Ukraine Uncovers Mass Fraud in Weapons Procurement, Reports Reuters

Ukraine’s SBU security service announced on Saturday that it has uncovered a corruption scheme in military arms procurement totaling approximately $40 million. The revelation of this widespread fraud, which has been confirmed by the country’s Defence Ministry, is significant for Ukraine as it continues to face Russia’s ongoing invasion.

The commitment to combat deep-rooted corruption is a crucial aspect of Ukraine’s efforts to secure membership in the European Union. The SBU’s investigation revealed that officials from the Ministry of Defence and managers at arms supplier Lviv Arsenal were involved in the embezzlement of nearly 1.5 billion hryvnias related to the purchase of shells.

Investigators found that both former and current high-ranking officials from the Ministry of Defence and heads of related companies participated in the scheme. The embezzled funds were linked to a deal for the procurement of 100,000 mortar shells meant for the military.

The contract with Lviv Arsenal was finalized in August 2022, shortly after the war commenced, and payments were made upfront, with some funds being sent overseas. However, no arms were delivered, and a portion of the funds ended up in foreign accounts.

The SBU has issued “notices of suspicion” to five individuals, marking the initial phase of legal proceedings in Ukraine. One suspect was detained while attempting to flee the country.

Corruption within the military poses a particularly sensitive challenge for Ukraine, especially as it aims to uphold public morale during wartime and strengthen its case for EU membership. Following various corruption scandals, Defence Minister Oleksii Reznikov was dismissed last September despite a previously strong reputation in engaging with Western allies. Although he was not personally implicated in any wrongdoing, several cases emerged during his tenure, including issues related to the supply of food and appropriate clothing for servicemen.