This story is free to read because readers choose to support LAist. If you find value in independent local reporting, make a donation to power our newsroom today.
Ukraine says corrupt officials stole $40 million meant to buy arms for the war
FILE - A Ukrainian serviceman of the 3rd Assault Brigade fires a 122mm mortar towards Russian positions at the front line, near Bakhmut, Donetsk region, Ukraine, Sunday, July 2, 2023. 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.
(
Alex Babenko
/
AP
)
KYIV, Ukraine — 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.
The SBU said late Saturday that five people have been charged, with one person detained while trying to cross the Ukrainian border. If found guilty, they face up to 12 years in prison.
The investigation comes as Kyiv attempts to clamp down on corruption in a bid to speed up its membership in the European Union and NATO. Officials from both blocs have demanded widespread anti-graft reforms before Kyiv can join them.
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. Both the president and his aides have portrayed the recent firings of top officials, notably that of Ivan Bakanov, former head of the State Security Service, in July 2022, as proof of their efforts to crack down on graft.
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.
After receiving payment, company employees were supposed to transfer the funds to a business registered abroad, which would then deliver the ammunition to Ukraine.
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.
Sponsored message
Copyright 2024 NPR. To see more, visit https://www.npr.org. 9(MDA1OTI3MjQ5MDEyODUwMTE2MzM1YzNmZA004))
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive from readers like you will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive from readers like you will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
