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A defendant in Kropachov’s coal case will give incriminating testimony against the scheme’s organizers: VAWC approved the plea deal
The High Anti-Corruption Court approved a plea agreement with one of the defendants in the case about the embezzlement of funds from state-owned coal-mining enterprises. The accused agreed to provide incriminating testimony about the likely organizers of the scheme and other participants, and received seven years of imprisonment with a probationary period.
The defendant’s name has not been officially disclosed. Meanwhile, media reports indicated that it concerns the director of Ukrainian Broker LLC, Oleksandr Dyrda.
How the coal procurement scheme operated
The case is part of the so-called coal case of businessman Vitaliy Kropachov. According to NABU and SAP, in the 2016–2018 years the criminal organization effectively controlled procurements for three state-owned coal-mining enterprises: Shakhtoupravlinnya Pivdennodonbaske No. 1, Selydivvuhillia, and Myrnohradvuhillia.
The investigation identified violations in 69 procurements. Contracts based on those results were mostly awarded to Donenergoexport LLC. The total cost of procurements at inflated prices amounted to nearly 174,5 million UAH, and the amount of unlawful overpayment exceeded 51,17 million UAH.
According to the indictment, the organization was created in August of 2016. It had a three-tier structure in which each group of participants performed separate functions.
Kropachov, intermediaries, and the tender committees
The first tier, according to the indictment, included Vitaliy Kropachov and another unidentified person. They were assigned the role of overall leadership: finding participants, coordinating their actions, distributing responsibilities and profits. Materials related to these individuals were separated into a distinct criminal proceeding.
The second tier, according to the investigation, comprised Donenergoexport LLC director Valentyn Hornostaiev and Oleksandr Dyrda. They allegedly organized the work of controlled companies, set starting prices and markup levels, prepared tender proposals, and sought actual suppliers.
Dyrda, in particular, was responsible for work in the Prozorro system and had access to the bank accounts of one of the companies.
The third tier, according to the indictment, included members of the tender committees of the state enterprises. They were to announce procurements on agreed terms, reject competitors’ proposals, and ensure the victory of the required companies.
Some participants of this tier have already been convicted based on plea agreements. Among them is Tetyana Ruda, secretary of the tender committee of Myrnohradvuhillia.
Fake competition and inflated prices
The main supplier in the scheme was Donenergoexport LLC. To create an appearance of competition, the prosecution alleges that other companies were used—so-called support companies.
These included TrialtTrade LLC, for which a nominal director was brought in in September of 2016, and Universal Invest-Stroy LLC, where a similar role was performed by another nominal manager since March of 2017. The materials also mention Febrero LLC.
According to the investigation, the real goods were shipped by manufacturers including Veles Met, AV Metal Group, and Smart-Prime 1. However, transactions were documented through intermediaries, which allowed increasing the final price of the products.
The case materials state that potential suppliers were told that payment would be made only to those who worked through the designated system and that the issue needed to be coordinated with Kyiv.
Dyrda admitted guilt and agreed to testify
Oleksandr Dyrda was found guilty of creating and participating in a criminal organization, as well as of misappropriating property of state enterprises on an especially large scale. These are offenses under Part Four of Article 28, Part Five of Article 191, and Part One of Article 255 of the Criminal Code of Ukraine.
Part of the court hearing was held in closed session. The reason was the defendant’s intention to provide incriminating testimony about participants of the organization’s first and second tiers.
The prosecutor told the court that Dyrda did not receive financial reward from the scheme. The accused fully admitted his guilt and agreed to partially compensate the damage — to pay 1 million UAH.
VAWC imposed a final punishment of seven years of imprisonment and deprived him of the right to hold positions related to public procurement for three years. At the same time, Dyrda was released from serving the main sentence and given probation for three years. The court did not apply property confiscation.
What will happen to the seized property
After the verdict takes legal effect, the seizure of Dyrda’s property imposed in 2020 will be lifted. It concerned BMW X5, Nissan Micra and Honda Civic vehicles, an apartment, and a non-residential premises.
A bail of 1,26 million UAH must also be returned to the pledgor.
The verdict can be appealed to the VAWC Appeals Chamber subject to the limitations provided for plea agreements.
Materials concerning other participants in the case, including the likely organizers, are being considered separately. Dyrda’s expected testimony may become an important part of the continued review of the case on procurements at state-owned coal-mining enterprises.
Document: PDF proof of the original version of the news item "Фігурант вугільної справи Кропачова дасть викривальні свідчення на організаторів схеми: ВАКС затвердив угоду". It records the publication content at the moment of the first scan, the preservation date and the source: ANTIKOR.
