Ukrainian anti-corruption bureau concludes probe into USD 5.6 million drone scam

KYIV: Ukraine’s National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) have concluded their investigation into an alleged graft scheme involving the procurement of military drones. The probe revealed that officials from the State Service of Special Communications and Information Protection (SSSCIP) purchased over 5,000 drones at heavily inflated prices, resulting in a loss of approximately UAH 254 million (USD 5.65 million, or roughly Rs 47 crore).

The alleged fraud operated between May and September 2023, shortly after the SSSCIP received USD 667 million specifically allocated for military drone purchases. Investigators found that a department head at the cybersecurity agency rigged contracts for 5,100 DJI and Autel drones, paying up to 90 per cent above prevailing market rates. The winners of these tenders were predetermined, with shell companies brought in merely to create a facade of competition.

Five individuals have been identified as suspects in the case, including Vladimir Mokrenko, a former procurement chief at the SSSCIP, and Lviv-based businessman Yury Volyan. The remaining suspects comprise another agency official and two private-sector representatives accused of participating in the rigged bids. To recover the misappropriated funds, authorities have frozen over USD 4 million held in overseas corporate accounts and UAH 17 million (approx Rs 3.5 crore) within Ukraine.

The price inflation was achieved by transferring the difference to accounts of controlled companies, including those located abroad. This investigation coincides with the final months of the tenure of then-SSSCIP chief Yury Shchigol and his deputy, Viktor Zhora, who were dismissed in November 2023 amid a separate corruption scandal involving USD 1.72 million in software overpayments.

The conclusion of this drone probe also follows a period of political turbulence for the anti-graft agencies. In August 2025, the independence of NABU and SAPO was restored by the Ukrainian parliament following nationwide protests against an attempt to bring them under the control of the prosecutor-general. European allies had warned that curbing the powers of these institutions jeopardised Ukraine’s bid for European Union membership.

The scale of the alleged misappropriation highlights the persistent challenges Ukraine faces in securing its defence supply chains amidst an ongoing conflict. While the SSSCIP was tasked with a massive USD 667 million procurement mandate, the 60 to 90 per cent markups indicate deep-rooted systemic vulnerabilities in tender oversight. Furthermore, the freezing of USD 4 million in foreign accounts underscores the transnational nature of modern procurement fraud, requiring complex international cooperation to trace and recover illicit assets.

As the pre-trial investigation concludes, the case will now move to the courts, where the suspects will face charges of large-scale property misappropriation. The outcome of this trial will be closely watched by international allies, as the efficacy of Ukraine’s anti-corruption institutions remains a critical benchmark for its European integration aspirations.