Ukraine’s Investigation Uncovers Hr.11 Million State Railway Embezzlement Scheme

Authorities said they had identified an “organized group” of nine, comprising officials and businessmen, in a Hr.11.4 million ($296,786) embezzlement scheme that sold pneumatic tools at an inflated price to Ukrzaliznytsia, Ukraine’s state-owned railway enterprise.

The leader of the group, a businessman, has been detained.

According to an investigation by the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP), the businessman appointed members to Ukrzaliznytsia’s management with the help of friendly officials, who then ensured the victory of the businessman’s company in winning the tenders for pneumatic tools between 2018 and 2021.

“As the investigation established, in 2018, the leader of the group, an entrepreneur, decided to establish control over the product and cash flows of JSC Ukrzaliznytsia to seize the company’s funds.

“For this, he turned to old acquaintances from among the representatives of the Government, and with their help he managed to appoint members of the group to management positions in JSC Ukrzaliznytsia,” read the NABU press release.

According to the NABU, the overpayment amounted to Hr.11.4 million ($296,786).

The group of nine consisted of “two leaders of an organized group,” six Ukrzaliznytsia officials and a company beneficiary, according to the NABU, and all of them have been notified of suspicion as per the current investigation.

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