Fraud in the News

Ukraine alleges $40 million defense procurement fraud and more

Ukraine alleges $40 million defense procurement fraud

Ukrainian authorities have accused high-ranking officials in the Ministry of Defense and arms supplier Lviv Arsenal of stealing nearly 1.5 billion hryvnias ($40 million) in the purchase of 100,000 mortar shells.

Ukraine’s security service SBU reported that the military made a deal for the shells with Lviv Arsenal just six months after Russia invaded the country in 2022. Payment was made in advance, but the weapons never arrived, and funds were then transferred to foreign accounts. So far, five people have been served “notices of suspicion,” the first step in Ukraine’s legal proceedings.

According to Reuters, the accusations come at a particularly sensitive time for the nation beleaguered by war — rooting out endemic corruption is a major issue in its bid to join the European Union. (See “Ukraine says it uncovers mass fraud in weapons procurement,” Reuters, Jan. 28, 2024.) 

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