Embezzlement of UAH 24 million in port equipment scheme: organised group exposed (PHOTOS)

NABU and SAPO have exposed an organised group that embezzled more than UAH 24 million from the state enterprise Izmail Sea Commercial Port. The scheme operated in 2022–2023 and involved inflating the cost of equipment and goods.

According to the investigation, the scheme involved the port director and representatives of private supplier companies controlled by the organiser. The latter effectively acted as the “general director,” while his subordinates handled the technical and financial aspects.

Members of the group had access to confidential information about upcoming procurements and predetermined the “winners” of tenders in advance.

These companies then independently negotiated with manufacturers; prepared technical specifications and tender documentation on behalf of the port; inserted discriminatory requirements to eliminate real competitors; submitted inflated price offers to increase the expected procurement value; and carried out other anti-competitive coordinated actions.

As a result, leading manufacturers and dealers did not participate in the tenders, and goods were supplied by controlled companies at inflated prices.

The funds received from the port were transferred to accounts of the group’s companies and individual entrepreneurs, then withdrawn in cash and distributed among participants.

The preliminary estimate of losses exceeds UAH 24 million.

All members of the organised group have been notified of suspicion under Part 5 Article 191 of the Criminal Code of Ukraine.

NABU detectives initiated the criminal proceedings in May 2024 based on their own findings — including analysis of public procurements in the Prozorro system and complaints from tender participants. Some of the companies involved in the scheme have already been added to the AMCU “blacklist.”

The amount of damage was established thanks to conclusions from the State Audit Service of Ukraine and experts of the Institute of Special Equipment and Forensic Examinations of the SBU.