Ukrainian Intelligence Finds A Corruption Scheme For Procurement Of Weapons Worth 40 Million US Dollars

JAKARTA - Ukraine's main intelligence agency (SBU) said it had succeeded in finding a mass corruption scheme in the purchase of weapons by the country's military amounting to nearly $40 million (1.5 billion hryvnia Ukraine).

The SBU said the embezzlement involved purchasing 100,000 mortars for the Ukrainian Armed Forces in the fall of 2022, reported by CNN January 29.

Ukraine's Ministry of Defense paid almost the entire fund to arms supplier Lviv Arsenal. However, SBU said the ammunition was never received. Instead, it said some of the funds had been transferred to foreign accounts, including in the Balkans.

The investigation found that former high-ranking defense officials, chief and commercial chief Lviv Arsenal, and representatives of foreign commercial groups were involved in the scam.

The disclosure of a massive corruption scheme will have consequences for Ukraine, as the country continues to fight a relentless Russian invasion while trying to pave the way for the European Union, which makes eradicating corruption a prerequisite for future Ukraine's membership.

Yurii Zbitnev, CEO of Lviv Arsenal, told local media the person in charge of the ammunition contract had been sacked and the company is working closely with the defense ministry to return the funds to the country, so they can be "used for a more appropriate purpose."

SBU said five people had been indicted. One of them, a former defense ministry official, was detained while trying to cross the Ukrainian border. It said authorities were trying to detain other suspects and those charged could face a sentence of up to 12 years in prison.

"The Ministry of Defense continues to fight without compromise against those who embezzle weapons procurement funds. We have no place for corrupt officials," said Ukrainian Deputy Defense Minister Dmytro Klymenkov.

Ukraine has been hit by a corruption scandal involving its defense ministry in recent years.

In December, a senior Ukrainian defense ministry official was detained on charges of embezzlement worth 1.5 billion hryvnia ($40 million) in a separate case related to an artillery shell contract.

The report comes just months after Ukrainian President Volodymyr Zelensky dismissed all officials responsible for regional military recruitment centers. In September, he also sacked Defense Minister Oleksii Reznikov, citing the need for a new approach amid a continuing scandal.