SBI uncovers UAH 64M embezzlement scheme in military equipment procurement

That is reported by the SBI and relayed by Ukrinform.

According to the SBI, the organizers of the scheme created artificial conditions to ensure that a “preferred” company would win government tenders.

The key figure in the case is the head of a department within the logistics management of the State Special Transport Service Administration. He enlisted several commanders from a military unit and representatives of a commercial company to participate in the fraud.

Between September and October 2024, officials inserted discriminatory terms into tender documentation to eliminate legitimate competition.

As a result, a pre-selected company won the bid — offering goods priced over ₴64 million higher than other participants.

Preliminary estimates suggest state losses may be significantly greater, as this company supplied equipment to more than 17 military units.

Law enforcement carried out searches at the suspects’ homes, government offices, and company headquarters in Kyiv, Kyiv region, and Cherkasy.

Investigators seized documents, digital storage devices, mobile phones, company stamps, and other evidence. Authorities also found millions in foreign currency, the origin of which is being verified.

The colonel who organized the scheme and three other military personnel have been formally charged with abuse of power during martial law, resulting in grave consequences.

The founder and manager of the commercial company were charged with complicity.

The charges carry a sentence of up to 12 years in prison.

A pre-trial investigation is ongoing to identify all circumstances and other possible suspects. Investigators plan to file motions with the court to apply preventive measures.