25 October 2016

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Director of Europe's only spongy titanium producer detained in anti-corruption drive in Ukraine

Agents from the National Anti-Corruption Bureau of Ukraine (NABU) have detained the director of Europe's only spongy titanium producer, Zaporizhia Titanium and Magnesium Combine (ZTMC), which is part of Dmytro Firtash's Group DF.

Photo from UNIAN
The operation was carried out jointly with the SBU and anti-corruption prosecutors / Photo from UNIAN

The operation was carried out in cooperation with the SBU Security Service division in Zaporizhia region and under the guidance of the Specialized Anti-Corruption Prosecutor's Office, the NABU press service said.

The detention was part of a larger investigation launched by NABU agents in June 2016 into the abuse of office by the combine's officials, which caused the large-scale embezzlement of funds, the NABU press service said.

NABU detains Ukrzaliznytsia branch official for misappropriating more than UAH 13 mlnThe NABU suspects the director of committing crime under Part 5 of Article 191 of the Criminal Code of Ukraine (embezzlement of property or taking possession of it through abuse of office).

Investigators established that co-owner of the enterprise TOLEXIS TRADING LIMITED allocated UAH 880 million in 2014-2015 for the modernization of production facilities under an agreement on the establishment of LLC ZTMC on the basis on the combine. Yet, the ZTMC's director, abusing his official position, embezzled more than half of the received funds (UAH 492 million). The money was transferred to third parties, particularly, PJSC Holding Company Energomerezha, PJSC Zaporizhiaoblenergo, PJSC Commercial Bank Nadra, and LLC Syntez Resurs, as repayment of the plant's debts.

NABU verifies information in Shokin's tax returnHowever, the debts had to be repaid by TOLEXIS TRADING LIMITED, which undertook this commitment when LLC ZTMC was created.

Should the director be found guilty, he faces imprisonment from 7 to 12 years with confiscation of property and deprivation of the right to occupy certain positions or engage in certain activities for up to three years.

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