Spectechnoexport operations blocked due to PGO steps

Operation of state-owned enterprise Spectechnoexport has been blocked, as the Prosecutor General's Office (PGO) is conducting investigative activities in the company, and the statements of the PGO that the company's top managers embezzled UAH 200 million of defense budget are untrue, the press service of the enterprise has reported.

The company said on November 2, 2017 that the PGO is investigating into the implementation of a contract to service exports of a private company.

"The foreign contractor paid for the products supplied, not the state. The goods were delivered in line with the Ukrainian legislation," the press service said, adding that accusations of embezzlement of defense budget are inappropriate.

Funds found in a house of the director of Spectechnoexport were declared, and he funds were seized in violation of the law.

"The State Fiscal Service knows the information on the legal origin of the funds found in the house of the head of the state enterprise Spectechnoexport and their declaration. It is also open to the public, while the cash was seized in the absence of a court's ruling," the press service said.

"At the moment, in connection with the investigative actions, the activity of Spectechnoexport has been actually blocked, and, as the staff of Spectechnoexport believes, this is the ultimate goal of the investigators," the press service said.

The PGO said on its Facebook page earlier on November 2 that a criminal case was opened by the State Fiscal Service under procedural direction of the PGO. The embezzlement of UAH 198 million by officials of Spectechnoexport was revealed via removal of funds via shell companies. Some $120,000 in cash was seized during the raid of the Spectechnoexport director's house.