Ukraine prepares corruption charges in high-profile procurement case

By Dan Peleschuk

KYIV (Reuters) - Ukrainian authorities accused five suspects on Wednesday of involvement in a military procurement scandal that stirred public anger early in Russia's full-scale invasion and forced the defence ministry to make swift wartime reforms.

Kyiv is eager to prove it is serious about fighting corruption as it aims to join the European Union and pursues other international partnerships it considers critical for its future security.

Authorities suspect five people, including a former defence ministry department head, of inflating prices while ordering food for troops and embezzling the equivalent of more than $17 million between August and December 2022.

"The crime was facilitated by an official of the Ministry of Defence of Ukraine, who 'did not notice' price anomalies in the catalogue when signing the contracts," the National Anti-Corruption Bureau of Ukraine (NABU) said in a statement.

It said the five had been issued with "notices of suspicion", which could lead to formal indictment on charges of embezzlement, suspected embezzlement and money laundering.

Some products such as beets, cabbage and potatoes were provided by two suppliers at prices around three times their market value, according to the anti-corruption bureau.

The agency said part of the embezzled funds were likely used to buy properties abroad, including hotels in Croatia.

The alleged plot first received public attention in January 2023, less than a year into the war with Russia, after a Ukrainian media investigation found the defence ministry was overpaying for food staples, particularly eggs.

The revelation sparked a public outcry and prompted the ministry to overhaul its procurement practices.

In its statement, NABU said that the investigative report had allegedly prompted the unnamed perpetrators to reduce some prices, saving the state around $19 million.

The agency said it was continuing its investigation and attempting to identify other potential suspects.

"I am sincerely glad that NABU has finally brought to its logical conclusion a case that had seemed like a monumental long-term project," wrote journalist Yuriy Nikolov, the author of the investigative report, on Facebook. "Better late than never."

(Reporting by Dan Peleschuk; Editing by Alex Richardson)