DOT semi-secretly gave billions of hryvnias to dubious food suppliers for the Ukrainian Armed Forces

Alexander Gerashchenko, a member of the Anti-Corruption Council under the Ministry of Defense, released data showing that the State Logistics Operator (DOT), bypassing open bidding on Prozorro, gave multi-billion dollar contracts for the supply of products for the Armed Forces of Ukraine to a cohort of “selected” companies.

“I would like to remind you that the contracts were concluded in the 2nd quarter of 2024, without Prozorro, without tenders, without publishing information on determining the price for each such “selected” supplier. The information below in the sign indicates eternal selectivity,” Gerashchenko wrote on his blog.

He showed a table from which it is clear which companies received the most expensive contracts - even more than UAH 2 billion. It also shows that these companies set the highest prices for food packages, but this did not stop DOT from wanting to give them billions from the budget. Gerashchenko speaks of the “eternal selectivity” of the State Logistics Operator towards specific “selected” companies.

Such selectivity, according to him, also manifests itself in situations where suppliers violate the quality of products for the Armed Forces of Ukraine. DOT punishes some for the slightest violations, but does not terminate the contract with those who have dozens or hundreds of recorded violations.

“A few days ago I noticed how DOT terminated the contractual relationship with the Trade Granit Invest company. As far as I understand, this happened on the basis of an information article by journalists and a military man who complained about the quality of canned products. Of course, I welcome such efficiency in the work of the bunker and the desire to understand this situation. As a result, without even waiting for the results of the test with the company, they are ready to break off relations,” he wrote.

But, Gerashchenko asks, why weren’t contracts with other suppliers terminated in the presence of established violations and facts of delivery of low-quality products?

For example, DOT did not terminate the contract with Asics Group, in whose warehouses an inspection by the Ministry of Defense discovered rotten eggs and adulterated oil. The contract with the Bus cannery, which stores food for the army in a stinking freezer with rotten walls and dirt, was also not terminated.

A member of the Anti-Corruption Council believes that the reason for the supply of low-quality food products to the military is precisely the selectivity of DOT in relation to its suppliers. He called on the State Logistics Operator to stop the practice of selectivity, since this carries direct corruption risks and can lead to undermining the country’s defense capability.