Ex-Defense Ministry official caught by SBU for embezzling $25 million
SBU uncovers $25M embezzlement case in Ukraine’s Defense Ministry (Photo: SBU)
Ukraine’s Security Service uncovered a former Defense Ministry department head suspected of embezzling 1 billion hryvnias (about $25 million) in state funds, SBU said on Telegram on Aug. 1.
Ukraine’s Security Service (SBU) has charged a former defense official with embezzling state funds by organizing the purchase and delivery of bulk food supplies for the Armed Forces at inflated prices between March and December 2022.
According to investigators, the official signed a contract with a private company in spring 2022 that artificially increased the food prices by 41%, while logistics costs were inflated by 221%.
The SBU said the former Defense Ministry official failed to properly verify the pricing or consult the ministry’s relevant departments before approving the contract, resulting in significant losses to the state budget.
He has been formally notified of suspicion under Part 5 of Article 191 of Ukraine’s Criminal Code, which covers embezzlement on a particularly large scale. If convicted, he faces up to 12 years in prison and confiscation of assets.
Authorities are currently deciding whether to impose pretrial detention. The investigation is ongoing to identify and prosecute other individuals involved.
On July 4, Ukrainian media reported that former Defense Minister Oleksiy Reznikov’s property was searched in connection with the same food procurement case. Reznikov was dismissed on Sept. 5, 2023, following a series of corruption scandals related to military food pricing.
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