In October 2017, a journalist investigation on massive embezzlement in the defence industry was published. Some of the presented facts were known as early as in 2015, however, the general picture became clear in 2017 only. It was striking, to say the least. To procure the necessary military equipment and parts, numerous shell companies were used. They were operated by the families of state officials. A chain of companies was aimed not only to get the equipment quietly, but also to inflate its final price for the Ukrainian defence. The President's team managed to retort the corruption accusations by alleging that journalists wrecked a covert scheme of secret parts obtaining - as many countries are reluctant to sell arms to any country that is, in fact, at war.
In 2017 the dispute was mostly concluded. How come it came back?Unfortunately, President Poroshenko became notorious for his corruption. The Army procurements were managed by Oleh Hladkovskyi, his old business partner. Some supply chains were under control of Ihor Hladkovskyi, Oleh's son. The evidence proved he acted in the most cynical way by inflating prices and making the Government pay more. Besides, the investigation revealed another uncomfortable fact that Ukrainian Government prefers to avoid to speak about: having no possibility to substitute old Soviet parts, Ukraine purchases them from Russia via shell companies. Fortunately, the Russians are corrupt enough to sell vital military equipment parts to Ukraine.
Yulia Tymoshenko used the investigation as a pre-text to initiate Poroshenko's impeachment - even despite the fact that currently there is no impeachment procedure and even if it were in place, the election is to take place in just a month, on March 31, 2019. Reasonably, Poroshenko's team claimed the investigation to be politically charged.
Nobody believes that official investigation by law enforcement will be able to call Poroshenko's allies to account. Ukrainian state operator of the defence industry UkrObronProm accused journalists of manupilation. MP Iryna Lutsenko says Hladkovskyi may sue journalists for defamation.