Corruption scheme involving army bunk beds

Corruption scheme involving army bunk beds
Corruption scheme involving army bunk beds

A major corruption scheme linked to the procurement of army bunk beds for the Armed Forces of Ukraine has been exposed in Poltava Oblast. This came to light during an investigation that revealed the misuse of budget funds amounting to over 5 million hryvnia.

Violations in contract conclusion

According to the investigation, the head of the Housing and Maintenance Department (KEV) of the city of Poltava is suspected of negligent performance of his duties, which led to significant financial losses. In 2023, the KEV concluded three contracts with the private company "KMG GRUP" for the supply of 3,000 army beds. The procurements were carried out without open tenders, which is a violation of legal procedures, based on a Cabinet of Ministers resolution dated 12 October 2022, No. 1178.

Inflated prices and losses for the state

The total value of the contracts was 16.8 million hryvnia (5.6 million hryvnia per contract). However, according to the results of a judicial economic expert examination, the cost of the beds was significantly lower than the market price, resulting in an overpayment of 1.7 million hryvnia for each contract. In total, the damage to the state budget amounted to 5.1 million hryvnia.

Negligent management and consequences for the suspect

The head of the KEV, who has held his position since 9 December 2021, failed to conduct proper monitoring of market prices or seek alternative suppliers. Instead, he concluded direct contracts with "KMG GRUP" at inflated prices. Experts deemed his actions to be the result of negligence. Consequently, on 12 February 2025, he was formally charged under Article 425, Part 4, of the Criminal Code of Ukraine.

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