SAPO and NABU notify former dpty minister Lozynsky of new suspicion

Anti-corruption authorities have notified former Deputy Minister of Communities, Territories, and Infrastructure Development of Ukraine Vasyl Lozynsky and an official of a state-owned enterprise of a new suspicion, the press service of the Special Anti-Corruption Prosecutor’s Office (SAPO) has said.

Under the procedural guidance of a SAPO prosecutor, NABU detectives notified the former deputy minister of Ukraine and the state enterprise official of the new suspicion, SAPO said on Facebook on Monday.

The actions of the former deputy minister are qualified under Part 4 of Article 27, Part 2 of Article 364 of the Criminal Code of Ukraine (aiding and abetting abuse of power or official position causing grave consequences). The actions of the director of the state enterprise are qualified under Part 2 of Article 364 of the Criminal Code of Ukraine (abuse of power or official position causing grave consequences).

The SAPO press service provided details of the case. In the summer of 2022, the Cabinet of Ministers allocated funds to the Ministry of Development to provide the population with alternative sources of light, heat, and water supply during the winter period. Within the framework of the pre-trial investigation, it was established that the deputy minister induced the state enterprise official to conclude an agreement with a predetermined supplier. In exchange, he guaranteed the official’s transfer from the position of deputy director to the position of director of this state enterprise. As SAPO emphasized, the equipment was to be supplied at a price that exceeded the market rate by 30%. As a result, millions in damages were caused to the state.

SAPO reminded that another case involving the former deputy minister, his confidant, and other accomplices is currently under consideration by the High Anti-Corruption Court (HACC). They were exposed for requesting and receiving $400,000 in an unlawful benefit.

The report does not explicitly name the suspect, but judging by the details of the case, it refers to former Deputy Minister of Development Vasyl Lozynsky.

In 2022, to provide the population with heat during the winter period, the Cabinet of Ministers transferred UAH 1.68 billion to the Ministry of Communities, Territories, and Infrastructure Development. According to the investigation, Lozynsky agreed to conduct procurement through direct contracts with predetermined contractors for a bribe—UAH 1.41 billion was allocated for these purchases. With this money, the Ministry of Development intended to purchase mobile water purification units, tankers, diesel and gas generators, drainage and sewage pumps, mobile boiler houses, and fuel and lubricants. The procurement was carried out by the state institute UkrNDIvodokanalproekt.

According to the version of NABU and SAPO, Lozynsky entered into a conspiracy with entrepreneurs from whom he was supposed to receive 7-10% of the amount of each contract. As a result, a $400,000 bribe was transferred to Lozynsky through an accomplice. However, the former deputy minister was unable to receive the money because NABU searched the intermediary and subsequently detained Lozynsky himself.