Damages to Artem plant amounting to over UAH 225 million: court sets the case for consideration

The court has scheduled a hearing on the case of embezzlement of funds of the Artem plant during procurement. The hearing is scheduled for October 16, UNN reports with reference to the SAPO.

Details

On October 7, 2024, following the results of the preparatory hearing, the HACCJ panel of judges scheduled for consideration on the merits the case of embezzlement of USD 8.3 million in the purchase by the state joint-stock holding company Artem of equipment for the manufacture of defense products, namely the serial production of 152/155 mm shell casings.

The hearing is scheduled for October 16, 2024.

As previously reported, the investigation established that in 2017, a foreign entrepreneur, having learned about the allocation of funding for the technical re-equipment and reconstruction of the production facilities of SJSC Artem, developed a plan to seize state funds intended for these purposes.

To implement his plan, the individual entered into a criminal conspiracy with a number of officials, including the Deputy Minister. In turn, these officials ensured that a contract for the purchase of equipment for SJSC Artem was concluded with a predetermined company that was registered by the organizer of the scheme in the United States as a freight transportation company, but had all the signs of a fictitious company. To conceal this fact and to eliminate competitors, the companies created the image of a certified supplier of defense products to the US Department of Defense and significantly overstated its performance indicators.

As a result, the state-owned company transferred USD 8.3 million to this company's account. The next day, the funds were transferred to the account of another company, which used them for other purposes unrelated to the contract.

These actions caused the state-owned company Artem to suffer losses of more than UAH 225 million.