"Employees of a Ukrainian arms company conspired with Defense Ministry officials to embezzle nearly $40 million intended to purchase 100,000 mortar shells for the war with Russia," Ukraine's Security Service (SBU) said, Euronews reported. ".
The SBU said five people had been charged, with one person detained while trying to cross the Ukrainian border. If convicted, they face up to 12 years in prison.
The investigation comes as Kiev tries to crack down on corruption as it seeks to fast-track membership of the European Union and NATO. Officials from both blocs have demanded far-reaching anti-corruption reforms before Kiev joins them.
Ukrainian President Volodymyr Zelensky was elected on an anti-corruption platform in 2019, well before Russia's full-scale invasion of Ukraine in February 2022. Both the president and his aides touted the recent firings of senior officials, notably that of Ivan Bakanov, the former head of The State Security Service, in July 2022, as evidence of their efforts to tackle bribery.
Security officials say the current investigation dates back to August 2022, when officials signed a €36.45 million contract for artillery shells with the Lviv Arsenal arms company.
After receiving the payment, company officials were supposed to transfer the funds to a company registered abroad, which would then deliver the ammunition to Ukraine.
However, the goods were never delivered, and the money was sent to various accounts in Ukraine and the Balkans, according to the investigators. Ukraine's chief prosecutor says the funds have been confiscated and will be returned to the country's defense budget. /BGNES