The Security Service of Ukraine (SBU) has detained top officials of the Luhansk Regional Military Administration who allegedly attempted to misappropriate UAH 5 million in public funds through government procurement.
According to the SBU website, those involved include the head of one of the administration’s departments and his deputy.
The officials allegedly created the appearance of competition during tenders for the payment of services and ensured that affiliated companies won the bidding process. In return, the organisers of the scheme received regular kickbacks from companies under their control in the form of monthly cash payments.
To conceal the origin of the money and disguise its hand-to-hand transfer, those involved used postal deliveries. The SBU documented such “parcels” being sent from Kropyvnytskyy and Transcarpathia.
SBU officers detained the head of the administration’s department, his deputy and an accomplice – the owner of an affiliated company.
During searches of the suspects’ premises, investigators seized mobile phones, computer equipment, handwritten notes containing kickback calculations and cash.
The suspects were charged with misappropriating property through abuse of office on a large scale under martial law. They face up to eight years in prison.