Major fraud in arms procurement uncovered in Ukraine, $40 million stolen

(Patria) - Ukraine's Security Service (SBU) said yesterday it had uncovered a corruption scheme in the army's procurement of weapons worth about $40 million, Reuters reported.

The announcement of a massive procurement fraud, confirmed by Ukraine's Defence Ministry, will have a huge impact in a country facing a nearly two-year-long Russian invasion.

The fight to eradicate endemic corruption remains a key issue as Ukraine pushes its bid to secure European Union membership.

The SBU said the investigation "exposed officials from the Defence Ministry and managers of the arms supplier Lviv Arsenal, who stole nearly 1.5 billion hryvnias in the purchase of mortar shells".

"According to the investigation, former and current senior officials of the Defence Ministry and heads of affiliated companies were involved in the malpractices," they stated.

The embezzlement, it is reported, involved the purchase of 100,000 mortar shells for the army.

The SBU said the contract for the shells was signed with Lviv Arsenal in August 2022, six months after the war began, and payment was made in advance, with some funds transferred abroad.

But the weapons were not delivered, the statement said, and some funds were subsequently transferred to other accounts abroad.

The statement said five people had been served "a notice of suspicion", the first stage of Ukraine's legal process, both within the ministry and at the arms supplier. One suspect, it is reported, was detained while trying to cross the Ukrainian border.

Corruption in the military has been a particularly sensitive issue in Ukraine as it tries to maintain wartime public morale and present its case for joining the 27-nation EU.

Defence Minister Oleksii Reznikov was dismissed last September over various corruption cases, despite enjoying a solid reputation in representing Ukraine in its talks with Western allies.

Although he was not personally accused of corruption, several cases hit the military under his watch, one concerning the supply of food to soldiers and another involving the procurement of clothing for troops.