Glushchenko: Due to fraud with the Ministry of Defense's property, the state budget lost 250 million hryvnias.

by Editor • 28.10.2014 • 0 Comments

Maxim Glushchenko

According to him, the Ministry of Defense ignored requests from special export companies that are part of the Ukroboronprom state concern, selling weapons and equipment to intermediaries at reduced prices. Due to property fraud by the Ministry of Defense, the state budget lost UAH 250 million. This was stated by Maksym Glushchenko, Deputy Head of the Ukroboronprom state concern (2012-2014), on the 112 Ukraine television channel. According to him, the Ministry of Defense ignored requests from special export companies that are part of the Ukroboronprom state concern, selling weapons and equipment to intermediaries at reduced prices. "A considerable amount of equipment was sold through such schemes, and Defense Ministry officials often profited from this, as instead of satisfying the demands of these same special exporters, who had buyers on the foreign market at much higher prices, they sold the equipment to domestic companies at significantly lower appraised prices," Glushchenko said. "As a result, the state budget lost approximately 250 million hryvnias in 2013 alone," he emphasized.

Glushchenko proposed a mechanism that could increase the country's foreign exchange earnings and the state budget's revenues tenfold. To achieve this, a number of measures must be taken. "Eliminate intermediary firms in both domestic and foreign markets; channel asset sales exclusively through specialized exporting companies that have better market knowledge and can offer the most favorable terms, and the concern would determine which company is more competent in a given market," he concluded.

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