Top management at a state grain corporation and a foreign company colluded to seize shipments without payment, investigators say
© Getty Images/elena_larina
An
alleged corruption scheme involving the embezzlement of $17.7 million
worth of grain has been uncovered in Ukraine, implicating senior
officials of a state grain corporation and an unnamed foreign company.
The
US-backed National Anti-Corruption Bureau of Ukraine (NABU) and the
Specialized Anti-Corruption Prosecutor’s Office (SAPO), leading the
probe, said on Thursday that the scheme dates back to 2021, when the
State Food and Grain Corporation of Ukraine (SFGCU) signed four
contracts to supply corn to a foreign buyer.
The contracts
required full prepayment. Instead, officials and the company allegedly
colluded to hand over control of shipments without payment,
investigators said.
NABU said no payment was made. Despite this,
the corporation allegedly transferred key shipping documents to the
buyer, giving it control over the cargo.
“Contrary to the contract terms, which required 100% payment for the goods before the transfer of ownership, the original bills of lading ended up in the hands of the buyer,” the agency said. “This allowed the vessels to be unloaded and the unpaid grain to be freely used or disposed of.”
To
cover up the loss, officials kept internal copies of the documents with
forged signatures and seals, creating the appearance that the shipments
remained under state control, investigators said.
In total, around 106,000 tons of grain were allegedly taken, causing losses estimated at 776 million hryvnia ($17.7 million).
Proceeds
from the sale of the grain were allegedly laundered through bank
transfers to blend them with legitimate funds, and by buying raw
materials and assets for affiliated companies, investigators said.
Several individuals have been notified of suspicion, including a
former head of the SFGCU, its ex-trading director, the head and
beneficial owner of the foreign company, his associate, and another
alleged accomplice. They face charges of embezzlement, money laundering,
and forgery.
Kiev has been hit by a series of corruption scandals
over the past year. In November, the anti-corruption agencies uncovered
a $100 million kickback scheme involving state nuclear operator
Energoatom, implicating a close associate of Ukrainian leader Vladimir
Zelensky, Timur Mindich, who fled the country.
The fallout
included the resignation of Energy Minister German Galushchenko, who was
later arrested while attempting to flee to Poland, and Zelensky’s chief
of staff, Andrey Yermak.
NABU has also exposed an alleged
vote-rigging scheme involving more than 40 sitting MPs who were
reportedly bribed in exchange for votes.