Analysts of the Bureau of Economic Security (BEB) found that more than 60% of Yegoza-type barrier barriers, which are manufactured by penal institutions under the control of the State Criminal Enforcement Service, are sold to intermediary companies. This led to budget losses estimated at UAH 300 million since the beginning of the year. About this reported BEB press office.
Experts found out that about 45% of such products are sold directly to state bodies, and the rest through commercial structures that add a markup of up to 45% to the cost of the product before selling it to state institutions.
Andriy Pashchuk, deputy director of the BEB, noted that during martial law, military administrations are forced to buy barrier structures at inflated prices from intermediaries, although the products are manufactured by state institutions.
“Currently, state institutions often refuse to sell these materials directly to administrations, citing already concluded contracts with intermediaries and the inability to expand production“, Pashchuk added.
In order to avoid further budget losses, the Ministry of Justice sent a recommendation to the Ministry of Justice regarding the monitoring of the volume of implementation of Yegoza-type barrier lines and other materials to commercial enterprises.
In addition, the Bureau’s specialists proposed to prioritize the execution of orders from state bodies.
It is also worth noting that the State Enterprise “Forests of Ukraine” concluded an agreement with the Ministry of Defense for the supply of almost 65,000 cubic meters of round timber for the construction of fortifications. The engineering divisions of the Armed Forces of Ukraine plan to use these materials for the construction of defensive fortifications on the front line — dugouts, trenches, firing points.
