Zelenskyy signs law on transparency of procurement in Defense Ministry

Zelenskyy signs law on transparency of procurement in Defense Ministry

President Volodymyr Zelenskyy has signed Law No. 8381 on introducing transparency in defense procurement.

Source: Bill on the website of the Verkhovna Rada

Details: It is reported that the document was returned with the President’s signature on it on 21 March.

backgrounds:

  • On 24 February, the Verkhovna Rada approved bill No. 8381 On Amendments to the Law On Defense Procurement.

  • In January, a scandal erupted over procurement by the Ministry of Defense. ZN.ua outlet reported that the Ministry of Defense was purchasing food for military personnel at rates that were two to three times higher than in Kyiv shops. The December agreement with Active Company was signed on behalf of the ministry by Bohdan Khmelnytskyi, who was involved in a case of embezzlement of US$580,000 during the purchase of military ammunition.

  • The information about “chicken’s eggs for 17 hryvnias” gained the most publicity: the journalists’ investigation referred to the price per egg, although the document stated the price per 100 grams.

  • Viacheslav Shapovalov, Deputy Minister of Defense, resigned on 24 January 2023 due to the scandal over food procurement for the Ukrainian military at inflated prices. Bohdan Khmelnytskyi, Head of the State Procurement Department at the Ministry of Defense of Ukraine, who was involved in the food procurement scandal, was also dismissed from his position, which became known on 25 January.

  • After that, Prime Minister Denys Shmyhal ordered an update of the public procurement system for the Armed Forces of Ukraine, which would include the publication of prices for food and goods.

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