Ukrainian authorities ordered the arrest of five individuals who work for an arms firm for allegedly conspiring with defense ministry officials to embezzle nearly $40 million.
The money was earmarked to purchase roughly 100,000 mortal shells that Kyiv will use in its war against Russia. Ukraine's Security Service (SBU) on Saturday said that the suspects have been charged, with one person detained while trying to cross the Ukrainian border.
Ukraine's $40 Million Corruption Scheme
Ukrainian officials arrested five individuals in relation to a $40 million corruption scheme that involved money that was meant to purchase ammunitions for its war against Russia.
If the defendants are found guilty of the charges against them, they could face up to 12 years of imprisonment. The investigation into the alleged corruption scheme comes as Ukraine tried to clamp down on financial misconduct in an effort to speed up its membership in the European Union as well as the NATO military alliance.
Officials from both blocs have demanded for Ukraine to conduct widespread anti-graft reforms before it can join their ranks. The situation comes as Ukrainian President Volodymyr Zelensky was elected on an anti-corruption platform in 2018, a few years before Moscow's full-scale invasion of the region in February 2022, as per the New York Post.
Both Volodymyr and his aides have portrayed the recent firings of top officials as proof of their efforts to crack down on graft across the nation's government. The most notable of these was that of Ivan Bakanov, the former head of the State Security Service, who was sacked in July 2022.
Security officials have also argued that the current investigation dates back to August 2022, when officials signed a contract for artillery shells that are worth $39.6 million with arms firm Lviv Arsenal.
After taking the payment, company employees were supposed to transfer the money to a business that was registered abroad, which would subsequently deliver the ammunition to Ukraine.
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Arrest of 5 Individuals
However, the SBU said that it never received the ammunition despite paying nearly all of the funds required by Lviv Arsenal. It argued that some of the money had been transferred to foreign accounts, including in the Balkans, according to CNN.
The investigation into the conspiracy also found that former and current high-ranking defense ministry officials, the head and chief commercial of Lviv Arsenal, as well as a representative of a foreign commercial group, were involved in the corruption scheme.
The discovery of the conspiracy is expected to have consequences for Ukraine as it continues to fight against Russia's continued aggression. The CEO of Lviv Arsenal, Yurii Zbitnev, said that the person who was responsible for the ammunition contract had already been fired.
He noted that the company is now working with the defense ministry in order to return the money to the state. This is so that the funds can be "used for more appropriate purposes" instead of being stolen in a corruption scheme.
Some detractors have argued that Ukraine's history of corruption is all the more reason to stop providing money to the European country. This is amid its nearly two-year war with Moscow. However, Ukrainian officials said that they are being extremely vigilant in fighting against graft, said the Washington Post.
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