Case description
The HACC found former director of two private enterprises, Volodymyr Bobyl, guilty as an accomplice in the abuse of office committed by officials of the State Center for Seed Certification, which resulted in losses of UAH 13.4 million.
The Center for Certification and Expertise of Seeds and Horticultural Material (CCESHM) is a state-owned enterprise with branches in every region of Ukraine. Its mandate is to assess the quality and safety of agricultural products, as well as varietal and sowing qualities of seeds. The Center manages significant land plots for these purposes. However, it does not have its own production facilities for full-scale sowing and crop care, and therefore engages private companies to cultivate the land.
According to the investigation, officials of the Poltava branch of the Center implemented a corruption scheme consisting of two separate episodes of abuse.
First episode. In 2020, the Poltava branch concluded contracts with two private companies for the cultivation of CCESHM land. These companies, headed by Volodymyr Bobyl, lacked equipment and personnel, and therefore engaged farmers to carry out the work. Farmers in fact performed the entire range of tasks up to the harvesting stage. Once the works had already been completed, Bobyl, acting on behalf of the companies, initiated amendments to the contracts to increase the price for services already rendered. Officials of the CCESHM branch unlawfully approved such changes, despite the absence of any legitimate grounds. As a result, the cost of works was artificially inflated, and the overpaid funds were retained by the counterparties.
Second episode. At the beginning of 2020, the same two companies again acted as counterparties of the Poltava branch. This time, the branch undertook to supply them with corn from the upcoming harvest. The initial terms of the contracts required that the supply price be adjusted to the market price at the time of delivery. Later, the suspects deliberately amended the contracts to remove this requirement. Following these changes, the corn was sold to the private companies at nearly half the market price, causing further losses.
In total, the actions of the Center’s officials caused losses amounting to UAH 13.4 million. According to the detectives, those involved in the scheme included the then-head of the CCESHM, the head of its Poltava branch Chuiasov, director of the two companies Volodymyr Bobyl, and the ultimate beneficial owner of the companies.
Before the court, Bobyl unconditionally admitted his guilt. The HACC approved a plea agreement and found him guilty of committing a crime under Article 364(2) of the Criminal Code of Ukraine. He was sentenced to three years’ suspended imprisonment with a probationary period of two years, a two-year ban on holding certain positions, and a fine of UAH 8,500. Bobyl also undertook to transfer UAH 100,000 to the account of the CCESHM.
Another participant in the scheme — director of the Poltava branch Chuiasov — also entered into a plea agreement. He received a suspended sentence and partially compensated the losses.
