Ukraine’s National Anti-Corruption Bureau Uncovers $1.88 Million Theft from State-Owned Mines
19 March, 2020

Detectives from Ukraine’s National Anti-Corruption Bureau (NABU) have exposed a corruption scheme worth $1.88 million at state-owned mines, reports the Specialized Anti-Corruption Prosecutor’s Office.

Investigators say that from 2016 to 2018, a group of people organized de facto control over government purchases for three state-owned mines – Selydivvuhilya, Myrnohradvuhilya, and Shakhtopravlinnya Pivdennodonbaske #1.

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This group created purchase tenders, contacted potential suppliers, and determined the expected cost of purchase. Investigators established that in nearly 70 tenders the contract was received by a single company. These tenders relate to combustive and lubricating materials, spare parts for mining equipment, metal products, and mining cables. The company itself acted as a middleman, reselling products to the government at inflated prices after purchasing them on the open market – which prevented actual suppliers from having the opportunity to work with the state-owned businesses.

This company sold approximately $6.4 million worth of goods to the state-owned mines and caused the government to overpay by approximately $1.88 million.

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On March 16, people involved in this scheme were charged with forming a criminal group, participation in a criminal group, and theft. The suspects face sentences from 7 to 12 years’ imprisonment.