scheme initiated the signing of supplementary agreements, thereby increasing the cost of the equipment by 14%. At the same time, current legislation permitted price increases of no more than 10%.
To justify the price increase, letters were sent to the military unit citing alleged rises in logistics costs and changes in market conditions. According to the investigation, some of these explanations were untrue, and certain documents lacked the necessary calculations or supporting evidence.
Despite the lack of proper grounds, officials approved the additional agreements, after which the suppliers received payment at inflated prices. An expert assessment commissioned by law enforcement confirmed that the state had suffered losses of over 11.2 million hryvnias.
Furthermore, the investigation established that some of the purchased generators were not fit for their intended purpose, as the lubricant required to start them had not been procured in accordance with the terms of the contracts.
Two military officials and their accomplices from commercial organisations have now been notified of their status as suspects under Part 5 of Article 191 of the Criminal Code of Ukraine. The charges relate to the misappropriation of property through abuse of official position, committed on a particularly large scale by an organised group.
The penalty under this article provides for up to 12 years’ imprisonment with confiscation of property. The pre-trial investigation is ongoing.
The proceedings are being led by the Specialised Prosecutor’s Office for Defence in the Central Region.
