The Security Service of Ukraine searched several offices in an office building in Kyiv on Aug. 22 while investigating an IT company associated with KM Core holding.
The search interrupted the work of the dozens of other companies working under the umbrella of the IT and investment holding KM Core, including De Novo, Politeda, Borsch Ventures, KM Labs and KM Techno.
The Security Service came to the building at 1/3 Pivnichno-Syretska St. in the western part of Kyiv to find an IT company called UARMS, investigated for embezzlement of state funds.
The authorities say that UARMS failed to provide the state with an accurate report of completion on tender obligations to develop structural analysis program (SAP) for UkrGasVydobuvannya, a state-owned gas company.
The authorities has closed the whole office building to find evidence of UARMS alleged embezzlement. The State Security Service would not comment on it at the moment.
KM Core CEO Evgeni Utkin says that the State Security Service officers shut the building and wouldn’t let anyone in or out while they searched every office looking for UARMS.
According to Utkin, UARMS is a subsidiary company of the KM Core holding that never received any state money, never participated in a state tender and has only two employees. At the same time, a state registry of companies shows Utkin as the beneficiary of UARMS.
Utkin says that he will look to sue the state for the improper search.
“They inefficiently use my (tax) money,” Utkin told the Kyiv Post. “Besides, it scares away investors, demoralizes and demotivate people who still want to do something for (Ukraine).”
Kyiv Post staff writer Denys Krasnikov can be reached at [email protected]. The Kyiv Post’s IT
coverage is sponsored by Beetroot, Ciklum and SoftServe. The content is independent of the donors.
