Ukrainian Security Service thwarts purchase of Russian-made parts for armored vehicles at inflated prices

Officials of the state-owned company "Zhytomyr Armor Plant" (part of the Ukrainian defense concern Ukroboronprom) mishandled public funds during the purchase of spare parts of dubious quality, reported the press service of the Security Service of Ukraine (SBU).

In the spring of 2019, the company announced a tender for the purchase of components for more than 1.5 million hryvnias ($60,000 USD). The winner of the tender of the State Defense Order was a company from the Kyiv region.

The terms of competitive bidding were artificially formed to allow the company to win the tender.

"Only two participants were allowed to take part in the tender, both of them were of fictitious nature. The winning firm's only competitor is connected to it through a third commercial structure and they have a common staff. Counterintelligence special services have determined that the prices of spare parts were inflated by 2.7-5 times of the regular purchase price," the SBU added.

Certificates for products, in accordance with the terms of the tender, had to meet the US production standards. However, the documents showed signs of falsification. In the information databases the origin of the products is indicated as Russia, and the manufacturer - one of the countries of The Middle Asia. According to experts, the use of these parts could lead to a premature breakdown of the equipment that is intended for the Ukrainian Armed Forces.

According to preliminary estimates, due to the abuses by officials, the cost of purchase increased by 750,000 hryvnia ($30,173 USD). During searches at the state-owned enterprise and at the places of registration of fictitious firms in the Kyiv region, the SBU seized documentation, equipment and about 400,000 hryvnias ($16092.57 USD).

  Ukroboronprom, Ukrainian Army, SBU