(MENAFN- UkrinForm) The SBI press service said this in a statement seen by Ukrinform.

"SBI officers have served a notice of suspicion to a Lviv businessman and detained the former chairman of Ukrenergo's management board on suspicion of fraudulent misappropriation of funds belonging to the state enterprise NEC Ukrenergo. The scheme was organized by the Lviv businessman previously exposed by the Bureau for supplying substandard clothing to the Ukrainian Armed Forces worth over UAH 1 billion," the SBI said.

According to the investigation, in 2018, during tenders for the reconstruction of external fencing at substations in Ukraine's Southern and Western power systems, an official of the state enterprise conspired with representatives of a private company. At the time, he held the position of deputy director for investments at NEC Ukrenergo.

"Following the procurement process, two contracts were signed between the parties for a total of over UAH 68 million. Subsequently, the state enterprise transferred more than UAH 13.7 million in advance payments to the contractor, which the perpetrators embezzled without any intention of fulfilling their contractual obligations," the SBI said.

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Investigators also uncovered evidence of document forgery used for the state registration of a legal entity involved in the fraudulent scheme.

According to law enforcement, the suspects later carried out financial transactions with the embezzled funds to make them appear legitimate.

The Lviv businessman has been formally notified of suspicion under Part 3 of Article 27, Part 4 of Article 190, Part 2 of Article 205-1, and Part 2 of Article 209 of the Criminal Code of Ukraine for organizing fraud, falsifying documents submitted for state registration of a legal entity, and laundering criminal proceeds.

The former Ukrenergo CEO has been detained on suspicion of committing a criminal offense under Part 4 of Article 190 of the Criminal Code (fraud committed by an organized group on an especially large scale).

The charges carry a sentence of up to 12 years in prison with confiscation of property.

SBI investigators are preparing a motion to the court seeking pre-trial detention for the former Ukrenergo executive.

The pre-trial investigation is ongoing, under the procedural supervision of the Prosecutor General's Office.

As reported earlier, the SBI detained former Ukrenergo CEO Volodymyr Kudrytskyi in the Lviv region.

In October 2024, the Prosecutor General's Office announced the completion of the pre-trial investigation against Lviv businessman Ihor Hrynkevych, his son, and company directors over the supply of substandard clothing to the Ukrainian Armed Forces worth over UAH 1 billion. The case was submitted to court in January 2025.

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