Deputies of Odesa Regional Council take Danube Shipping Company's vessels abroad for 80 million

A large-scale ship resale scam was uncovered in Odesa region. The scheme involves deputies of the Odesa Regional Council who took dozens of barges abroad through shell companies.

This was reported by the press service of the National Anti-Corruption Bureau of Ukraine.

The National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor's Office have brought to court a case of illegal seizure of property of Ukrainian Danube Shipping Company worth more than UAH 80 million.

The investigation established that in August 2017, two members of the Odesa Regional Council developed a scheme to misappropriate 32 lighter barges belonging to the state-owned company. They planned to use them to build new, larger vessels and then profit from them.

Three accomplices and the then head of UDP were involved in the fraud. Under his leadership, charter agreements for 18 lighters worth more than UAH 44 million were concluded with a company controlled by MPs. Subsequently, when the company's management changed, the organizers fraudulently entered into several more agreements for the transfer of 14 vessels, worth almost 38 million more.

All 32 lighters were transported to Turkey, where they were dismantled and 12 new heavy-duty barges were built. Then they were returned to Ukraine and registered to companies controlled by the scheme participants.

The NABU detectives found and arrested these barges, whose market value today exceeds UAH 150 million. The seized property was transferred to the ARMA.

At the same time, two officials of the state-owned enterprises Service and the Maritime Administration of the Black Sea Fishing Port were served with a notice of suspicion. According to the investigation, in 2020, they transferred state-owned tankers and a boat to a private company, underestimating the rent by at least UAH 16 million from the market price.

The officials entered into lease agreements by deliberately underestimating the value of state-owned vessels, which allowed the private company to use them virtually free of charge.

Анна Бальчінос