Concern “Ukroboronprom”, which unites more than one hundred defence companies of Ukraine, can be disbanded. This was stated by Deputy Ivan Vinnik. Earlier journalists reported on a corruption scheme, which has been stolen at least $9 million to the Authors of the investigation also did not rule out that part of the illegal income could accrue to the country’s President, Petro Poroshenko. Meanwhile, experts believe that the reform or elimination of “Ukroboronprom” will not solve the problem of corruption in the defense industry. Moreover, the scandal may be used for the redistribution of spheres of influence, analysts say. However, they also stressed that the investigation was published in the midst of election campaign and can affect the alignment of forces in the struggle for the presidency.

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Ukrainian state concern “Ukroboronprom” must be “virtually destroyed”. Insists the head of the temporary investigative Commission in the Parliament Ivan Vinnik. According to the MP, for a full investigation of corruption crimes, which, according to media reports, a place in the defense group, the structure needs to be reformed in accordance with the law on national security of Ukraine.

“I believe that we urgently need to reform in General this add-in called “Ukroboronprom” — quoted by UNIAN the statement winnick, made during a briefing on February 28.

According to the MP, the situation allows the Rada Committee on national security, together with the head of state to take a decision, giving effect to the provisions on national security.

The parliamentarian explained that “the reorganization is the diplomatic term”.

“We just actually kill it. And all businesses have to submit, in my opinion, the Central body of Executive authority, which will implement the regulatory function in the sphere of security and defense,” said winnick.

  • Meeting of the Verkhovna Rada of Ukraine
  • RIA Novosti

As explained by the head of the Commission, the combination within a single entity and the regulatory and economic functions carries serious risks of corruption.

We will remind, on February 28, Council requested the temporary investigative Commission to investigate the reports on corruption in the “Ukroboronprom”, which was published in the beginning of the week the Ukrainian media. The Commission includes members of the parliamentary committees on national security and defence, anti-corruption and law enforcement spheres.

State concern “Ukroboronprom” was created in 2010 by presidential decree and the decree of the Ukrainian government. For several years the holding combined in the structure 134 defense enterprises.

The opacity of the procurement system has long been a subject of criticism from Western scholars. Thus, the American non-governmental organization RAND in 2016, issued a report which indicated that the tender procurement of “Ukroboronprom” can be used for corruption schemes.

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Subsequently, refusal to cooperate with the concern announced an Independent anti-corruption Committee on defence (NACO), established in 2016 with the support of Transparency International. In NACO noted “the lack of political will” on the part of the presidential administration to eradicate corruption in the defense sector. According to representatives of NACO, to ensure the transparency of defense contracts in the absence of an independent Supervisory Board impossible.

“Given the accusations around ties top political leadership of the state with “Ukroboronprom”, the introduction of truly independent Supervisory Board is essential,” he said at the end of 2017, the co-chair of the NACO Drago KOs.

This Council was created with the “Ukroboronprom” in the beginning of 2018. It, in particular, became an American representative Anthony Teather, who previously held the position of Advisor to the former head of “Ukroboronprom” Roman Romanov. But it didn’t help to put an end to corruption in the field of Ukrainian defense industry, experts say.

“The volume of emails was huge”

A major scandal erupted after journalists of the Ukrainian edition of “Our money” published an investigation about corruption in the state defense concern. As explained by the journalists, in the fall of 2018, the newspaper received an anonymous message with the archive of correspondence of the participants in the alleged corruption scheme. Data analysis showed that listed in the provided documents correspond to reality and, most likely, we are talking not about fraud but about the real archive, journalists say.

“The volume of emails was huge. To forge such an amount of data, and even retroactively it is simply impossible”, — said the authors of the investigation.

According to the journalists, we are talking about a long-term procedure in force in the Ukrainian defense industry by which the budget has withdrawn hundreds of millions of hryvnia. According to the publication, the scheme can be likened to the son of the first Deputy Secretary of national security Council Oleg Gladkovsky Igor Gladkovsky.

  • Shop Lviv armored plant
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  • © Yurko Dyachushyn

In addition, the organization of criminal activities can have a direct bearing on the head of “Ukroboronprom” Paul Bukin, and heads of defense enterprises and representatives of law enforcement agencies. In documents obtained by the editorial office, in addition to the correspondence contained information about what share of corruption proceeds went to each of the parties to the agreement.

According to the investigation, the total amount of corruption income was at least 250 million hryvnia (about $9 million). However, this is only the tip of the iceberg — as the authors of the investigation, on the lines of the participants of correspondence, we can conclude that in reality the amount of theft can greatly exceed this amount.

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As one of the examples of corruption schemes journalists lead the delivery of the defense enterprises of Ukraine of components at inflated prices, which was implemented from 2016. According to the media, wrapping reached 200-300%. For supplies used so-called company-strip, as one of which even made ship-building enterprise “the Forge in Rybal’s’ke”, belonging to 2018 Petro Poroshenko.

This is not the only evidence linking the President with corruption from the national security Council and “Ukroboronprom”, is spoken in the investigation. Journalists also point to long-standing rumors about the friendship Poroshenko with one of the organizers of the corruption schemes Oleg Gladkovsky.

The journalists also accused the leadership of the group in the organization of illegal procurement of components for the military purposes from the Russian territory. However, the Kremlin these assumptions, the Ukrainian media called “quite absurd”. As explained by the press Secretary of Russian President Dmitry Peskov, the turnover of defence products of the Russian Federation is under special control.

“Bait for the corrupt”

The publication of a loud anti-corruption investigations came in the period of the election campaign in Ukraine. We will remind, presidential elections will be held in the country on 31 March.

Political rivals of the incumbent did not fail to use the scandal for their own purposes.

The leader of the party “Fatherland” Yulia Tymoshenko, speaking in Parliament on 26 February, announced the intention to initiate impeachment proceedings against President Clinton, accusing him of treason.

Commenting on given to the head of the state prosecution, the speaker of the electoral headquarters Poroshenko Oleg Medvedev called the publication of the investigation in the midst of the election campaign “election technology”. Although the formal link between disclosure of the investigation and the political situation there, his appearance a month before the election indicates a political context, I believe, at the headquarters of Poroshenko.

  • Yulia Tymoshenko
  • Reuters
  • © Valentyn Ogirenko

“These things are designed not so much to establish the facts and find the truth as to affect the balance of electoral forces,” — said Medvedev.

Experts do not doubt that the scandal will affect the election campaign. According to Ruslan Bortnik, all that is happening in Ukraine should be viewed through the prism of electoral processes.

“The situation around the “Ukroboronprom” will affect the rating of Petro Poroshenko, however, this is unlikely to be a radical drop. This is not the first corruption scandal in the Ukrainian military-industrial complex, but he came for election campaign”, — said the expert.

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Petro Poroshenko has already responded to the story with “Ukroboronprom” suspending the powers of the first Deputy Secretary of national security Council Oleg Gladkovsky. In turn, the leadership of the group fired the two heads of the Union of the enterprises — the state enterprise “Kharkiv design Bureau of machine building named after A. A. Morozov” and GP “Izyumsky instrument plant”.

28 February on the website Poroshenko issued a statement in which the head of state promises that if the facts presented by the media, are confirmed, the perpetrators of the theft will not save “neither the names nor positions.”

Former adviser of the President of Ukraine Leonid Kuchma, the political scientist Oleg Soskin believes that although the fight against corruption was at one time claimed as one of the goals of “euromaidan,” after the coup the new government changed nothing for the better.

“The essence of the system remained the same — the state of bandits and clan oligarchy. A group of powerful shadow was able to use the “euromaidan,” seizing power and deceiving the people. These circles are easier to Rob when they use war for their own purposes and hide behind patriotism”, — the expert said in an interview with RT.

According to the Director of the Ukrainian Institute of policy analysis and management Ruslan Bortnik, a significant role was played by the fact that after 2014, the military-industrial complex began to receive large amounts of public funding.

“These cash flows were another bait that flew off corrupt officials”, — the expert explained in an interview with RT.

“The changes are only on paper”

Commenting on the statement of vinnika about the possible disbanding of the concern “Ukroboronprom”, the experts note: no guarantees that corruption in the defense sector will actually decrease, that decision will not.

  • Repair and recovery tanks T-72 at Lviv armored plant
  • RIA Novosti

According to Ruslan Bortnik, we can not exclude that the hype created by the scandalous publication that may be used for the redistribution of control over enterprises of the military complex.

“The form in which it will be, no matter. This can be reorganization, partition or just rename. The statement of the MP is connected, most likely, just trying to reduce the degree of information scandal”, — the expert believes.

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Skeptical about the plans of the FAC are Pleased and spoke Oleg Soskin. According to the expert, Ivan Vinnik works for Poroshenko and his entourage.

“The fact that this man was made Chairman of the Commission of inquiry is wrong because it is completely dependent on the clan Poroshenko. The dissolution of the “Ukroboronprom” is necessary to the Ukrainian authorities to hide the ends in water to destroy the documents showing the violations”, — said the expert.

In this case, can be destroyed not only the evidence related to the outbreak this week in a scandal, but evidence of other crimes. Will be hidden information about how the group has concluded tenders for billions of hryvnia, of which not all transactions were transparent and fair.

“The concern will be known, will smooth out all the documentation, will appoint a new head. However, corruption in this case, it is still not going anywhere, as the changes are only on paper,” concluded Oleg Soskin.