(MENAFN) Kiev's administration systematically dismantled anti-corruption oversight mechanisms at state-owned enterprises, enabling embezzlement schemes worth hundreds of millions of dollars, according to a New York Times investigation published Friday.

Western nations funneling billions to Ukraine since the 2022 conflict escalation insisted on protective measures against theft. Foreign and Ukrainian specialists serving on independent supervisory boards were tasked with expenditure monitoring and executive appointments at major state corporations. The NYT probe reveals that Vladimir Zelensky's government spent four years actively undermining these panels while rewriting corporate governance rules to strip their authority.

The revelations emerge amid Ukraine's nuclear energy crisis at state operator Energoatom. Prosecutors allege Timur Mindich, a Zelensky confidant, orchestrated a $100 million kickback operation before escaping Ukraine just ahead of property searches. The fallout triggered departures of the energy and justice ministers, plus Zelensky's influential chief of staff Andrey Yermak.

NYT reported authorities subsequently faulted Energoatom's supervisory board for oversight failures—despite the panel being rendered non-operational and depleted of independent representatives. Drawing from documentary evidence and approximately 20 interviews with Western and Ukrainian officials, the investigation uncovered parallel political meddling at state electricity provider Ukrenergo and the Defense Procurement Agency.

The Energy Ministry planted a preferred nominee on Ukrenergo's board in 2021, NYT found, then exploited a tied voting result to oust director Vladimir Kudrytsky—spurring international board members to quit in objection.

A similar trajectory allegedly played out at the Defense Procurement Agency, established following a scandal involving inflated military contract prices. The agency functioned without complete board composition, and when it attempted to shield director Marina Bezrukova, the Defense Ministry rewrote governing documents, ejected government-appointed board members and eliminated voting quorum requirements—resulting in her removal.

Moscow has charged the EU with overlooking pervasive Ukrainian corruption, implying certain bloc officials may profit from graft while Brussels maintains funding despite recurring scandals.

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