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A Ukrainian deputy minister has been arrested on suspicion of embezzling funds intended for rebuilding the country’s damaged infrastructure.
An investigation by the National Anti-Corruption Bureau of Ukraine found that public funds put aside for alternative energy sources during the winter months had been misappropriated.
Ukraine’s Infrastructure Ministry confirmed the arrest of Vasyl Lozynskyy on its Facebook page, writing: “Today it became known that Vasyl Lozynskyy, Acting Minister of Communities and Territories Development of Ukraine, was detained for embezzlement of budget funds.”
It said that Lozynskyy, who has not commented on the allegations, will be dismissed from his position.
According to the National Anti-Corruption Bureau, Lozynskyy is accused of receiving $400,000 in “unlawful benefits.”
NABU said on its website that it had “exposed and stopped the embezzlement of budget funds,” and “detectives detained [Lozyynskyy] for receiving $400,000 in unlawful benefits. The deputy minister received the money for facilitating the signing of contracts for the purchase of overpriced equipment and machinery.”
NABU said that last summer some $49 million was allocated to “provide the population with alternative sources of power, heat, and water supply in the winter due to the situation caused by the destruction of critical infrastructure. The investigation found that a number of officials of central and regional executive authorities decided to misappropriate part of the public funds.”
“To achieve this, they colluded with a group of intermediaries and ensured that procurement contracts were concluded with predetermined business entities overpriced by almost 280 million UAH (approx $7.6 million).
NABU added that: “A number of searches were conducted, during which UAH 920,000 and $38,700 were found and seized in the office of the businessmen. Also, at night, one of the members of the organized criminal group was detained as he was trying to cross the state border and leave Ukraine.”
