Abuse in Procurement of Works to Prevent a Man-Made Disaster
On May 26, 2026, a panel of judges from the High Anti-Corruption Court (HACC) handed down sentences to two individuals found guilty of abuse of office during the procurement of works intended to avert a man-made disaster at the state enterprise Pervomaiskugol. The company’s general director had orchestrated a criminal scheme tied to pipeline installation, resulting in over 14 million hryvnias in state losses.
The court convicted the chief engineer and the chief mechanic of the Zolote mine, a subdivision of Pervomaiskugol. Their actions were classified under Part 5 of Article 27 and Part 2 of Article 364 of Ukraine’s Criminal Code. The sentences included 3.5 and 3 years of imprisonment, respectively, along with a one-year ban from holding official positions and a fine of 8,500 hryvnias each.
Case Details
In 2018, the Ukrainian government allocated funds for hydraulic work at the Zolote mine, with Pervomaiskugol designated as the fund manager. However, company officials inflated material costs in the project plan, enabling illicit kickbacks. The general contractor then signed a subcontract with another firm, whose documents included inflated prices and charges for work that was never actually performed.
This scheme caused budget losses exceeding 16 million hryvnias. Notably, over 13 million hryvnias were paid out, while the remainder was recorded as debt. The verdict may be appealed within 30 days of its announcement.
The abuses in procurement at Pervomaiskugol highlight the critical need for transparency and oversight in public spending, especially in areas directly affecting safety.
This HACC ruling may serve as a warning to other market players about the necessity of complying with legal and ethical standards in financial operations, as such crimes carry severe consequences not only for the state budget but for society as a whole.
The recent ruling by Ukraine’s Anti-Corruption Court echoes a broader trend of accountability within state enterprises. Similar to the case of an ex-director who received a 9-year sentence for embezzling funds from grain harvests, this verdict underscores the serious repercussions for those involved in corruption. For more insights into the ramifications of such financial misconduct, read about the lengthy sentence of an ex-director for grain theft and its implications for governance in Ukraine.