Ukrainian authorities have accused current and former Justice Ministry officials of embezzling Hr.10 million ($241,000) during a project to upgrade the ministry’s IT systems.
The scheme was reportedly related to a procurement contract in 2021.
In a Thursday press release, the Security Service of Ukraine (SBU) said the contract to buy the software and hardware to digitize the ministry’s systems, at Hr.19 million ($458,500), was inflated at prices “many times” above average market prices.
Former and current officials were among the suspects, including the former state secretary of the ministry and the current department heads and their deputies.
“The investigation found that officials had misappropriated budget funds allocated for the purchase of server equipment and software for the Ministry of Justice. This hardware and software complex was supposed to modernize the department’s electronic systems,” the press release says.
“According to the investigation, in 2021, the defendants initiated the conclusion of a contract with an affiliated private company for the purchase of new servers and software for the Ministry of Justice for Hr.19 million,” it adds.
As such, the losses to the state budget amounted to approximately Hr.9 million ($217,182).
The case was uncovered in collaboration with the National Anti-Corruption Bureau of Ukraine (NABU) and the newly appointed Minister of Justice, the SBU said.
Herman Halushchenko, the former energy minister, assumed the position of justice minister in July following the government reshuffle.
The officials involved, as well as three managers contracted at the private firm, received a suspicion notice for large-scale embezzlement. The suspects face up to 12 years in prison with confiscation of property.
The case followed President Volodymyr Zelensky’s earlier decision to introduce – and later reverse – bills that strip NABU of its independence, citing alleged Russian ties of top NABU officials. The move sparked nationwide protests.
The SBU conducted the raids on NABU’s offices a day before the controversial bill was passed, with the officials with alleged Russian ties later arrested by the SBU.