The Security Service of Ukraine (SBU) has thwarted the activities of a criminal group that misappropriated over 10 million hryvnias of state funds allocated for the repair of critical energy infrastructure. The fraud scheme was uncovered during an investigation into procurement for the Trypilska and Zmiivska thermal power plants (TPPs), which supply energy to the Kyiv and Kharkiv regions.
Old pipes instead of new: how the scheme worked
Special service officers established that three individuals were involved in the embezzlement: the head of one of the departments of PJSC 'Tsentrenergo' and two owners of supplier companies. The suspects concluded a contract for the supply of materials for the repair of energy facilities, but the tender conditions were grossly violated.
Instead of new products, which were supposed to be purchased according to state standards, the suspects offered the power plants old pipes. According to the investigation, this product had been stored outdoors for a long time, which significantly reduced its operational characteristics.
To conceal the actual condition and year of manufacture of the materials, the criminals applied fake markings to the pipes, passing them off as new products. The difference between the actual cost of the used materials and the price indicated in the contract was distributed among the participants of the scheme.
Threat to the energy system and financial losses
The investigation emphasizes that the use of substandard materials could have had catastrophic consequences. The SBU notes that the supply of such pipes jeopardized the stable operation of key thermal power plants, especially on the eve of the heating season.
Conducted expert examinations confirmed that the supplied products did not meet state quality standards. As a result, 'Tsentrenergo' suffered direct losses amounting to 10.4 million hryvnias.
Searches and charges
During operational activities, SBU officers conducted searches at the suspects' premises. During the investigative actions, mobile phones, computer equipment, and documentation confirming the existence of the criminal scheme were seized.
All three suspects have been notified of suspicion under several articles of the Criminal Code of Ukraine, in particular for misappropriation of property, forgery of documents, and abuse of office. The courts will decide on the selection of preventive measures. They face up to 12 years of imprisonment with confiscation of property. The pre-trial investigation is ongoing.
