The officer of the State Security Service of Ukraine (SBU) working on the protection of critical infrastructure, together with the National Anti-Corruption Bureau of Ukraine (NABU) and the National Commission for Energy, Housing and Utility Services Regulations (NCER) have revealed a scam that resulted in a loss of over $49 million to Naftogaz-Ukraine.
“Law enforcement officers discovered that between 2013 and 2015, representatives of two corporations submitted false data about the consumption volume of so-called “municipal” gas to Naftogaz-Ukraine and the commission. The gas can only be sold to households, however, it was used for commercial purposes instead,” the SBU’s press service informed on Wednesday, Interfax-Ukraine reports.
Officers of the main department of counterintelligence protection of state interests in the area of economic security found that illegal actions by entrepreneurs led to the coverage of Naftogaz’s losses from the state budget.
“SBU initiated off-schedule inspections by the NCER how the licensed operations of businesses are observed. The inspections confirmed facts of “municipal” gas usage for other purposes,” the press service explained.
The press service of the Anti-Corruption Bureau said that due to the aforementioned measures, profits from power generation by commercial both heat and power plants (CHPPs) that obtained “municipal” gas reached over 60% (compared to 3-5% set in the tariffs approved by the NCER).
“Hence, according to detectives of the Anti-Corruption body, CHPPs acquired supernormal profits, comparable with the amount of loss Naftogaz-Ukraine sustained as a result of this scam,” the NABU said.
Criminal proceedings in regards to offenses described in Part 5 of Article 191 and Part 2 of Article 366 of the Criminal Code of Ukraine have been initiated.
“As part of the pre-trial investigation, the Security Service investigators found the main defendants in the case, who were detained by the National Anti-Corruption Bureau of Ukraine in accordance with Article 208 of the Criminal Code of Practice of Ukraine,” the press service of the SBU told.
NABU’s press service said that on 16 January 2018, the bureau’s detectives together with prosecutors of the Specialized Anti-Corruption Prosecutor’s Office (SAPO) detained four representatives of Energiya-Novy Razdel LLC, Energiya-Novoyavorovsk LLC and Energiya LLC in Lviv, who are suspected of seizing over 300 million cubic meters of natural gas belonging to Naftogaz-Ukraine worth more than $49 million.