UAH 36M embezzled in shadow leasing scheme: former State Reserve head exposed

NABU and SAPO have exposed a large-scale corruption scheme involving the embezzlement of funds from a state-owned enterprise managed by the State Reserve Agency of Ukraine.

The suspects include:

• the former head of the State Reserve Agency;
• a former deputy director of the state enterprise;
• the organizer of the scheme;
• an accomplice.

According to the investigation, in the autumn of 2022, the suspects devised a plan to embezzle state enterprise funds generated from warehousing services. Starting in January 2023, the officials transferred large state-owned warehouse areas to controlled private companies under the guise of storage services.

These companies then subleased the state properties to legitimate businesses. The illicit profits were cashed out and pocketed by the scheme's participants.

To conceal the crime and create an illusion of legitimate activity, the state enterprise officials signed fictitious contracts with the controlled firms. They deliberately falsified acceptance-transfer certificates, indicating significantly smaller leased areas on paper than were actually used.

The scheme caused an estimated UAH 36 million in losses to the state.

The organizer of the scheme was detained while attempting to cross the state border and remanded in custody by the court.

Searches were conducted at the suspects' residences. The investigation is ongoing to identify all individuals involved in the scheme.

The suspects' actions fall under Part 5 Article 191 of the Criminal Code of Ukraine.