Anti-Corruption Agencies Uncover Scheme Involving 137.5 Million UAH Misappropriated from Kyiv Metro

Criminal Network Exposed

According to САП: The Specialized Anti-Corruption Prosecutor's Office (SAP) together with the National Anti-Corruption Bureau of Ukraine (NABU) have dismantled a criminal group suspected of embezzling 137.5 million UAH from the Kyiv Metro municipal enterprise. The fraud was enabled by inflated pricing on transportation and forwarding services during 2023. Following the investigation, seven individuals have been formally charged under Part 5 of Article 191 of the Criminal Code of Ukraine.

Investigation Insights

The accused include a former official of Kyiv Metro, three current employees of the enterprise, two co-organizers of the scheme, and the director of a controlled company. In 2023, Kyiv Metro held tenders to procure transportation and forwarding services to deliver 60 metro cars, which had been gifted free of charge by the Warsaw Metro at the end of 2022.

The contract was awarded to a pre-selected company that submitted artificially high price bids. The total contract value amounted to 190 million UAH.

Funds for the contract were transferred to the account of an affiliated foreign company. While a portion of the payment was made to the actual carrier, the remaining 137.5 million UAH was unlawfully appropriated. The exposure of this scheme was facilitated by active cooperation with experts from the State Audit Service.

According to Part 1 of Article 62 of the Constitution of Ukraine, a person is presumed innocent until proven guilty by a court verdict.

This case highlights the critical need for stringent oversight of public funds, especially amid economic challenges. The uncovering of this criminal operation reflects heightened efforts by Ukraine's anti-corruption bodies, signaling progress toward greater transparency in public procurement processes.

Investigations like this can also enhance public trust in governmental institutions and improve financial accountability in the management of communal services.

In light of recent developments in anti-corruption efforts, it's worth noting another significant case involving embezzlement allegations against Ukrzaliznytsia, where authorities are pursuing a court case for 235 million UAH. This ongoing investigation underscores the pressing need for accountability in public enterprises as Ukraine continues to tackle corruption in various sectors.