Massive Electricity Theft Scheme Unveiled in Ukraine, Resulting in Over 700 Million Loss
Date: 2024-01-12 Author: Dima Zakharov Categories: ECONOMY
Uncovering the Scheme
In a recent development, the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office in Ukraine have successfully unraveled a sophisticated scheme related to the misappropriation of electricity by PrAT "NEK UkrEnergo." The unlawful activities have led to substantial financial losses exceeding 700 million hryvnias.
Trader's Questionable Dealings
The investigation revealed that in March 2022, "United Energy," one of Ukraine's major traders at the time, purchased electricity from PrAT "NEK UkrEnergo" amounting to over 716 million hryvnias. Despite the outstanding debt of the purchasing company to UkrEnergo, the department head responsible for the transaction did not halt the sale. Interestingly, a commercial bank served as the payment guarantor, and the issuance of the guarantee was carried out unilaterally, breaching established procedures.
Money Laundering and International Connections
The procured electricity was subsequently sold to legitimate market participants, and the funds obtained were transferred to the accounts of a foreign company controlled by the scheme's organizer. This individual also happens to be a business partner of a key figure involved in the NABU and SAP case concerning embezzlement from PrivatBank.
Legal Actions and International Cooperation
NABU has brought charges against the scheme's organizer under Article 191 and Article 209, the director of the UkrEnergo department under Article 364.2, the chairman of the commercial bank under Article 364.1, and the director of the private company under Article 191 and Article 209 of the Ukrainian Criminal Code. Thanks to the prompt actions of NABU and SAP, assets totaling over 700 million hryvnias held in the accounts of implicated companies have been frozen.
International Freezing of Assets and Foiled Attempts
In the realm of international cooperation, funds in the accounts of the scheme's organizer's company in two European countries have been blocked. Notably, there have been documented attempts by interested parties to lift this freeze through the submission of forged letters to relevant foreign law enforcement agencies, claiming to be from detectives and prosecutors.
