Ukraine fights an external and internal enemy at once. The country's law enforcement has uncovered a $2.4 million scheme involving the embezzlement of state funds intended for tank armor procurement, according to the Security Service of Ukraine (SBU). It operated across two Ukrainian regions. The scheme was dismantled by the National Anti-Corruption Bureau.
During the initial phase of Russia's war, Ukraine's Defense Ministry signed a contract with the state enterprise for the urgent procurement of reactive armor for tanks. The vehicles were supposed to be delivered immediately from the factory to the frontline to strengthen Ukrainian defenses across multiple directions.
The former CEO, the commercial director of the state enterprise, and the director of a private company signed an agreement under which armor components were purchased at almost triple the market price.
The difference was siphoned off through a network of affiliated companies.
“To conceal the crime, the company director arranged purchases through fictitious companies. The resulting 'margin' was transferred to controlled accounts for later legalization,” the detectives reported.
The suspect remains in custody in connection with another investigation
During searches at workplaces and residences, authorities seized documentation and computer equipment used in the illegal activities.
According to law enforcement, the former CEO remains in custody in connection with a previous investigation regarding supplying defective mortar shells to the armed forces.
Three organizers have been charged under multiple articles of the Criminal Code of Ukraine:
- Part 3, Article 27; Part 5, Article 191 – misappropriation or embezzlement of property through abuse of office by a prior conspiracy of a group;
- Part 3, Article 209 – legalization (money laundering) of property obtained by criminal means;
- Part 1, Article 366 – official forgery.
Preventive measures for the other suspects are under consideration.
