In a startling revelation, Ukraine’s Security Service (SBU) has exposed a massive corruption scheme in the procurement of weapons by the country‘s military, amounting to nearly $40 million (1.5 billion Ukrainian hryvnia).
The SBU disclosed that the corruption involved the acquisition of 100,000 mortar rounds for Ukraine’s Armed Forces during the fall of 2022.
Despite the Defense Ministry transferring almost all of the funds to the arms supplier, Lviv Arsenal, the SBU reported that the purchased ammunition was never delivered. Shockingly, it was revealed that some of the funds had been diverted to foreign accounts, including those in the Balkans.
The investigation implicated former and current high-ranking defense officials, the head and chief commercial officer of Lviv Arsenal, and a representative of a foreign commercial group in the fraudulent activity.
This discovery of a large-scale corruption scheme poses significant consequences for Ukraine as it confronts Russia’s ongoing invasion while aspiring to join the European Union. The EU has set combating corruption as a crucial condition for Ukraine’s prospective membership.
Yurii Zbitnev, CEO of Lviv Arsenal, informed local media that the individual responsible for the ammunition contract had been terminated. The company is actively collaborating with the defense ministry to return the misappropriated funds to the state for more appropriate use.
The SBU confirmed that five individuals have been indicted, with one of them, a former defense ministry official, apprehended while attempting to cross the Ukrainian border. Authorities are actively pursuing the detention of other suspects, and those charged may face up to 12 years in prison.
In response to the developments, Ukraine’s Deputy Defense Minister, Dmytro Klymenkov, asserted, “The Ministry of Defence continues to fight uncompromisingly against those who embezzle from weapons procurement. We have no place for corrupt officials.”
Ukraine has been grappling with corruption scandals involving its defense ministry in recent years. In December, a senior defense ministry official was detained over allegations of embezzling 1.5 billion hryvnia ($40 million) in a separate case related to an artillery shells contract.
These revelations come amidst increasing pressure from the United States on Ukrainian President Volodymyr Zelensky to take decisive action against government corruption. Washington has reportedly issued notices to Kyiv, linking certain economic aid to Ukraine’s progress in instituting reforms and combating corruption.
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