Embezzlement of UAH 14.6 million in state funds at a penitentiary institution: suspects notified of suspicion

 Detectives of the Main Detective Unit of the Economic Security Bureau of Ukraine, in cooperation with the Security Service of Ukraine, under the procedural guidance of the Prosecutor General's Office and in coordination with the State Penitentiary Service of Ukraine, have uncovered a large-scale scheme for the misappropriation of budget funds at a correctional facility in Zaporizhzhia. The state suffered losses amounting to UAH 14.6 million.

The investigation established that throughout 2024, the acting head of the penitentiary institution embezzled state funds during the procurement of goods intended for the production of security barriers. He acted in conspiracy with a subordinate employee and representatives of a private enterprise.

The case involves the procurement of wire at inflated prices, which was subsequently used to manufacture spiral barbed wire. The total value of the signed contracts exceeded UAH 66.4 million.

However, the actual market value of the products was significantly lower, and the price difference was transferred to the accounts of a controlled private enterprise.

According to expert conclusions, the total damage caused to the state amounts to UAH 14.6 million.

It was also established that the state enterprise failed to comply with public procurement procedures and did not publish information in the "Prozorro" system, which facilitated the execution of the criminal scheme.

The suspects have been notified of suspicion under Article 191, Part 5 of the Criminal Code of Ukraine (misappropriation or embezzlement of property through abuse of office, committed by a group of persons by prior conspiracy, on an especially large scale).

The pre-trial investigation is ongoing. Efforts are underway to identify other individuals involved in the offense and to investigate additional episodes of potential criminal activity.