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CNN —Ukraine’s Security Service (SBU) said it has discovered a mass corruption scheme in the purchase of weapons by the country’s military amounting to nearly $40 million (1.5 billion Ukrainian hryvnia). Ukraine’s Defense Ministry paid nearly all of the funds to arms supplier Lviv Arsenal, but the SBU said the ammunition was never received. We have no place for corrupt officials.” Ukraine’s Deputy Defense Minister Dmytro Klymenkov said in a statement Saturday. Ukraine has been dogged by corruption scandals involving its defense ministry in recent years. In December, a senior Ukrainian defense ministry official was detained over allegations he had embezzled 1.5 billion hryvnia ($40 million) in a separate case involving an artillery shells contract.

Persons: SBU, Yurii Zbitnev, –, ”, Dmytro Klymenkov, Volodymyr Zelensky, Zelensky, Oleksii Reznikov, Washington Organizations: CNN, Ukraine’s Security, Ukraine’s Armed Forces, Ukraine’s Defense Ministry, Lviv Arsenal, European Union, Ministry of Defence, Defense, Officials Locations: Balkans, Ukraine, Ukrainian, United States, Kyiv

KYIV, Ukraine (AP) — Employees from a Ukrainian arms firm conspired with defense ministry officials to embezzle almost $40 million earmarked to buy 100,000 mortar shells for the war with Russia, Ukraine's security service reported. Ukrainian President Volodymyr Zelenskyy was elected on an anti-corruption platform in 2019, long before Russia’s full-scale invasion of Ukraine in February 2022. Security officials say that the current investigation dates back to August 2022, when officials signed a contract for artillery shells worth 1.5 billion hryvnias ($39.6 million) with arms firm Lviv Arsenal. However, the goods were never delivered and the money was instead sent to various accounts in Ukraine and the Balkans, investigators said. Ukraine’s prosecutor general says that the funds have since been seized and will be returned to the country's defense budget.

Persons: SBU, Volodymyr Zelenskyy, Ivan Bakanov Organizations: —, European Union, NATO, State Security Service, Lviv Arsenal Locations: KYIV, Ukraine, Ukrainian, Russia, Kyiv, Lviv, Balkans

☆ Ukraine Says It Uncovers Mass Fraud in Weapons Procurement
▼ + stars: | 2024-01-27 | by ( Jan. | At P.M. | ) www.usnews.com time to read: +2 min

(Reuters) - Ukraine's SBU security service said on Saturday it had uncovered a corruption scheme in the purchase of arms by the country's military totalling the equivalent of about $40 million. The announcement of mass procurement fraud, confirmed by Ukraine's Defence Ministry, will have a huge resonance in a country beleaguered by Russia's nearly two-year-old invasion. The fight to root out endemic corruption remains a major issue as Ukraine presses its bid to secure membership in the European Union. "According to the investigation, former and current high-ranking officials of the Ministry of Defence and heads of affiliated companies are involved in the embezzlement." Defence Minister Oleksii Reznikov was dismissed last September over various corruption cases despite enjoying a solid reputation in representing Ukraine in its discussions with Western allies.

Persons: Russia's, Oleksii Reznikov, Ron Popeski, Maria Starkova, Andrea Ricci Organizations: Reuters, Ukraine's Defence Ministry, European Union, Ministry of Defence, Lviv Arsenal, . Defence, Western Locations: Ukraine, Ukrainian

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