Ukraine’s Zelensky orders defence audit after corruption scandal in energy sector

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Ukrainian President Volodymyr Zelensky said an overhaul of the supervisory boards of defence companies was under way.

Ukrainian President Volodymyr Zelensky said an overhaul of the supervisory boards of defence companies was under way.

PHOTO: AFP

Follow topic:
  • President Zelensky ordered an audit of Ukraine's defence industry due to corruption uncovered in the energy sector, including grid protection contract fraud.
  • Timur Mindich and Oleksandr Tsukerman, suspects in a US$100 million kickback scheme, are wanted; Mindich has ties to Zelensky's former company.
  • Supervisory boards of defence firms will be overhauled, alongside ongoing energy sector scrutiny, as Ukraine seeks funds and battles increasing corruption.

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KYIV - Ukrainian President Volodymyr Zelensky on Nov 22 ordered an audit of the war-torn country’s large defence industry, after a sweeping corruption probe uncovered graft in the battered energy sector.

Though the investigation mostly concerned energy, it has also found fraud in contracts that provided for the protection of the grid, particularly vulnerable to relentless Russian bombardments.

“A decision has also been prepared regarding a full review of state defence companies and relevant contracts,” Mr Zelensky said on social media.

“All findings on revealed violations will be forwarded to law enforcement and anti-corruption agencies,” he added.

Meanwhile,

two key suspects

implicated in the US$100 million (S$130 million) kickback scheme, Timur Mindich and Oleksandr Tsukerman, were added to Ukraine’s wanted list, according to the interior ministry.

Both are believed to be at large.

Mindich co-owns the media production company Kvartal 95, founded by Mr Zelensky, who was a star comedian before running for office.

Ukrainian media previously reported that the two were friends.

An overhaul of the supervisory boards of defence companies was also under way, Mr Zelensky said.

This was in addition to an already ongoing scrutiny of the energy sector, announced last week as

the corruption scandal

started to unravel.

The Ukrainian president also said Kyiv was preparing for meetings with international financial institutions as it scrambles to secure funds amidst mounting Russian advances.

Anti-graft investigators said around US$100 million had been embezzled from the energy sector, causing outrage in a country where Russian attacks have resulted in

devastating power outages.

Mr Zelensky

sacked two ministers

over the corruption scheme and

sanctioned Mindich and Tsukerman,

who were named as its masterminds.

The scandal prompted some of Ukraine’s European allies to urge Mr Zelensky’s government to do more to battle corruption. AFP

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