Will the Ministry of Defense defeat the food mafia? Waiting for the last fight

While we are following the detention of Roman Grinkevich, a much more important process is taking place behind the scenes of the Ministry of Defense. We are talking about food procurement reform and the transition from purchasing an entire catalog of 409 items to individual product groups. And now it is becoming clear that the food mafia will fight for its billions to the last. In collaboration with interested military personnel.

Food for the military was the third largest expenditure item for the Ministry of Defense after the purchase of weapons and social payments.

In previous years, the amount was more than 40 billion. Now the budget list provides for 23.7 billion (third position was given to expenses for fortifications).

However, despite everything, this remains the most delicious piece in the rear procurement of the Ministry of Defense.

For a better understanding, let’s take the same “Trade Lines Retail” of the Grinkevichs. At the company's latest food tenders, a lot worth 470 million was awarded for the supply of food. At the same time, the company is participating in a tender for a lyceum in Zhitomir, where it supplies toilet paper holders for only 7 thousand hryvnia. The company will receive only 4.8 thousand hryvnia from air fresheners at the same lyceum.

That’s why you have to go crazy to enter Defense Ministry tenders. From conversations with lawyers, the author learned that some clever businessmen, even already having a trail of production, are ready to pay 200 thousand dollars in bribes in order to receive a contract from the Ministry of Defense.

If you don’t believe the rumors, then read the latest news from the SBU - this time the head of one of the departments of the Armed Forces Support Forces Command and his accomplice, the general director of a company supplying defense goods, were detained.

We are talking about a colonel of the Armed Forces of Ukraine and the head of the Lvov company, who established a kickback scheme when concluding contracts.

According to the investigation, the military official was supposed to receive a bribe from the businessman in the amount of almost 45 thousand US dollars. For this amount, he promised to conclude an agreement on the supply of defense goods for the Armed Forces of Ukraine.

That is, they steal like on the last day, but this is a lyrical conclusion. Now to the point.

According to the announced changes, already somewhere in February, the State Logistics Operator would have to begin purchasing food under the new system. That is, the food itself will not be purchased in bulk for all 409 catalog items, but according to individual food groups. And logistics services will be purchased separately.

If this idea is implemented, it will seriously reshape the food supply market. And, perhaps, lo and behold, retail and manufacturers will come there.

However, what happened at meetings at the Ministry of Defense last week makes the author seriously worry that the reform will not be launched in the coming months.

Here is my dialogue with one of the key officials of the Ministry of Defense:

-What do you have for food? Silent sabotage? - I ask.

- Why so quiet? Loud, judging by the last meeting,” the official replies.

One of the reasons may be that the command of the logistics forces will not transfer the necessary information to the bunker.

How can this be, you ask?

And here the author will have to tell you his main disappointment and irritation during the story with eggs at 17. Of course, members of the anti-corruption council at the Ministry of Defense very quickly found the very contract where there was a catalog with eggs at 17 apiece. But when the author asked how many such eggs were supplied, a specialized employee of the department told her that the Ministry of Defense did not have this information. And even if the author writes a request, they will collect information about it for ... 3 years.

As you know, the Ministry never directly buys eggs from anyone at 17 or 6.9 - it buys doboda (conditional three meals a day for military personnel, or otherwise a set of products). For some 105 or 146 UAH. Agree, no one will eat even once in any nutritional establishment for that kind of money.

But it is precisely in the writing off of this additional benefit that the devil lies.

Because no one brings ready-made mashed potatoes and chops to the unit—the food is delivered. And this extra income is written off at the price of the products supplied. That is, they brought a kilogram of tomatoes for 150 UAH, and wrote off one additional benefit.

For example: in February 2023, according to the report of the Accounts Chamber, TRADE GRANITE INVEST LLC supplied one of the military units with 260 kg of food products with a total cost of 39,180.0 UAH (frozen chicken fillet 180 kg for the amount of 30,780.0 UAH, frozen chicken thigh 80 kg in the amount of 8400.0 UAH), and this was already carried out by the military unit as a quantity sets of products - 268.72428 units. (39180.0 UAH /
145.8 UAH price for one set).

As part of the same audit, the Accounting Office discovered that the supplying companies themselves, which signed agreements with the Ministry of Defense, did not transport anything to the military units themselves. But the prices were also inflated.

Let's see how VT DEVELOPMENT LLC, which also belongs to the Grinkevich family, but which was little mentioned in the last weeks of the scandal, supplied products.

Thus, the specified company bought a group of dairy products from MO LK OM LLC.

As a result of the audit of the Accounting Chamber, it was revealed that 15-20% sour cream was purchased at a price of 87.09 UAH per kg, and supplied at a price of 144.0 UAH per kg, which is 56.91 UAH or 39.52% more expensive.

UHT milk 2.5% was purchased at 33.00 UAH/kg, delivered at 45 UAH/kg, which is 12.0 UAH/kg more expensive (26.67 percent).

Yogurt with additives from 1.5% was purchased at a price of 61.04 UAH/kg, and delivered for 78 UAH/kg, which is 15.91 UAH/kg (20.4%) more expensive; creamy dessert Fanny - 99.20 UAH/kg, delivered for 150.0 UAH/kg, which is 50.8 UAH/kg (20.4%) more expensive.

Somewhere it looks like this, in short, and there is a scheme for accumulating capital for the acquisition of Chanels from Cartier, land plots in Kozin and hotels on the Makarska Riviera.

Now for those who are waiting for someone to be imprisoned for 17 eggs (preferably a former minister, but this is not certain). In order to raise suspicion, losses must be calculated. And in order to count them, it was necessary to immediately, without delay, remove all the necessary invoices from all military units where the products were supplied.

If they were not removed, then most likely they were already eaten by mice, or they were copied.

Because these illegal transactions did not take place in the minister’s office, but at the lower levels, where individual food chiefs could help individual suppliers get rich as much as possible. Not without benefit to yourself. You can return to the beginning of the article and read about the detention of the SBU.

And also recall the case of the head of the food supply department of the rear of the command of the Logistics Forces of the Armed Forces of Ukraine, Colonel Alexander Kozlovsky, who is suspected of organizing a criminal scheme to supply food to the Armed Forces of Ukraine at inflated prices.

After the scandal with eggs at 17, producers who sold goods to the army at best at cost, shouted to be allowed to purchase.

In particular, the author was included in the corresponding meeting at the Ministry of Agrarian Policy. Back in early autumn, the Ministry of Defense had a plan and the Logistics Forces Command agreed with it to purchase bread, like water, in separate lots. The same plan was for milk.

But then this plan turned into an experiment in one of the areas where manufacturers, by some miracle, gave prices 20% higher than current suppliers.

And then purchases took place according to the old scheme, from all known suppliers.

You will be surprised, but at the latest meetings at the Ministry of Defense, some bright minds are again advocating for purchasing certain food groups only in the West of the country, and for the majority purchasing according to the old rules. And accordingly, for old players.

Perhaps there is a rational grain in this thesis, but given that mid-level officials of the Ministry of Defense do not admit the facts of corruption and quality problems at their level, this resembles sabotage of the reform.

And believe me, the main beneficiaries of the army food pool will not stand up for the price here. Because if the rules are not changed, they will continue to earn their billions.

The Ministry of Defense will hold another meeting on Monday. Deputy Minister Dmitry Klimenkov and the head of the bunker Arsen Zhumadilov are determined to break the hydra's back.