Ukrproftravel management and Trade Unions Federation exposed for selling off state assets

Ukrainian law enforcement agencies have exposed a large-scale corruption scheme orchestrated by the management of JSC "Ukrproftravel" and senior officials of the Trade Unions Federation of Ukraine. 

The case concerns the illegal alienation of state real estate belonging to trade union organisations, with the value exceeding 20 million hryvnia.

The investigation established that between 2016 and 2018, the suspects concluded four fictitious sales contracts for real estate objects located in the city of Rivne. All properties were sold at undervalued prices and, as it turned out, transferred to the ownership of relatives of one of the top managers of "Ukrproftravel".

Property for insiders

The appraised value of the sold buildings exceeded 20 million hryvnia; however, thanks to documentation manipulation and fictitious transactions, they were effectively transferred for a nominal sum. According to the investigation, this was not merely a redistribution of property but a meticulously planned scheme involving both trade union representatives and individuals with ties to state bodies.

Formally, the sales were registered in the names of third parties, but the ultimate owners became close relatives of one of the scheme's organisers, indicating the corrupt nature of the transactions.

Discounts for the "right" people

An intriguing detail in the case is information that the service staff of institutions under the control of "Ukrproftravel" provided discounts of over 20% to representatives of local authorities and law enforcement agencies. The investigation believes that in this way, management attempted to establish "useful connections", secure loyalty from regulatory bodies, and avoid inspections.

In essence, this involves the formation of a shadow network of patronage, where trade union assets became bargaining chips in corrupt dealings.

Detentions and suspicions

To date, five individuals have been notified of suspicion of committing crimes related to the illegal alienation of state property and abuse of office. Four suspects have been detained, and investigative actions are being conducted with them.

A criminal case has been opened under several articles, including fraud, abuse of power, and the laundering of assets obtained by criminal means.