January 28, 2024
2 mins read

Ukraine uncovers mass fraud in weapons procurement

The fight to root out endemic corruption remains a major issue as Ukraine presses its bid to secure membership in the European Union…reports Asian Lite News

Ukraine’s SBU security service said on Saturday it had uncovered a corruption scheme in the purchase of arms by the country’s military totalling the equivalent of about $40 million.

The announcement of mass procurement fraud, confirmed by Ukraine’s Defense Ministry, will have a huge resonance in a country beleaguered by Russia’s nearly two-year-old invasion.

The fight to root out endemic corruption remains a major issue as Ukraine presses its bid to secure membership in the European Union.

The SBU said an investigation had “exposed officials of the Ministry of Defense and managers of arms supplier Lviv Arsenal, who stole nearly 1.5 billion hryvnias in the purchase of shells.”

The company was said to be founded by Yurii Zbitniev, who became one of the youngest members of the Soviet-era unicameral parliament of Ukraine, known Verkhovna Rada, in 1990.

“According to the investigation, former and current high-ranking officials of the Ministry of Defense and heads of affiliated companies are involved in the embezzlement.”

The embezzlement, it said, involved the purchase of 100,000 mortar shells for the military.

The SBU said a contract for the shells was clinched with a little-known company called Lviv Arsenal in August 2022 — six months into the war — and payment was made in advance, with some funds transferred abroad.

But no arms were ever provided, the statement said, with some funds then moved to other foreign accounts.

The statement said five individuals had been served “notices of suspicion” — the first stage in Ukrainian legal proceedings — both in the ministry and the arms supplier. One suspect, it said, was detained while trying to cross the Ukrainian border.

A report by the online site Ukrainska Pravda on Jan. 26, 2024, said Ukraine’s Northern Commercial Court of Appeal has upheld the decision of the first instance court to recover 1.5 billion hryvnias (about US$40.7 million) in favor of the Ministry of Defense from Lviv Arsenal company.

It said the Kyiv Commercial Court is also considering a court case on the additional recovery of 163.5 million hryvnias (about US$4.4 million) in penalties in favor of the defense ministry.

“As part of this case, bank accounts and other movable and immovable property belonging to Lviv Arsenal were seized,” the report said.

ALSO READ: Russia Says Ukraine Shot Down Plane Over Belgorod

Previous Story

20,000 march in Madrid against Gaza ‘genocide’

Next Story

Texas challenges Federal govt on border issue

Latest from -Top News

Piyush Goyal Heads to Doha for Trade Talks

During the visit, both sides are expected to discuss the proposed India–Qatar Free Trade Agreement (FTA)….reports Asian Lite News Union Commerce and Industry Minister Piyush Goyal will travel to Doha, Qatar, on

Jaishankar Hints at Tariff Deal with US

Jaishankar explained that the ongoing trade tensions largely stem from the inability of both sides to reach a common ground on several issues….reports Asian Lite News External Affairs Minister S. Jaishankar on

Rajnath Singh Heads to Australia for Key Defence Talks

The visit comes at a historic moment when India and Australia commemorate five years of establishment of India-Australia Comprehensive Strategic Partnership…reports Asian Lite News Defence Minister Rajnath Singh will visit Australia from

California Takes Trump to Court

Trump claimed that the deployment of federalized troops was necessary because the city of Portland was under siege…reports Asian Lite News California Governor Gavin Newsom said the state will sue the Trump

Hamas Heads to Egypt for Gaza Talks

The negotiation will focus on the details of enacting the first phase of the plan…reports Asian Lite News A delegation from the Palestinian group Hamas arrived in Egypt on Sunday ahead of
Go toTop

Don't Miss

Ruble crashes as Russia launches attacks on Ukraine

The Russian central bank added that the country’s financial institutions

US to send long-range rocket system to Ukraine

The government is providing Ukraine with high mobility artillery rocket