Categories: UKRAINE

A US company accuses the National Police and the Defense Ministry of extortion. They also say they have uncovered a scam

Sinclair & Wilde, a company that signed contracts with Ukraine’s Ministry of Defense for supplying military uniforms, alleges it faced bribery demands. This comes after Ukrainian law enforcement claimed to have uncovered a scheme involving the embezzlement of state funds, implicating the company.

The allegations were outlined in an open letter from Sinclair & Wilde, where the company “categorically denies the false and unfounded statements” made in a recent video by the National Police.

Earlier, the National Police stated that it had exposed a scheme involving a former advisor to the defense minister and an ex-parliamentarian who allegedly conspired to misappropriate budget funds through an order for over a million military clothing sets.

According to the police, contracts signed in 2022 were overpriced, defrauding a Turkish textile holding and Ukraine’s Ministry of Defense. The intermediary company reportedly signed five contracts worth over $35 billion, but the Turkish supplier claimed the uniforms could be provided for $10 billion less.

The alleged difference was to be pocketed by the former advisor, the ex-parliamentarian who advocated for the contracts, and an unnamed “foreign fraudster” who organized the scheme.

Meanwhile, Sinclair & Wilde claims the National Police, through its video, is attempting to “cover up its own internal corruption and the corruption within Ukraine’s Ministry of Defense.” The company asserts that the ministry repeatedly delayed payments and demanded bribes.

Sinclair & Wilde explains that it held five contracts with the ministry. Under the fifth contract, $12.5 million was supposed to be paid upfront but was deferred until after delivery. The company alleges that the ministry refused to pay this amount and outstanding debts from another contract.

Sinclair & Wilde justifies the increased costs compared to the Turkish company’s initial price by citing constant changes to delivery locations by the ministry and delays in unloading due to mismanagement.

“Throughout 2023, several individuals, including those implicated in U.S. and Ukrainian investigations, demanded bribes from Sinclair & Wilde to ensure payment of the remaining $14.5 million owed to the company. Sinclair & Wilde refused and reported these demands to authorities in the U.S. and Ukraine,” the company states in its letter.

Neither the Ministry of Defense nor the National Police has commented on the corruption allegations so far.

Justyna Lisova

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Sonya P

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