The NABU, the SAPO and the SBU counterintelligence service uncovered a criminal group that seized funds of the Ukroboronprom State Concern in excess of UAH 107 million in 2016-2019. Five people were suspected — four former employees of a state-owned company in the concern and the head of a private company. They face up to 12 years in prison and confiscation of property.
According to the investigation, the accused, while holding senior positions in the state enterprise, signed contracts with a non-resident company that was supposed to act as an intermediary in the sale of Ukrainian weapons abroad. In fact, all the work was carried out by employees of the state enterprise, while the foreign company received payment for fictitious services. The funds were withdrawn through shell companies and distributed among the members of the criminal group.
The accused, who are in hiding abroad, were served with suspicion notices in absentia.
The NAKO is actively working on monitoring reforms and fighting corruption in Ukraine's defence sector, in particular in Ukroboronprom. Since 2017, the organisation has been promoting the implementation of corporate governance standards in line with OECD recommendations. The reforms supported by NAKO include the establishment of a Supervisory Board and an independent international audit.
Another important achievement is the law on the corporatisation of Ukroboronprom, signed in 2021. It provides for the transformation of state-owned enterprises into transparent companies with corporate governance, which reduces the risk of corruption and increases efficiency. The NAKO continues to monitor this process and provide recommendations to prevent corruption in the reformed structures.
As of 2024, more than 30 Ukroboronprom enterprises have been corporatised, and NAKO is monitoring the transparency of appointments of the heads of these enterprises.
