Ukraine is planning to liquidate scandal-hit defence firm Ukroboronprom and replace it with a state agency with broader powers, deputy chairman of National Security and Defense Council of Ukraine, Sergei Krivonos has said.
A statement submitted to the country's unicameral parliament on April 24 revealed that the concern and its enterprises have become inefficient. This resulted in poor investment prospects, disruption of weapons supplies for the country’s armed forces and power abuse by some of its officials, reports TASS.
"A separate state agency with broad powers will be set up, to which members of the concern will be subordinate. In line with the new bill, a great number of existing firms acting as intermediaries will be liquidated," the official said in a statement published on the council’s official website.
"This move will eliminate the obscolete management system and at the same time preserve the enterprises that worked efficiently," he added.
Two corruption scandals broke out following the release of successive videos by Bihus.info after the conclusion of an investigative project. The first broke out just three weeks ahead of the first round of the presidential election in Ukraine.
Thefirst one was dedicated to how Oleg Gladkovskyi, former President Petro Poroshenko’s business partner, allegedly laundered $9.2 million in defense procurements.
Investigation revealed that shadow schemes were used in the defense sphere, making it possible for the country's defense enterprises to charge an arm and a leg for supplying parts from Ukrainian military depots and some parts from Russia through rogue firms with participation of senior officials.
The latest one accuses Ukroboronprom of procurements at prices five times higher than the market average.
State Fiscal Service of Ukraine, military prosecutors and the National Anti-Corruption Bureau (NABU) were also accused of being involved in Ukroboronprom corruption schemes.