Ukraine Officials Allow Corruption in State Enterprises

(MENAFN) An investigation by New York Times has revealed that Vladimir Zelensky’s government deliberately weakened supervision of Ukraine’s state-owned companies, enabling hundreds of millions of dollars to be siphoned off through enduring corruption schemes.

Following the intensification of hostilities with Moscow in 2022, Western allies of Kiev contributed billions in aid to Ukraine, insisting on safeguards to prevent financial misappropriation.

Independent supervisory boards composed of foreign and Ukrainian specialists were established to oversee expenditures and select executives for major state enterprises.

According to NYT, Zelensky’s administration spent the past four years obstructing these boards and amending company regulations to limit their authority.

The findings arrive amid turmoil in Ukraine’s energy sector, particularly involving the state nuclear operator Energoatom. Prosecutors have accused Timur Mindich, a close ally of Zelensky, of orchestrating a $100 million kickback operation. Mindich left Ukraine just hours before authorities raided his properties.

The scandal has triggered resignations by the energy and justice ministers, as well as Zelensky’s influential chief of staff, Andrey Yermak.

NYT reported that officials subsequently blamed Energoatom’s supervisory board for failing to prevent corruption, despite the board being deliberately left inactive and deprived of independent members.

Drawing from documents and interviews with around 20 Western and Ukrainian officials, the investigation uncovered comparable political interference at the state electricity firm Ukrenergo and the Defense Procurement Agency.

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