Ukrainian counterintelligence officials announced Thursday that Ukrainian authorities stole about $40 million intended for ammunition procurement in an embezzlement scheme uncovered in December 2023.
An unnamed head of Ukraine's Ministry of Defense (MoD) is alleged to have been the leader of a scheme to illegally transfer approximately 1.5 billion Swiss yen (US$39 million) to the MoD's overseas accounts for the purpose of purchasing artillery shells for the Ukrainian military. Ru. The announcement was made by the Security Service of Ukraine (SSU), a partner intermediary company. statement.
“This amount was 30% higher than the amount of the replacement contract awarded to the newly created Defense Acquisition Agency,” the statement reads in part.
The SSU noted in a statement that the stolen funds were state funds. The SSU reportedly worked with the Attorney General's Office and the Ministry of Defense to expose the scheme, recover the funds, and return them to the national budget.
The official and other suspects were arrested with the cooperation of the Ministry of Defense and sentenced to 15 years in prison, the SSU said.
The fraudulent transaction, for 100,000 mortar shells that were never delivered, occurred during former Defense Minister Oleksiy Reznikov's tenure, The Washington Post reported. report. Those allegedly involved in the project include Oleksandr Riyev, the former head of the Ministry of Defense's military technology policy, weapons and military equipment development department. The current head of the department, Mr. Thomas Nakkul. The report quoted Yuri Zvitnev, head of the Lviv Arsenal, an arms supplier, as saying, citing unnamed security officials. (Related: Biden administration pleads with Ukraine to get serious about fighting corruption)
The Ukrainian government has previously exposed other munitions-related corruption scandals that have led to dismissals and arrests. He was also trying to persuade the seemingly beleaguered international community to continue funding the war against the Russian invading forces.
Ukraine insisted it had a determined anti-corruption effort, responding to concerns that the country could be exposed to wrongdoing. The black hole of Western aid The Washington Post report added that it was to protect against Russian aggression.
Corruption is a sensitive issue in the country, as most Ukrainians know at least one Ukrainian military member and regularly donate their own money to purchase military weapons and supplies, the report says. points out.
