Ukraine uncovers mass fraud in weapons procurement, On Saturday, Ukraine’s SBU security service revealed the exposure of a corruption scheme involving the purchase of arms by the country’s military, amounting to approximately $40 million.
The disclosure of this widespread procurement fraud, corroborated by Ukraine’s Defense Ministry, carries significant implications in a nation grappling with Russia’s nearly two-year-old invasion.
The ongoing battle against widespread corruption poses a significant challenge as Ukraine endeavors to gain European Union membership.
The Security Service of Ukraine (SBU) reported that an investigation has brought to light the involvement of “officials from the Ministry of Defense and executives of the arms supplier Lviv Arsenal, who misappropriated almost 1.5 billion hryvnias in the procurement of shells.”
As per the investigation findings, both former and current high-ranking officials of the Ministry of Defense, along with leaders of affiliated companies, are implicated in the embezzlement scheme.
Money paid, but no arms received in return!
According to reports, embezzlement has been uncovered, specifically related to the acquisition of 100,000 mortar shells for the military. The Security Service of Ukraine (SBU) disclosed that a deal for the shells was finalized with Lviv Arsenal in August 2022, marking six months into the war.
Payment was made upfront, including transfers to foreign accounts. However, despite the transaction, no arms were delivered as per the statement. Subsequently, it revealed that some of the funds were redirected to other foreign accounts.
The announcement disclosed that five individuals, both from the ministry and the arms supplier, have received “notices of suspicion,” marking the initial stage in Ukrainian legal proceedings. Notably, one suspect was apprehended while attempting to cross the Ukrainian border.
Corruption within the military poses a delicate issue in Ukraine, particularly as the nation endeavors to uphold wartime public morale and make a case for its EU membership. Last September, Defense Minister Oleksii Reznikov, despite having a strong reputation in representing Ukraine in talks with Western allies, was dismissed due to various corruption cases.
While he wasn’t personally implicated in corruption, multiple instances emerged during his tenure, including issues related to supplying troops with food and procuring suitable clothing for servicemen.
The SBU said a contract for the shells was clinched with Lviv Arsenal in August 2022 – six months into the war – and payment was made in advance, with some funds transferred abroad.
But no arms were ever provided, the statement said, with some funds then moved to other foreign accounts.
The statement said five individuals had been served “notices of suspicion” – the first stage in Ukrainian legal proceedings – both in the ministry and the arms supplier. One suspect, it said, was detained while trying to cross the Ukrainian border.