UAH 231M embezzlement on medical equipment for cancer patients: criminal organization exposed (PHOTOS)

NABU and SAPO have uncovered a large-scale embezzlement of budget funds allocated for the procurement of medical equipment for cancer patients.

According to the investigation, the de facto head of the largest group of medical equipment suppliers established a criminal organization that included representatives of affiliated companies and officials from the National Cancer Institute (NCI).

The scheme involved several stages to ensure that the affiliated companies would win public tenders for medical equipment at the NCI beyond competition. This included designating the NCI as the budget holder, gaining full control over the procurement process, conducting a superficial (fake) market analysis, and creating conditions to disqualify non-affiliated competitors from tenders.

To maximize profits from the medical equipment procurement, the criminal organization artificially inflated the prices, sometimes by up to 50% above the initial cost. This was achieved by inserting foreign companies affiliated with the scheme’s organizer into the supply chain, altering equipment configurations, and other means. These facts are confirmed by a range of evidence gathered with the assistance of law enforcement agencies from 12 countries involved in the investigation under international cooperation.

During 2021–2022, the scheme participants embezzled more than UAH 231 million.

The suspects are:

• the de facto head of the largest group of medical equipment suppliers, the scheme organizer;
• two trusted associates, representatives of affiliated companies;
• two NCI officials (at the time the crime was committed);
• the NCI acting director (at the time the crime was committed), also a regional council deputy.