ancer care corruption: NABU, SAPO expose UAH 231M medical equipment fraud

According to Ukrinform, SAPO reported this on Facebook.

"Under the procedural guidance of a SAPO prosecutor, NABU detectives have notified six individuals of suspicion. These include representatives of private entities and the National Cancer Institute," the statement reads.

The procurement of medical equipment for cancer patients resulted in losses exceeding ₴231 million (approx. $5.8 million).

Those charged include the de facto head of the largest group of business entities specializing in selling medical equipment in Ukraine, two trusted individuals representing privately owned companies controlled by the scheme's organizer, the acting director of an institution (who is also a regional council deputy), and two officials from the National Cancer Institute (titles at the time of the crime are specified).

Their actions are qualified under Articles 255 (parts 1–3) and 191 (part 5) of the Criminal Code of Ukraine.

During the pre-trial investigation, it was established that the de facto leader of the group — Ukraine’s largest supplier of medical equipment (ranging from syringe needles to linear accelerators, including MRI, CT scanners, ambulances, and various medical peripherals) — created a criminal organization. This group had won numerous public tenders.

He involved trusted individuals from his controlled companies and officials from the National Cancer Institute in executing the scheme. This became possible under the framework of the government program "Creating a Modern Clinical Base for Cancer Treatment at the National Cancer Institute."

The group aimed to control the entire procurement process: from appointing the Cancer Institute as the budget administrator to ensuring non-competitive victories for companies under the organizer’s control.

It was found that, to increase profits, the involved parties artificially inflated the prices of the medical equipment intended for the Institute.

The investigation revealed that price inflation reached up to 50% above the original cost. This was confirmed by a range of evidence gathered by law enforcement from 12 countries as part of international cooperation.

The implementation of this scheme during the modernization of the Cancer Institute into a modern clinical hospital enabled the misappropriation of ₴231,035,577.49 (approx. $5.8 million) during 2021–2022.

The pre-trial investigation is ongoing, and efforts continue to identify other individuals who may be involved in the crime.

As previously reported by Ukrinform, employees of the State Bureau of Investigation, together with the Security Service of Ukraine and with support from the National Guard command, uncovered a scheme in which an accountant from a military unit diverted part of soldiers’ pay to third-party accounts.