Machinations with Products for the Armed Forces of Ukraine: NABU has announced suspicions against a former Ministry of Defense official and unscrupulous suppliers.

A scheme of embezzlement during the procurement of products for the Armed Forces of Ukraine has been uncovered

The National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor's Office reported the uncovering of a scheme of misappropriation of public funds during the procurement of food products for the Armed Forces of Ukraine during the invasion by Russia. A former head of the Ministry of Defense Department and other individuals are suspected.

According to NABU's report, the machinations took place during the procurement of product kits in the first two years of the war. Products from 409 positions were ordered, but the most popular products accounted for only 10% of the assortment. The rest of the products that were ordered rarely or not at all were overpriced.

«At first glance, there were no violations, and the price of the kit did not change. However, the potatoes, which were supplied by the thousands of tons, were sold at three times the price, while seasonal berries and fruits, which were hardly ordered, cost pennies», the NABU noted.

As a result of these machinations, two companies controlled by a single owner received unjustified windfall profits amounting to over 733 million UAH. Part of these funds was utilized as dividends and financial aid to affiliated companies.

The prosecutor's office suspects that the Ministry of Defense official, when signing contracts, did not notice anomalies in the prices set by the catalog. After the investigation and the dissemination of information in the media, the accomplices of the scheme lowered the prices of some products, which prevented further embezzlement of budget funds.

After the intervention of NABU and SAP, the Ministry of Defense took measures to improve the system of procurement of products. Overall, the embezzlement amounted to over 733 million UAH, while the attempted misappropriation was 788 million UAH.

It should be noted that in January 2023, it became known that the Ministry of Defense was procuring products at inflated prices. For example, eggs cost 17 UAH per piece, while their retail price was 7 UAH. In February 2024, the Ministry of Defense set maximum prices for products for the military.