Unlawful procurement activities in BPL and REB: apprehension of a legislator with a 30 million bail
Ukraine: Corruption Allegations Surrounding Defense Funds and UAV Procurement
In a shocking turn of events, a corruption scandal has erupted in Ukraine, involving high-ranking officials, including MP Oleksiy Kuznetsov, a member of the "Servant of the People" party. The alleged scheme, which has been under investigation by the Anti-Corruption Prosecutor’s Office (SAPO) and the National Anti-Corruption Bureau of Ukraine (NABU), centres around the fraudulent inflation of state contracts for the procurement of unmanned aerial vehicles (UAVs or drones) and electronic warfare (EW) systems.
The organized group, which also includes a former Luhansk governor and heads of district administrations, is accused of systematically appropriating budget funds intended for the needs of the defense forces. They allegedly awarded government contracts to suppliers at artificially inflated prices, with up to 30% of the contract value returned as unlawful kickbacks to the perpetrators.
One notable example of this price manipulation occurred when a military unit signed a $239,000 contract for drones, which included an overpayment of $80,000 due to price inflation. Similar methods were used to overprice electronic warfare equipment contracts.
MP Oleksiy Kuznetsov has been arrested and ordered to pay bail of approximately $720,000, and his membership in the "Servant of the People" parliamentary faction has been suspended pending investigation. Other detainees include Serhii Haidai, former head of Luhansk Regional State Administration, Andrii Yurchenko, head of Luhansk Oblast’s Rubizhne district, and a National Guard member.
The beneficial owner and director of the UAV production enterprise are additionally charged with obstructing the lawful activities of the Armed Forces of Ukraine. The group is also suspected of receiving up to 30% of the contract sum as an illegal benefit for signing contracts with inflated prices.
This scheme represents a significant misuse of public funds intended for Ukraine’s military defense during the ongoing conflict with Russia, impairing defense procurement integrity. The Anti-corruption Prosecutor’s Office has announced suspicions against several individuals for their involvement in this corruption scheme.
Notably, MP Kuznetsov voted for the controversial bill No12414 with amendments that effectively subordinated independent anti-corruption bodies to the prosecutor general. The head of the "Servant of the People" faction in the Verkhovna Rada, David Arakhamia, stated that the membership of people's deputy Alexei Kuznetsov in the "Servant of the People" faction would be suspended during the investigation.
The investigation into this corruption scandal is ongoing, and further developments are expected in the coming days. The Ukrainian government and anti-corruption agencies are working diligently to uncover the extent of this scheme and bring those responsible to justice.
[1] Ukraine's Anti-Corruption Bureau Exposes Corruption in UAV and EW Systems Procurement
[2] MP Oleksiy Kuznetsov Arrested in Ukraine Corruption Scandal
[3] Former Luhansk Governor Accused in Ukraine Corruption Scandal
[4] NABU and SAPO Announce Corruption Investigation into UAV and EW Systems Procurement
[5] Ukraine's President and Anti-Corruption Officials Alerted to Corruption Scandal
[1] Ukraine's Politics and General-News sectors are abuzz with the Anti-Corruption Bureau's exposure of a corruption scandal involving UAV and EW systems procurement.
[2] Crime-and-Justice discourse intensifies as MP Oleksiy Kuznetsov is arrested, accused of inflating state contracts for UAVs and EW systems in a multi-million dollar corruption scheme.
