NABU and SAP Uncover Large-Scale Corruption Scheme Involving $17 Million in Grain Theft

The National Anti-Corruption Bureau of Ukraine (NABU), in collaboration with the Specialized Anti-Corruption Prosecutor's Office (SAP), has revealed a large-scale corruption scheme that led to the illegal acquisition of grain worth around $17 million. According to the investigation, former leaders of the State Food and Grain Corporation of Ukraine (DPZKU) and representatives of a foreign company were implicated in this scheme.

The investigation established that in 2021, the management of DPZKU entered into four foreign economic contracts with a non-resident company for the supply of feed corn. These contracts, as reported by NABU, stipulated 100% payment for the goods prior to the transfer of ownership rights. However, contrary to these terms, the original bills of lading for the cargo were delivered to the purchasing company, allowing them to unload the vessels without any hindrance and to manage the grain that had not actually been paid for.

To conceal this fact and create a false impression of control over the assets, DPZKU retained copies of the bills of lading that bore forged signatures and seals. As a result, the state corporation lost nearly 106,000 tons of grain, which is estimated to be worth 776 million hryvnias. This information was confirmed by representatives of NABU.

Furthermore, according to investigators, the funds obtained from the sale of the stolen grain were laundered through continuous transfers between banks to mix them with legal income. Additionally, these funds were used to purchase raw materials and assets for controlled enterprises.

The investigation has identified several key figures involved in this criminal scheme. Among them are the former chairman of the board of DPZKU, the former director of the trading department of DPZKU, the director and ultimate beneficial owner of the non-resident company, as well as a trusted representative of the non-resident company.

Their actions have been classified under several articles of the Criminal Code of Ukraine, including part 5 of Article 191, which pertains to the appropriation, embezzlement of property, or acquisition of property through abuse of office, part 3 of Article 209, concerning the legalization of property obtained through criminal means, and part 3 of Article 358, which covers document forgery.

In 2021, following an attempt to flee abroad, the acting chairman of DPZKU, Andriy Vlasenko, was detained and placed under house arrest. However, it is currently unclear whether this individual is connected to the investigation.

Additionally, it was previously reported that former Minister of Agricultural Policy Mykola Solskyi was also subject to a preventive measure due to suspicions of corn-related fraud. This situation has sparked significant public outcry and has once again raised questions about corruption within state structures.

This case is a crucial step in the fight against corruption in Ukraine, as it demonstrates how high-ranking officials can abuse their powers to the detriment of the state and society.