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SBU exposes new scam at Ukrainian Railways

Christian Fernsby |
The SBU exposed large-scale corruption in JSC Ukrzaliznytsia.

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The offenders misappropriated money for the supply of low-quality spare parts for railway tracks. The scam cost the state economy millions of hryvnias.

According to experts, the purchased components fail to meet the requirements of state standards, leading to train accidents.

The investigation found that Ukrzaliznytsia managers organized a scam on purchase of components for the repair of transport links involving a Kyiv entity.

During 2020-2021, the private company supplied rail rubber pads in violation of due process and without proper quality control. Replacing complex chemical compounds with cheaper materials, spare parts were sold at the prices of high quality products.

For that purpose, the offenders entered falsa data into the reporting documentation and converted profits into non-observed sector of economy.

During searches of offices, law enforcement officers found: financial documents with evidence of illegal activity; allegedly forged documents on the quality control and use of purchased spare parts.

The pretrial investigation into misappropriation is underway to prosecute all involved individuals.The seized inventory is currently detained.


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