SAPO and NABU uncovered a scheme in which the state lost 105,000 tons of grain worth nearly $29 million

SAPO and NABU have uncovered a corruption scheme at the State Food and Grain Corporation of Ukraine: the state lost 105,000 tons of grain worth nearly $29 million.

This was reported by the Specialized Anti-Corruption Prosecutor’s Office.

Under the procedural supervision of SAP prosecutors, NABU detectives exposed an organized criminal group involved in the misappropriation of grain belonging to JSC State Food and Grain Corporation of Ukraine (SFGCU).

The implementation of this corruption scheme led to the state losing a record 105,000 tons of grain worth more than $28.8 million.

Suspicion notices have been issued to the former chairman of the board of SFGCU, the former head of SFGCU’s trading department, the owner of an international company, a trusted representative of that company, and another accomplice.

In 2021, the former head of SFGCU, together with the director and ultimate beneficial owner of an international company, organized the criminal scheme.

Managers from the state corporation’s department and two trusted associates were brought in to carry it out, each acting according to clearly assigned roles. The management of SFGCU signed four contracts with a non-resident company for the supply of feed corn, under which SFGCU delivered more than 100,000 metric tons of corn.

After the shipments were made, members of the group forged shipping and title documents to create the illusion of control over the goods. At the same time, the fake documents were kept by the department director in his safe, while the originals remained with other members of the criminal group.

These actions allowed them to effectively dispose of the grain and sell it to end buyers abroad, including in Iran, Turkey, and Egypt, without making any payment to the state company.

As a result of the scheme, the state corporation lost 105,000 tons of grain worth more than $28.8 million.

The money received from selling the stolen grain was laundered through numerous bank transfers in order to mix it with lawful income.

At present, three members of the organized group have been detained. The issue of choosing preventive measures for them is now being decided.