Corruption in the defense sector: embezzlement of UAH 90 million on drones uncovered. NABU and SAP exposed a large-scale scheme organized by officials of the State Service of Special Communications and Information Protection of Ukraine and representatives of private companies during the procurement of drones for the Defense Forces of Ukraine.
According to the investigation, after amendments to the State Budget were adopted in 2023, the State Service of Special Communications and Information Protection of Ukraine was allocated UAH 30 billion for the purchase of UAVs. The head of one of the agency’s departments devised a plan to embezzle part of these funds.
The plan involved supplying drones at inflated prices through pre-selected companies. To ensure their victory in tenders, controlled firms were involved to simulate competition, along with distorted marketing research.
As a result, from May to September 2023, the State Service of Special Communications and Information Protection of Ukraine purchased 400 DJI Mavic 3 drones and 1,300 Autel Evo Max 4T drones at prices 70–90% above the market rate. This caused losses to the state of over UAH 90 million.
The participants of the scheme transferred these funds to accounts of controlled companies, including abroad.
Thanks to timely actions by NABU and SAP, over USD 4 million on company accounts abroad and UAH 17 million in Ukraine were frozen.
Two officials of the State Service of Special Communications and Information Protection of Ukraine and two representatives of private companies have been notified of suspicion for embezzlement of funds on an especially large scale.
Details in the NABU investigation with Oleksandr Abakumov.
After the start of the full-scale war, drones became the eyes and weapons of the Ukrainian army. They save lives, help destroy the enemy, and provide an advantage where other means do not work.
In March 2023, the Verkhovna Rada allocated UAH 30 billion to the State Service of Special Communications and Information Protection of Ukraine for the purchase of unmanned aerial vehicles. This was supposed to significantly strengthen the country’s defense capabilities, but for some, these funds became a source of personal profit instead of support for the front line.
The head of one of the State Service of Special Communications and Information Protection of Ukraine’s departments, responsible for drone procurement, decided to embezzle part of the allocated funds in favor of selected companies. These companies were controlled by the brother of a businesswoman with whom the official had close business ties and several years of cooperation. They agreed to artificially inflate drone prices, with the profit margin going to the scheme participants.
The scheme involved the deputy head of the department as well as the chief financial officer of the group of companies. The actual owner of the companies informed his wife about their involvement in selling drones to the State Service of Special Communications and Information Protection of Ukraine.
“I was already being loaded with tenders early in the morning. They told me today about tenders on Monday and Tuesday with mandatory participation. Plus, the State Service asked me to become a special importer and import drones. And I really didn’t want this. It’s a huge responsibility. We are not ready for this. I really don’t know how to approach it.”
On April 19, 2023, the State Service of Special Communications and Information Protection of Ukraine sent requests for price proposals for DJI Mavic 3 drones to four business entities: the future winner, two legal entities, and a sole proprietor. All of them were controlled by the same group.
The group’s chief financial officer sent the details of one of the procurement participants to a shared accounting chat: “LLC, tax code, address, director, email.”
He also instructed the accountant to prepare statements for another procurement participant — an individual entrepreneur.
“Group CFO: Please, make the latest three-month statement and send it to me and ***(sole proprietor, procurement participant).
Accountant: There is a fee to download the statement.
Group CFO: Then later ***(sole proprietor, procurement participant) will come, and you can check it together. Don’t download it.”
The accountant of the group of companies asks the CFO about the procedure for opening treasury accounts for the companies participating in the procurement.
“Accountant: ***, are we opening the treasury account for LLC *** (procurement participant) according to Resolution 1070?
Group CFO: Yes, everything the same as for LLC *** (procurement participant).”
At the same time, the future winner, at the moment of receiving the request from the State Service of Special Communications and Information Protection of Ukraine, was not legally able to supply drones according to their scope of activity. The relevant changes to the founding documents were made only later, on April 21, 2023.
In the end, the winner offered DJI Mavic 3 drones at UAH 132,000 each, although, according to the investigation, their market price was approximately UAH 78,000. To hide the real price of the drones and extract the resulting profit margin, the scheme participants created a chain of shell companies:
“Group CFO: We pay through the chain LLC ***(tender winner) – LLC ***, LLC *** – LLC ***, amounts according to the contracts.”
Meanwhile, the company employees expressed concern over the suspicious pricing being detected by the bank’s financial monitoring service.
“Accountant 1: No panic yet? In the office?
Accountant 2: Because of whom?
Accountant 1: Finmon.
Accountant 2: *** apparently *** (controller of the group of companies) is worrying, or rather *** (actual owner of the companies).”
At the same time, the scheme participants tried to justify the legality of such pricing.
“Group CFO: We need to prepare commercial proposals from LLC *** and also from two other legal entities with worse offers. I’ll send a sample later. And what’s the cost for LLC ***, specifically for this contract?… Price per drone?
Accountant: 133,200.
Group CFO: Then we make the second commercial proposal from LLC *** (procurement participant), price 133,800… Draft it. We’ll adjust it with *** (nominal director of the procurement participant).”
They even advised the accountants to make the financial monitoring explanations sound more patriotic to avoid suspicion:
“Group CFO: The more detailed, impressive, and patriotic you write it, the better.”
After the success of the first contract, the schemers moved on to new Autel EVO Max 4T drones. Same scheme, same people, same companies.
On August 9, 2023, the CFO of the group of companies instructed to prepare the details of three controlled companies. Among them were the winner and a participant of the upcoming procurement, who received requests for commercial proposals from the State Service of Special Communications and Information Protection of Ukraine.
“Group CFO: Prepare them for these companies in Word, as you have for the others. Separate blocks for the details… Now put all three on one sheet, please.
Accountant: *** (director of the company – participant of the first procurement) received a letter (with a request from the State Service).
Group CFO: Those texters. Nothing from the others? (nominal director of the procurement participant)
Accountant: *** also received one. Should I add it for you?
Group CFO: Also *** (company – participant of the first procurement).”
There were some amusing incidents too. One of the accountants noticed that the director of the new procurement participant was still employed at the company that had participated in the Mavic drone tender.
“Accountant 1: Hi. I just had an idea. We urgently need to settle with *** (director of the new procurement participant) regarding LLC *** (company – participant of the first procurement). It looks suspicious that she’s working at LLC ***, and also the director of the company applying for the drones.
Accountant 2: Got it. Let *** know.”
On September 5, 2023, the State Service of Special Communications and Information Protection of Ukraine signed a contract for 1,300 Autel EVO Max 4T drones at UAH 479,000 each. According to the investigation, their market price at the time was half that amount.
As a result, the losses to the state from the two procurements exceeded UAH 90 million: almost UAH 22 million on the Mavics and over UAH 68 million on the Autel drones. It is important to note that officials of the State Service of Special Communications and Information Protection of Ukraine deliberately concealed the actual cost of the drones during both procurements, instead presenting inflated amounts to justify the prices offered by the winners.
After the National Anti-Corruption Bureau took interest in the drone pricing issue, the State Service and the suppliers revised the prices downward. Due to the initiated pre-trial investigation and a series of searches, panic began in the company’s internal chats.
“Employee 1: I wouldn’t bother with this cr*p, I’d just return the full amount from the additional payment and close the issue. The first price was just like… damn. Fed up. Bas**rds all.
Employee 2: You know my opinion.
Employee 1: F***ing idiots.
Employee 2: I don’t get these jokes.
Employee 1: That a**hole will mess it up.
Employee 2: Why not return what should be returned under the contract.”
In October 2025, NABU and SAP exposed the scheme. Two officials of the State Service of Special Communications and Information Protection of Ukraine and two representatives of private companies were notified of suspicion. More than USD 4 million in participants’ accounts abroad and UAH 17 million in Ukraine were frozen.
The ordered drones were delivered to the troops and are performing combat missions. The investigation is ongoing.
