The Ministry of Defense overpaid huge sums of money for the army flasks, the media were named as the beneficiaries

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The Ministry of Defense could purchase army flasks at a significantly inflated price, as a result of which the losses of the state budget may amount to at least 700,000 dollars. According to available information, the Kyiv company “Prolog Service” supplied the ministry with flasks at a price of $7.9/piece, while their real price is only $0.59/piece.

It is reported “Glavkom”. It is noted: the cost of $0.59 “became known to the investigation during operational measures.”

“According to the commercial invoice dated July 3, 2022, as part of the Ministry of Defense contract, the Kyiv firm ordered 30,150 army flasks with the inscriptions: “06.2020. Property of the ZSU. Not for sale” with a total value of 238.1 thousand dollars. So, the price of one piece was 7.9 dollars. As the investigation found out, “Prolog Service” LLC ordered a total of 100,000 army flasks. At the same time, their real price is several times lower than the one indicated in the customs documentation – 0.59 dollars against 7.9 dollars,” the report says.

At the same time, it is emphasized, in its activities “Prolog Service” used foreign companies-pads – for the purpose of “changing and preparing a fictitious package of documents.” So:

  • Chinese-made army flasks worth $238,100 were sent by the Singapore company WNC PTE.LTD;
  • 23,000 pieces of covers for plastic flasks with a total value of 203,900 dollars, which entered Transcarpathian customs in July 2022, were sent by Liege Cargo Agency Selys, a Belgian registration company.
A copy of the commercial invoice, which indicates the sender and customer of the flasks

“Thus, the obtained preliminary data allow us to assume possible manifestations of corruption on the part of representatives of “Prolog Service” and interested officials of the Ministry of Defense, who carry out public procurement. It is about a possible overestimation of the value of imported products, while foreign companies are using so-called “pads” in order to change and prepare a fictitious package of documents that takes place on the territory of the Netherlands in relation to the value”, – analysts cite procurement review materials.

Emphasizing at the same time: in general, law enforcement officers assume that the losses of the state budget from this agreement could amount to a huge amount. We are talking, at least, about 700 thousand dollars.

But “Prolog Service” probably earned about half a million hryvnias from the supply of 30,150 bottles. “The Ministry of Defense noted that with the payment of all taxes, the supplier’s earnings amounted to UAH 15.34 per bottle,” the article says.

The warranty period of operation of the flasks is 5 years

The investigation is ongoing

The authors of the article note: in July 2022, the detectives of the National Anti-Corruption Bureau (NABU) started a pre-trial investigation based on the facts of possible abuse of office by employees of the Ministry of Defense regarding the previous conspiracy with Prolog Service officials. In particular, it concerns the conclusion of a number of contracts for the purchase of flasks, cauldrons and their covers for the Armed Forces under a simplified procedure without the use of an electronic procurement system.

“In addition, the court decision contains a reference to the information of the automated system of customs clearance “ASMO”, on the basis of which the investigation concluded that the purchase price of individual flasks and accessories for them (covers and cauldrons), which were supposed to go to the provision of the army, was overestimated.” analysts say. Emphasizing: neither NABU nor the State Bureau of Investigation (SBI) did not disclose the details of the criminal proceedings.

A copy of the court order, in which the company

Who signed the contract

The authors of the material assure that they sent an information request to the Ministry of Defense. Please explain:

  • on what principles was the supplier “Prolog Service” chosen;
  • how many and which products he delivered.

“It follows from the department’s response that the contract with Prolog Service LLC from the Ministry of Defense was signed on March 23, 2022 by the acting director of the department of public procurement and supply of material resources. The name of the official is not disclosed, but the whole country already knows this person because of the recent scandal. This is Bohdan Khmelnytskyi. At the beginning of February 2023, the law enforcement officers announced suspicion against Khmelnytskyi due to the fact of wasting a large amount of budget funds to provide units of the Armed Forces with low-quality body armor,” the material says “Glavkom”.

What is known about “Prolog Service”

According to the resource Youcontrol, “Prolog Service” was created in 2018. So:

  • until July 2021, the company was owned by Roman Polyanskyi, a native of temporarily occupied Horlivka, who contributed UAH 100 to the authorized capital;
  • then his place was taken by Oleksandr Kucher, a resident of Kyiv region, who increased the contribution to the authorized capital to UAH 1 million. As of February 6, 2023, Kucher is the sole owner and director of the firm.

“It became known from open sources that Oleksandr Kucher was previously a member of the Batkivshchyna party and unsuccessfully ran for the Verkhovna Rada from this political force. Before that, he managed to visit as a confidant of the presidential candidate Viktor Yushchenko,” the authors of the article say.

As OBOZREVATEL reported, the Ministry of Defense renegotiated a number of contracts for the supply of products for military personnel in 2023. Food prices in these documents have dropped significantly. Example, instead of scandalous eggs for 17 hryvnias. now the indicated eggs are 8.4-8.76 hryvnias.

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