The budget lost UAH 300 million due to schemes with resale of barbed wire for fortifications
13 November 16:35
More than 60% of Egoza barriers manufactured by penitentiary institutions of the State Penitentiary Service are sold to intermediary companies. Due to such actions, as the BES experts found out, the budget has already lost about UAH 300 million since the beginning of the year. This was reported by the Bureau of Economic Security, Komersant ukrainskyi reports.
According to the report, commercial intermediary companies resell the goods to government agencies, setting a markup of up to 45 percent.
“In the context of armed aggression, military state administrations are forced to buy barrier barriers at an inflated price from commercial enterprises, although the products are manufactured by state institutions. However, at present, they mostly refuse to purchase these materials for fortifications,” said Andriy Pashchuk, Deputy Director of the BES.
According to him, the producers explain their actions by allegedly having already concluded agreements with intermediaries and the lack of opportunities to increase production.
In order to eliminate the preconditions for budget losses, the BES sent a recommendation to the Ministry of Justice to monitor the volume of sales of Egoza-type barriers and subtle obstacles to commercial enterprises. The Bureau of Economic Security also suggested considering prioritizing the fulfillment of orders from government agencies.
