The Specialized Anti-Corruption Prosecutor’s Office (SAPO) and the National Anti-Corruption Bureau of Ukraine (NABU) have exposed the First Deputy Minister of Agrarian Policy of Ukraine and the former Deputy Minister of Economy of Ukraine for misuse of UAH 62.5 million in the purchase of food to meet the needs of the state during martial law.
As reported in the SAPO telegram channel on Thursday, the food was intended as humanitarian aid for the needs of eight regions of Ukraine, as well as the city of Kyiv.
As established during the pre-trial investigation, in March 2022, the First Deputy Minister of Agrarian Policy and Food implemented a scheme that provided for the purchase of products for the needs of regional military administrations at the expense of Ukrzaliznytsia JSC from a controlled company at prices 2-3 times higher than market prices. The price overstatement was due to the purchase of products from a foreign manufacturer (Poland) through a controlled intermediary company. As a result of this scheme, from March to August 2022, Ukrzaliznytsia suffered losses in the amount of UAH 28.8 million.
A similar scheme was used to purchase food products from a foreign producer in Turkey through a controlled spacer firm. To ensure the purchase of products, the scheme also involved the then acting Deputy Minister of Economy, who concealed data on the availability of more favorable offers from other market participants, including Ukrainian producers, and also induced officials of regional administrations to illegally approve applications and invoices for the purchase of products from the controlled company.
Due to the operation of the scheme from March to August 2022, Ukrzaliznytsia suffered damage of another UAH 33.7 million, according to the SAP and NABU. After receiving payment, the money was transferred to a foreign company with signs of fictitiousness for further legalization.
The above-mentioned officials have been announced on suspicion, their actions are qualified under part 2 of article 364 of the Criminal Code of Ukraine “Abuse of power or official position”
The post of First Deputy Minister of Agrarian Policy and Food has been held by Taras Vysotskyy since May 26, 2021.
