Misappropriation of almost UAH 95 million by UZ: former advisor to Presidential Office Shylo exposed

Misappropriation of almost UAH 95 million by UZ: former advisor to Presidential Office Shylo exposed

The National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office exposed an organized group that seized almost 95 million UAH from Ukrzaliznytsia JSC for the purchase of transformers during martial law. It is headed by a former adviser to the Office of the President.

This was reported by the press services of the authorities.

According to Word and Deed information from its own sources, we are talking about the former freelance adviser to the OP Artem Shylo, who in August 2022 returned to the Security Service of Ukraine to the position of deputy director of the Department for the Protection of National Statehood. He is now detained.

"SAPO and NABU exposed an organized group led by a former adviser to the Office of the President of Ukraine. Under the procedural guidance of SAPO prosecutors, NABU detectives exposed an organized group whose activities led to the seizure of UAH 94.8 million during the purchase of transformers during martial law. The investigation established that the organized the group was created in 2021 to control the funds of Ukrzaliznytsia JSC,” SAP informs.

According to the investigation, during June - December 2022, the head of the organized group, through controlled officials of Ukrzaliznytsia, ensured the election of a predetermined company as a supplier of power transformers. Transformers were supplied at an inflated cost. The letter “On threats to state security” was used as a basis for rejecting proposals from other procurement participants with more favorable price conditions.

“It is important that the winning company is controlled by a citizen of the Republic of Belarus who has connections with the Russian Federation. This winner, through a controlled installation company registered in Bulgaria, purchased transformers from a manufacturer in Uzbekistan and resold it to UZ at a price artificially inflated by almost half. As a result of the implementation of the scheme during 2022-2024, Ukrzaliznytsia suffered losses in the amount of UAH 94.7 million, which the participants in the crime took possession of and disposed of at their own discretion,” NABU noted.

NABU and SAPO through the court seized UAH 53 million in the bank accounts of the supplier company. The leader, co-organizer and two members of the organized group have now been detained.