Large-scale abuse: NABU suspects officials of stolen 62 million

On Thursday, August 24, the National Anti-Corruption Bureau of Ukraine, together with the Specialized Anti-Corruption Prosecutor's Office, released information about abuses related to the purchase of food products worth UAH 62.5 million.

According to the investigation, these products were intended to be used as humanitarian aid to the population of various regions: Donetsk, Kherson, Sumy, Zaporozhye, Kyiv, Khmelnitsky, Dnepropetrovsk and Poltava regions, as well as in the city of Kyiv.

Former and current officials are involved in the implementation of the deal. This was reported by the SAPS press service.

During the pre-trial investigation, it became clear that in March 2022, the First Deputy Minister of Agrarian Policy and Food carried out a scheme that included organizing the purchase of products for regional military administrations using funds from the Ukrzaliznytsia joint-stock company. A special feature of this scheme was that products were purchased from a controlled company at prices that were noticeably 2-3 times higher than market prices.

The mechanism for inflating prices was implemented by purchasing products from a foreign manufacturer (Poland) through an intermediary company that was under the control of the persons involved. Thus, the cost of goods was artificially inflated, which made it possible to carry out large-scale theft of funds.

As a result of the implementation of this scheme, from March to August 2022, Ukrzaliznytsia JSC suffered damage in the amount of UAH 28.8 million (including VAT).

Also during this period, with the participation of the same top official, purchases of food products for government needs were carried out at inflated prices through another company, which was also under his control. This company, using an intermediary company, purchased products from a foreign manufacturer (Turkey) at market prices. Similar to the first case, product prices increased at the stage of resale between controlled companies.

To implement this scheme, the Deputy Minister of Economy, who was acting at that time, was also involved. He participated in withholding information about more advantageous offers from other market participants, including Ukrainian manufacturers. In addition, this official participated in manipulating the procedure for approving applications and invoices for the purchase of products from a controlled company, violating the law and encouraging illegal approval.

In both episodes, the main mechanism of the scheme was that controlled companies were used to artificially inflate prices for products and further enrich themselves against this background.

Due to the operation of the scheme, from March to August 2022, Ukrzaliznytsia JSC suffered damage in the amount of UAH 33.7 million. After receiving payment, the money was transferred to a foreign company with signs of fictitiousness for further legalization.

Suspicion was reported to 2 persons:

• First Deputy Minister of Agrarian Policy and Food;
• ex-Deputy Minister of Economy.

The actions of persons are qualified under Part 2 of Art. 364 of the Criminal Code of Ukraine.

The question of what measures the suspect can take is being decided. The pre-trial investigation continues and other participants in the crime are being identified.

This incident was commented on by journalist Oleg Novikov.

“We are talking about ex-Deputy Minister of Economy Alexander Griban and First Deputy Minister of Agrarian Policy and Food Taras Vysotsky,” he writes.