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Embezzlemet in Ukraine's army: All you need to know about scandalous investigation

Author : News Agency 112.ua

President Petro Poroshenko has dismissed Oleg Gladkovsky, his longtime acquaintance First Deputy Secretary of the National Security and Defense Council, the main person named in a corruption scheme
13:30, 6 March 2019

Oleg Gladkovsky, First Deputy Secretary of National Security and Defence Council (NSCD)
Open source

Ukraine has witnessed an unexpected political turn. President Petro Poroshenko has dismissed Oleg Gladkovsky, his longtime acquaintance First Deputy Secretary of the National Security and Defense Council (NSDC) and chairman of the interdepartmental commission on military-technical cooperation and export control.

The journalists, who have been conducting their investigation for two years, stated that state defense facilities purchased the smuggled spare parts from private companies linked to Gladkovsky and his friends at highly inflated prices. Ukroboronprom state concern that supervises defense industry production facilities knew the origin of the smuggled parts but still agreed to buy them. Gladkovsky Junior’s two close associates Andriy Rohoza and former Ukroboronprom employee Vitaliy Zhukov helped him smuggle the spare parts from Russia, and, according to the journalists, they have illegally earned at least $9,2 million through three major private firms and straw firms, one of which belonged to Poroshenko – Kuznia na Rybalskomy (former Leninska Kuznia enterprise, located in Kyiv).

Ukrainian presidential candidate Yulia Tymoshenko called for the impeachment of President Poroshenko.

Related: Embezzlement in Ukraine's army: Gladkovsky's son sues investigative journalists

President’s position

"I want to honestly say one thing. As you know, last week, a journalistic investigation (by Bihus.Info, Our Money investigative program, - ed.) was published, based on a leak of information from law enforcement agencies regarding possible abuses in defense procurement. And it has caused a large public resonance. The society wants to know the truth. Everyone wants to know the truth. I also want to know the truth. Therefore, all the necessary conditions will be created for this," Poroshenko said.

As it turned out, the "necessary conditions" meant resignation of NSDC first deputy secretary Oleg Gladkovsky, who suddenly became one of the defendants of the mentioned investigation.

"I have signed a decree on Oleg Gladkovsky’s dismissal from the post of first deputy secretary of the NSDC. He also was removed from the post of chairman of the interdepartmental commission on military-technical cooperation and export control policy," the president stressed.

Poroshenko added that the corresponding decision in no case is a judicial sentence, but a contribution to the conduct of an objective investigation.

Related: First Deputy Chairman of NSDC Gladkovsky dismissed

What is Gladkovsky known for?

Oleg Gladkovsky is a 49-year-old Ukrainian manager, entrepreneur, and politician. His surname was Svynarchuk, but in 2014 he changed it to Gladkovsky.

He was born on February 5, 1970, in Chudniv, Zhytomyr region.

In 1994, he graduated from the Auto-Road Institute of Kyiv as the engineer for the organization of transportation and management of road transport. And in fact, from that time on, his name became directly associated with the name of Petro Poroshenko.

In 1994 – 1997, Gladkovsky served as director of Avtotransservice company, which was part of Poroshenko’s Ukrprominvest concern.

Then he was appointed Ukrprominvest deputy general director and has been working in this position for about 15 years.

After the liquidation of the concern, Bogdan corporation, which was also part of Ukrprominvest, became the main sphere of Gladkovsky’s interests. In particular, from 2012 to 2015 he served as its director.

Related: Anti-Corruption Bureau begins pretrial investigation of embezzlements in Ukraine’s army

He was appointed the chairman of the interdepartmental commission on military-technical cooperation and export control policies (2014) and first deputy secretary of the National Security Council (2015).

During the work of Gladkovsky in the defense industry commission, some new models of armaments and equipment were elaborated, which are now used by the Armed Forces and other law enforcement agencies of the country. In addition, the commission dealt with the strategic direction of development and the reform of the military-industrial complex of Ukraine.

As the first deputy secretary of the National Security and Defense Council, Gladkovsky developed a missile shield program and also worked on expanding Ukraine’s military-technical cooperation with NATO and the country's integration into the North Atlantic Alliance.

According to the latest data of the declaration, the total income of his family in 2017 amounted to 390,000 USD.

Corruption investigation

Bihus.Info (Our Money investigative program) has published a video, which stated that top defense officials allegedly received kickbacks on the supply of Russian smuggled parts for military equipment, three-four times overpaying for the purchases.

Related: Far-right pelted house of Ukrainian official involved in embezzlement in army with fireworks

In addition, according to investigators, this happened against the backdrop of statements about "import substitution" and the refusal of supplies from the Russian Federation.

Journalists, in particular, accused the NSDC deputy secretary, Oleg Gladkovsky, and his 22-year-old son Igor, of involvement in illegal schemes.

Igor Gladkovsky, son of the former First Deputy Secretary of the National Security and Defence Council Oleg Gladkovsky
Open source

Pavlo Bukin, Ukroboronprom state concern director general, was one of the organizers of the corruptive scheme.

The next series of this investigation reveal the details of how Bukin gives an international contract worth 14 million to Gladkovsky Junior.

Manipulation and lies: How did those involved in the corruption react to the investigation?

Immediately after the appearance of the first two investigative episodes, Oleg Gladkovsky called the accusations against him nonsense, adding that it was a provocation. At the same time, Gladkovsky's son, Igor, stated that he would sue Bihus.Info journalists in court for spreading inaccurate information.

Ukroboronprom Concern did not stand aside. Its press office claims that the investigators did not indicate the sources of the information they made public and manipulated some data.

 

Related: Embezzlement in Ukraine's army: Parliament obliges investigation commission to handle case

Preliminary outcome of the scandal

In addition to the dismissal of Oleg Gladkovsky, President Petro Poroshenko made several important announcements.

First, he publicly called on the Anti-Corruption Bureau and the anti-corruption prosecutor’s office to “investigate resonant publications and put all the dots in the defense sphere: if someone is guilty, bring him to justice, and if the person has been working conscientiously, give him an opportunity to protect his good name. Secondly, I assigned the Secretary of the National Security and Defense Council Turchynov to convene a National Security Council meeting on reforming Ukroboronprom.”

 

Related: Embezzlement in Ukraine's army: Bail for each detained official of Ukroboronprom surpasses USD 1 mln

Ukraine’s National Anti-Corruption Bureau reported that his staff had detained the current and former directors of the state-owned enterprise Spetstechnoexport (part of the Ukroboronprom concern), as well as three more ex-employees of the company. All of them are suspected of wasting 2.225 million USD.corrup

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