Detectives of the Economic Security Bureau of Ukraine served a notice of suspicion to the former head of a state-owned enterprise and three accomplices of misappropriation of public funds. The individuals attempted to purchase a power amplification module which is a component of an onboard radar station used in the SU-27 combat military aircraft.

A Kyiv court imposed a custodial measure of restraint on the co-organizer and the entrepreneur who supplied the faulty equipment. Another accomplice will be placed under house arrest.

The investigation established that the director of the state-owned enterprise entered into a criminal conspiracy with several individual entrepreneurs and signed a contract for the supply of a power amplification module for military equipment worth UAH 3.9 million. Since the supplier did not have such equipment, it was purchased from a third company which was also in a faulty condition.

Officials of the state-owned enterprise signed a property transfer certificate an invoice and a letter of guarantee for the faulty parts. Formally, the terms of the contract between the parties were fulfilled.

The company then forged certificates of acceptance and compliance with state standards for the delivered equipment.

Based on the forged documents, the accounting department of the state-owned enterprise Ukrainian Defense Industry transferred the first installment of almost UAH 1.9 million to the supplier which was more than 600 times the tax-free minimum income. Later they tried to cash out the money through shell companies. Thanks to the Bureau's detectives the remaining amount of the contract which is UAH 2 million was not transferred from the accounts of the state-owned enterprise.

For such actions the former director and three accomplices were served a notice of suspicion of committing a criminal offense under Part 5 Art. 191, Part 2 Art. 28, Part 1 Art. 366 of the Criminal Code of Ukraine.

The pre-trial investigation in the criminal proceedings is carried out by the Bureau's detectives, operational support is provided by the Security Service of Ukraine and procedural guidance is provided by prosecutors of the Prosecutor General's Office.