REUTERS
The enterprise earlier received funding from Ukraine's Defense Ministry to purchase a batch of small arms from Western partners.
The SBU Security Service of Ukraine says it suspects the former director of the Ukrainian state-run Ukroboronprom Concern's enterprise of causing almost UAH 5 million (US$179,340) in damage to the state.
In particular, the enterprise earlier received funding from Ukraine's Defense Ministry for the purchase of a batch of small arms from Western partners. However, the head of the state-owned enterprise illegally used the funds for other purposes, the SBU's press service said on July 23.
A breached contract and European partners' lawsuit
According to law enforcers, prices of products contracted by the Defense Ministry increased during the illegal transaction involving state budget money in 2017.
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"As a result of the official's actions, the timely payment under the contract failed, so the implementation of the international economic contract was disrupted, which led to the non-fulfillment of the state order for the purchase of weapons. The official's illegal actions led to a lawsuit being lodged by European partners to impose penalties on the enterprise for non-compliance with contractual terms," the press service said.
Sums involved
SBU Scientific and Research Institute of Special Equipment and Forensic Expertise has officially confirmed that the actions by the official inflicted UAH 5 million in losses to the enterprise.
SBU operatives raided the suspect's residence and office. Ex-official's actions have been qualified under Part 2 of Article 367 (neglect of official duty that caused any grave consequences) of the Criminal Code of Ukraine.
Background
In February 2020, law enforcers raided the state-run Ukroboronservice, part of Ukroboronprom Concern, within the probe into the actions by former heads of one of the exporting firm.
The raids followed an internal investigation by the newly-appointed management of the Concern made in late 2019. The official investigation revealed significant abuses by the company's former management in 2017-2019.
The investigation materials were forwarded to law enforcement agencies and became the basis for the initiation of criminal proceedings on the grounds of committing crimes under said Part 2 of Article 367, and Part 4 of Article 191 (misappropriation, embezzlement or conversion of property by malversation) of the Criminal Code of Ukraine.