In cooperation with the Commander-in-Chief of the Armed Forces of Ukraine, the SSU Military Counterintelligence and the State Bureau of Investigation uncovered a scheme to embezzle defence funds in the Chernihiv region. Throughout 2022, the suspects embezzled over 11 million Ukrainian hryvnia (USD 247,000) in budget funds intended for the procurement of generators for the Armed Forces of Ukraine.

According to the investigation, the commander of a military unit, his deputy and two directors of contractor companies were involved in the scheme.

The command of the restricted-access facility had entered into contracts with affiliated companies to purchase generators at inflated prices, with the difference being divided among the participants.

This involved the supply of generators totalling over UAH 400 million, intended to provide an autonomous power supply for Ukrainian troops on the front line.

An expert examination initiated by the law enforcement confirmed that the perpetrators had embezzled budget funds.

Furthermore, the generators were found to be unfit for their intended use as they required lubricant to operate, which had not been procured in accordance with the signed contracts.

Two military officials and their business associates have been notified of suspicion under Article 191.5 of the CCU (misappropriation, embezzlement or acquisition of property through abuse of office, committed on a particularly large scale or by an organised group).

The investigation is ongoing. The suspects face up to 12 years’ imprisonment with confiscation of property.

The operation was carried out under the procedural supervision of the Specialised Defence Prosecutor’s Office of the Central Region.