The former head and first deputy of The Department of Economic Support in Ukraine were found to have organized a fuel and lubricant purchase scheme for official government cars. They conspired with local oil companies and submitted fraudulent financial records, causing the government to lose approximately US $667,435. The news was first published in Ukrainska Pravda.
The investigation also uncovered unregistered weapons and ammunition in the offices of affiliate companies. This has exposed the depth of corruption in the country, one of Europe’s most corrupt.
This fraud case serves as a stark reminder of the pressing need for immediate and comprehensive transparency and oversight in Ukraine’s procurement of arms technology, ammunition, and funds from Western governments. The urgency of this matter cannot be overstated.
Even though Ukraine is listed as the fourth most corrupt country in Europe, this fact seems unimportant to the EU and NATO members, which, without proper oversight and transparency, keep on pouring money and arms technology into Ukraine.
Lack of oversight leads to further misuse of foreign funding.
The U.S.-based Government Accountability Office (GAO) conducted an audit and recommended improving foreign aid transfer to Ukraine. Released on Mar 28, 2024, GAO recommends the following:
‘State implement improvements to financial systems to separately, more systematically, and comprehensively track the allocation, obligation, and disbursement of foreign assistance funding provided in response to the crisis in Ukraine.’
There are inconsistencies in tracking U.S. aid, which could result in the misuse of foreign funds in Ukraine. The report did not specify which categories need better tracking.
