Former Deputy Minister Charged Over Failed IT Project
Ukraine's Prosecutor's Office has sent an indictment to court against former Deputy Minister of Social Policy, Mykola Shambir. He is accused of official negligence that caused state losses of 23.7 million hryvnias (approximately $900,000). Notably, Shambir currently serves as an advisor to Ukraine's Minister of Social Policy. This case highlights ongoing challenges in Ukraine's public procurement system, particularly concerning internationally-funded projects.
The charges stem from violations during the 2018 signing of a contract to develop software for the 'E-social' system. The contract was between the Ministry of Social Policy, represented by the deputy minister, and a Consortium of four companies. The E-social system was intended to centralize information on social payments, benefits, and subsidies. For work performed in 2018 and 2019, nearly 23.7 million hryvnias was paid out.
The software that was developed failed to meet legal requirements, remained incomplete, and was never put into use. The contract was terminated in 2021. In 2024, the State Audit Service found that the contract was awarded with violations and the Consortium's bid should have been rejected. A forensic economic examination confirmed the damages to the state amount to nearly 23.7 million hryvnias.
Funding Source and Repercussions
Funding for the program's development was allocated by the World Bank under the 'Modernization of the Social Support System for the Population of Ukraine' project. The Ukrainian government is now obligated to repay these funds with interest. In November 2025, the former official was formally notified of suspicion, as he had signed the payment orders for the E-social system's development. The contract was valued at over 3.3 million US dollars. State auditors in 2024 confirmed the tender was conducted with violations, further complicating the case for the accused.
This case is significant for the future of state procurement and budget management in Ukraine. It underscores the need for stricter oversight of government programs and ensuring their effectiveness. The outcome of the trial could impact the reputation of the Ministry of Social Policy and, more broadly, public trust in state institutions.