In the Zhytomyr region, a former director of a state-owned enterprise is suspected of being involved in a gabbro scheme worth 71 million hryvnias
In the Zhytomyr region, a former director of a state-owned enterprise has been notified that he is under suspicion of the unlawful extraction of mineral resources and the misappropriation of state property. According to law enforcement authorities, the state suffered losses of 71 million hryvnias as a result of these unlawful activities.
The investigation established that the state-owned enterprise, which held a special licence to use subsoil resources for the extraction of rock, was carrying out work outside the licensed area of the Bystriivskyi deposit in the Zhytomyr region.
This involved the illegal extraction of gabbro, a mineral of national importance used in construction and the production of cladding materials.
Law enforcement officers also uncovered another scheme designed to cause losses to the state-owned enterprise. According to the investigation, officials were selling blocks of gabbro at significantly below-market prices, classifying high-quality products as substandard.
As a result, buyers received the stone at prices below market value, whilst the state-owned enterprise lost tens of millions of hryvnias in profit.
According to the findings of an audit by the State Service of Geology and Subsoil of Ukraine, over 6,200 cubic metres of rock were illegally extracted in an area outside the boundaries of the special permit.
Expert assessments confirmed losses totalling 71 million hryvnias. Of this amount, 47.3 million hryvnias represent losses from the illegal use of subsoil resources, whilst a further 23.8 million hryvnias stem from the sale of products at artificially low prices.
During the pre-trial investigation, law enforcement officers carried out searches and seized documentation and other evidence.
On the basis of the evidence gathered, the former director of the state-owned enterprise was served with a notice of suspicion under Part 5 of Article 191 and Part 4 of Article 240 of the Criminal Code of Ukraine.
Law enforcement agencies are currently identifying all those involved in this scheme.
The penalties under the relevant articles provide for up to 12 years’ imprisonment, disqualification from holding certain positions or engaging in certain activities for a period of up to three years, as well as the confiscation of property.
