Former Ukrainian official placed under house arrest amid graft allegations

ISTANBUL

A former deputy minister in Ukraine has been placed under house arrest amid a report by the country's anti-corruption office that found the official had illegally accepted $400,000.

Ukraine's high anti-corruption court on Tuesday placed Vasyl Lozynsky, who served as former deputy minister for the development of communities, territories and infrastructure, under house arrest until March 22, 2023, according to state news agency Ukrinform.

The report also said that the specialized anti-graft prosecutor in the case had earlier filed a petition with the court asking that Lozynsky be taken into custody with the possibility of bail amounting to 50 million Ukrainian hryvnia ($1.3 million).

The National Anti-Corruption Bureau (NABU) previously announced that it suspected Lozynsky had illegally accepted $400,000, with charges also brought against an unnamed confidant, an entrepreneur, and two accomplices.

"As established, in the summer of 2022, the entrepreneur offered the official to purchase mobile boiler rooms from his company at inflated prices under direct contracts, i.e. outside the tender procedure. This was possible due to the urgent need for materials and equipment for the uninterrupted passage of the 2022-2023 heating season," said a statement by the NABU.

It also said that the entrepreneur involved two others to help in preparing an offer to the ministry with prices 25-30% higher than the market average and also to distort the results of cost monitoring to make them appear lower.

"To this end, the entrepreneur involved several controlled companies that allegedly offered similar equipment at even higher prices. The deputy minister accepted the offer and requested a remuneration for his services of 7-10% of the contract amount. The undue benefit was to be provided in parts, based on the contract payments schedule," it added.

Multiple Ukrainian officials either stepped down or were relieved of their duties on Tuesday amid steps by Kyiv to combat allegations of corruption in the government.