The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) have uncovered a large-scale corruption scheme involving the misappropriation of grain from the State Food and Grain Corporation of Ukraine (SFGCU), ProAgro Group reports.
According to NABU, the organized criminal group included former top officials of the state corporation and representatives of a foreign company. The investigation established that in 2021, the management of SFGCU concluded four foreign trade contracts with a non-resident company for the supply of feed corn.
Contrary to the contract terms, which предусматривали 100% prepayment before the transfer of ownership, the original bills of lading (a transport document and proof of ownership required to claim cargo at the port) were handed over to the buyer. This allowed the company to unload the vessels and dispose of the grain without paying for it.
“To conceal this fact and create a false impression of control over the assets, SFGCU retained copies of the bills of lading with forged signatures and seals. As a result, the state corporation lost nearly 106 thousand tonnes of grain worth UAH 776 million,” NABU stated.
The proceeds from the sale of the stolen grain were laundered through continuous transfers between bank accounts to mix them with legitimate funds, as well as through the purchase of raw materials and assets for controlled enterprises.
Suspicion notices have been served to:
- the former Chairman of the Board of SFGCU;
- the former Director of the Trading Department of SFGCU;
- the director and ultimate beneficial owner of the non-resident company;
- a trusted representative of the foreign company;
- another accomplice.
The actions are classified under Part 5 of Article 191, Part 3 of Article 209, and Part 3 of Article 358 of the Criminal Code of Ukraine.
As previously reported, the Security Service of Ukraine together with NABU uncovered additional criminal episodes involving a sitting Member of Parliament related to land assets of the National Academy of Agrarian Sciences worth over UAH 30 million.
