Ukraine: Officials stole tens of millions of dollars intended to buy weapons
Employees of a Ukrainian arms company conspired with Defense Ministry officials to embezzle nearly $40 million intended to purchase 100,000 mortar shells for the war with Russia, Ukraine’s security service said.
Ukraine’s Security Service said late Saturday that five people had been charged, with one person arrested while trying to cross the Ukrainian border.
Ukraine’s Security Service said, “If found guilty, they face up to 12 years in prison”.
The investigation comes as Kiev tries to crack down on corruption in a bid to accelerate its membership in the European Union and NATO.
Officials from both blocs have demanded sweeping anti-graft reforms before Kiev can join them.
Ukrainian President Volodymyr Zelensky was elected on anti-corruption promises in 2019, long before Russia’s full-scale invasion of Ukraine in February 2022.
Both the president and his aides portrayed the recent dismissals of senior officials, particularly Ivan Bakanov, the former head of the State Security Service, in July 2022, as evidence of their efforts to stamp out graft.
Security officials say the current investigation dates back to August 2022, when officials signed a contract for artillery shells worth 1.5 billion hryvnia ($39.6 million) with arms company Lviv Arsenal.
After receiving payment, the company’s employees were supposed to transfer the money to a company registered abroad, which would then deliver the ammunition to Ukraine.
“However, the goods were never delivered, and instead the money was sent to various accounts in Ukraine and the Balkans,” investigators said.
The Ukrainian prosecutor said that the money has since been confiscated and will be returned to the country’s defense budget.
