Ukraine’s security service uncovers big state property privatization corruption scheme
SBI officers have served the deputy head of the Federation of Trade Unions of Ukraine (Photo:SBU press office)
Ukraine’s SBU security service and the State Bureau of Investigation (SBI) have uncovered an illegal state property privatization scheme that bilked the state out of UAH 25 billion ($683.6 million), the agencies reported on Dec. 13.
SBI officers have served the deputy head of the Federation of Trade Unions of Ukraine (FPU), Viktor Saienko, with charge papers. Saienko has been charged with participating in the illegal sale of property worth over UAH 138 million ($3.7 million).
“Together with SBU officers, it was documented that in 2019, the deputy head of the FPU, together with other officials, made a decision on the illegal expropriation of a state resort hospital building in Kyiv in favour of a private enterprise,” the SBI said.
The SBI said that according to assessors, the hospital building was valued at UAH 138.3 million, but it was sold “at a much lower price.” Moreover, the agency said the relevant building “wasn’t subject to sale at all.”
Meanwhile, according to the SBU, in addition to Saienko, four former top officials of the Main Department of Communal Property of Kyiv City State Administration are also involved in the scheme.
The suspects engaged in the illegal “removal” of social institutions from state ownership for their subsequent sale and obtaining shadow income. The appropriated real estate includes Ukrainian sanatoriums, rehabilitation centers, as well as educational and sports institutions.
The SBU officers said they had already handed over 230 illegally privatized institutions to the Asset Recovery and Management Agency of Ukraine.
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