Inflated the cost of raw materials for fortifications: ESBU sent the case of misappropriating nearly 14.5 million UAH to court

 Nearly 14.5 million UAH in budget funds were misappropriated while procuring wire to manufacture barriers for fortification construction in the Zaporizhzhia region. Three members of an organized group will stand trial: the former director of a penitentiary system enterprise, the enterprise's commodity expert, and the director of a private company.

Detectives of the Main Detectives Unit of the Economic Security Bureau of Ukraine completed the pretrial investigation and forwarded the indictment to court.

The investigation established that in January 2024, the state enterprise concluded a contract with the Capital Construction Department of the Zaporizhzhia Regional State Administration for the supply of low-visibility obstacles and "Yehoza" barrier lines. These barriers were intended for the equipment of military engineering, technical, and fortification structures on the territory of the region.

The former director of the state enterprise organized a scheme to misappropriate budget funds during the procurement of raw materials for the manufacturing of barriers. To implement it, he involved the commodity expert of the enterprise and the head of a private company. Responsibilities were distributed among the participants, and procurements were conducted through controlled enterprises.

The director of the private company ensured the entry of false information regarding the cost of the wire into the contracts. At the same time, officials of the state enterprise prepared, approved, and signed fictitious documentation on the procurement of raw materials at artificially inflated prices. In this manner, the members of the group created the appearance of legitimate use of budget funds.

In fact, the controlled suppliers purchased the wire directly from manufacturing enterprises at market prices. Excess funds received from the state enterprise were transferred to the accounts of other controlled structures at the direction of the organizer. At the same time, no actual delivery of goods took place under these transfers.

During February–December 2024, the participants of the scheme misappropriated the funds of the state enterprise for a total amount of nearly 14.5 mln UAH.

The suspects are accused of misappropriation and embezzlement of property by abuse of official position, especially in large amounts, as well as of official forgery. The actions of each have been qualified according to his role in the commission of criminal offenses under Part 5 of Article 191 and Part 1 of Article 366 of the Criminal Code of Ukraine, taking into account the provisions of Article 27 and Article 28 of the Criminal Code of Ukraine. The indictment regarding three members of the organized group has been forwarded to court.

Procedural guidance is carried out by prosecutors of the Office of the General Prosecutor. The Security Service of Ukraine and the State Criminal-Executive Service of Ukraine joined in exposing the scheme.

According to Article 62 of the Constitution of Ukraine, a person is considered innocent of committing a crime until their guilt is proven in accordance with the law and established by a court verdict.