Corruption in defense sector: UAH 90 million drone procurement scheme uncovered
NABU and SAPO have exposed a large-scale scheme organized by officials of the State Service of Special Communications and Information Protection of Ukraine (SSSCIP) and representatives of private companies during the procurement of drones for the Defense Forces of Ukraine.
As established, following amendments to the State Budget in 2023, the SSSCIP was allocated UAH 30 billion for UAV procurement. The head of one of the agency’s departments devised a plan to embezzle part of these funds.
The scheme involved supplying drones at inflated prices through pre-selected companies. Controlled firms were used to imitate competition in tenders, and manipulated market research was applied to justify pricing.
As a result, between May and September 2023, the SSSCIP purchased 400 DJI Mavic 3 drones and 1,300 Autel Evo Max 4T drones at prices 70–90% higher than market rates, causing the state losses exceeding UAH 90 million.
The scheme’s participants transferred these funds to accounts of controlled companies, including abroad.
Thanks to timely actions by NABU and SAPO, arrests were imposed on over USD 4 million held in foreign accounts as well as UAH 17 million in Ukraine.
Two SSSCIP officials and two representatives of private companies have been notified of suspicion of large-scale embezzlement (Part 5 Article 191 of the Criminal Code of Ukraine).
The investigation continues to identify other potential participants in the scheme.
According to Article 62 of the Constitution of Ukraine, a person is considered not-guilty in the commission of a crime and cannot be subject to criminal punishment until he or she is found guilty by court.