ESBU detectives have referred a case to court regarding the embezzlement of over UAH 5.5 million during the sham procurement of FPV drones and EW systems

 Detectives of the Main Detective Division of the Economic Security Bureau of Ukraine have completed a pre-trial investigation in criminal proceedings against three members of an organized crime group who embezzled funds from the Sievierodonetsk city territorial community during sham procurements of military equipment. The indictment has been referred to the court.

The investigation established that a private entrepreneur organized a criminal scheme to seize budget funds. To implement it, he involved a number of controlled commercial structures, the director of a municipal enterprise that conducted the procurements, the heads of companies that carried out fictitious deliveries, and other individuals.

The entrepreneur initiated the creation of forged request letters on behalf of military units regarding the need to purchase FPV drones and mobile anti-drone EW systems. Subsequently, these documents were sent to the Sievierodonetsk City Military Administration and handed over to a municipal enterprise to organize the procurement.

To create the appearance of a competitive tender process, bid proposals from various companies controlled by the scheme's organizer were submitted to the municipal enterprise. As a result, pre-determined firms were selected as the winners of the tenders.

Actions of this nature can have serious legal consequences, often investigated as fraud and embezzlement, especially when involving military supplies. Law enforcement agencies typically investigate such cases thoroughly to uncover the full extent of the scheme and identify all involved parties. Efforts to combat corruption in procurement processes, particularly concerning essential defense resources, are crucial for national security and public trust.

In total, the director of the municipal enterprise transferred over UAH 5.5 million to the accounts of two companies for the allegedly purchased military equipment. Subsequently, these funds were transferred to the accounts of controlled companies, converted into cash, and distributed among the members of the organized group.

The damages caused to the Sievierodonetsk city territorial community have been confirmed by an expert's conclusion following a forensic economic examination.

ESBU detectives have notified the private entrepreneur who organized the scheme of suspicion under Part 3 of Art. 27 and Part 5 of Art. 191 of the Criminal Code of Ukraine (misappropriation and embezzlement of property under martial law, on an especially large scale, as an organizer within an organized group).

The director of the municipal enterprise and the directors of the supplier companies were notified of suspicion under Part 2 of Art. 27 and Part 5 of Art. 191 of the Criminal Code of Ukraine (misappropriation and embezzlement of property under martial law, on an especially large scale, as accomplices within an organized group). The indictment has been referred to the court.

Procedural oversight is being provided by prosecutors of the Specialized Defense Prosecution of the Eastern Region under the Office of the Attorney General.