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HomeWorldThe Ministry of Defense...
December 22, 2023

The Ministry of Defense discovered a scheme to inflate the cost of artillery shells by 1.5 billion hryvnia

By David
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    The SBU and the Ministry of Defense eliminated a corruption scheme for the purchase of ammunition for the Armed Forces of Ukraine for almost 1.5 billion UAH.

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    .

    The head of one of the main departments of the Ministry of Defense, who last year signed an agreement with a special export company for the purchase of a wholesale batch of artillery shells, was detained.

    Later, the Ministry of Defense concluded a more profitable contract, but the official arbitrarily extended the preliminary agreement and transferred him an amount that was 30% more than the cost of the products.

    According to the investigation, an official of the Ministry of Defense in December last year signed an agreement with a special export company to purchase a wholesale batch of artillery shells for Ukrainian defenders.

    But then budget funds were not transferred to the accounts of the special exporter.

    Once again, the Defense Procurement Agency of the Ministry of Defense subsequently concluded a more profitable contract for the supply of the same artillery shells with the same manufacturer.

    The new agreement, unlike the previous one, provided for the purchase of ammunition directly from the manufacturer without intermediaries, which significantly shortened the delivery time of the product and reduced its cost.

    However, the defendant, neglecting the contract of the Defense Procurement Agency, unreasonably extended the preliminary agreement with the special exporter enterprise.

    Moreover, after the extension of the old contract, almost UAH 1.5 billion was transferred to the accounts of an affiliated foreign intermediary company. This amount was 30% higher than the cost of products under a direct contract with the manufacturer.

    The Ministry of Defense is taking measures to return the embezzled almost 1.5 billion UAH to the budget of Ukraine. The investigation is ongoing. The perpetrator faces up to 15 years in prison.

    The Ministry of Defense clarified that searches began this morning in the office premises of the Progress enterprise and the Main Directorate. All ministry employees who were involved in this contract will undergo a polygraph test.

    Source: Racurs

    David
    David

    I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.

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