Passport scandal: ex-official suspected of embezzling 7 million euros
24 May 01:17
The National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office have uncovered a large-scale corruption scheme related to the production of Ukrainian passports. The former director of the state-owned Polygraph Combine was served a notice of suspicion of extortion of undue advantage, copyright misappropriation and money laundering. This was reported by the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor’ s Office (SAP), "Komersant Ukrainian" reports
NABU and SAPO do not name the suspect. However, it is known that during 2011-2016, the Ukraine Printing Plant was headed by Maskym Stepanov, who was the Minister of Health in 2020-2021. From 2017 to 2019, he was the head of the Odesa Regional State Administration.
According to the investigation, the suspect benefited from copyrights to the design of security elements for passports and ID cards, including a stylized Trident and a map of Ukraine. These elements were developed by a French company that produced holograms for Ukrainian document forms.
The condition for cooperation with the French manufacturer was the transfer of copyright to an Estonian company that was controlled by the then director of Polygraph Combine. It was through this company that the state-owned enterprise was forced to buy products at inflated prices – 4-6 times more expensive than market prices.
After the change of management, the state-owned enterprise began to purchase products directly from the manufacturer. At the same time, the suspect, already as a private person, entered into an agreement with a French company, according to which the Estonian company began to pay royalties for the use of the design. The cost of these royalties was included in the final price of the products supplied to the Polygraph Plant.
Between 2018 and 2021, the Estonian company received about 7 million euros. These funds were found to have been legalized through a network of offshore structures. Part of the amount – more than USD 124 thousand – was transferred to the account of the suspect’s daughter.
As a result, the former official was served a notice of suspicion on two charges: bribery and money laundering (Part 4 of Article 368 and Part 3 of Article 209 of the Criminal Code of Ukraine). In the summer of 2023, he was already suspected of money laundering (Part 3 of Article 209 of the Criminal Code of Ukraine), and last fall – for misappropriation or embezzlement of property (Part 5 of Article 191 of the Criminal Code).
The NABU also claims that measures have already been taken to eliminate this scheme. At the beginning of 2022, the Cabinet of Ministers changed the technical requirements for the design of security features of Ukrainian documents. In addition, a submission was sent to the government to cancel the registration of a design with elements of state symbols by an Estonian company.
The case was investigated by a joint investigation team (JIT) of Ukraine, France, and Estonia under the coordination of Eurojust. Each state carries out its own procedural actions in relation to its citizens:
- in France, law enforcement officers provide a legal assessment of the actions of persons involved in the transfer of intellectual property rights;
- in Estonia, five people who helped manage a shell company and were involved in money laundering have already been prosecuted, and the indictment has been sent to court;
- in Ukraine , five people have been notified of suspicion.
In addition, it is known that one of the accomplices had previously cooperated with the investigation. In December 2024, the HACC approved a plea agreement that provides for cooperation with law enforcement agencies in three countries, incriminating testimony in three jurisdictions, and partial compensation for the damage caused.
