Ukraine rocked by new multi-million-dollar corruption scandal

Top management at a state grain corporation and a foreign company colluded to seize shipments without payment, investigators say 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. Read more US advised Ukrainian anti-corruption agents on busting Zelensky ‘allies’ “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. Read more Zelensky’s ex-energy minister charged in $100 mn graft case 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.