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Colonel, Lviv businessman exposed in defence procurement kickback scheme

A military official was to receive a bribe of almost $45,000 from a businessman in return for which he promised to sign a contract for the supply of defence goods to the Armed Forces of Ukraine. 

Colonel, Lviv businessman exposed in defence procurement kickback scheme
Detention on bribes
Photo: SBU

The head of the department of the Armed Forces Support Command and his accomplice, the CEO of a Lviv-based defence supplier, were exposed in the embezzlement scheme. Both were detained red-handed, the SBU said.

According to the investigation, the Armed Forces colonel and the head of the Lviv company set up a kickback scheme when signing contracts for defence orders. The military official was to receive a bribe of almost $45,000 from the businessman in return for which he promised to sign a contract for the supply of defence goods to the Armed Forces.

"The SBU detained both defendants during the transfer of the first "tranche" - $14,600. At the same time, the amount of the businessman's planned deal with the Armed Forces was UAH 36 million," the statement said.

Law enforcement officers blocked the deal and prevented further fraud with budget funds. 

During more than 30 searches at the suspects' workplaces and residences in Kyiv and Lviv, the money was seized:

  • computers, mobile phones, electronic data storage devices, documents and draft accounting records with evidence of the criminal scheme
  • almost UAH 10 million in cash, the origin of which is being established.

Currently, both detainees have been served a notice of suspicion under two articles of the Criminal Code of Ukraine: Part 3 Article 368 (acceptance of an offer, promise or receipt of an unlawful benefit by an official), Part 3 Article 369 (offer, promise or provision of an unlawful benefit to an official). 

The court imposed on them a custody with the right to be released on bail in the amount of UAH 10 million each. The offenders face up to ten years in prison with confiscation of property. 

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