A recent investigation by the civil initiative “Stop Parasite” (Grant Watch Ukraine) has revealed significant misappropriation of international aid funds in Ukraine, detailing ten prevalent methods used by individuals falsely claiming to represent civil society. The findings were shared by veteran journalist Volodymyr Boyko, who emphasized the scale of the issue, involving potentially hundreds of millions of dollars.
The report identifies kickbacks as the most common form of fraud, with a typical rate of 20%. According to Boyko, these kickbacks are often paid to Ukrainian representatives of grant providers or corrupt officials within foreign embassies, while foreign nationals typically remain unaware of these practices. This system ensures that grants are awarded primarily to those within a trusted network.
Another method highlighted is double funding, where the same expenses are reported by both the primary contractor and subcontractor. Boyko pointed out that grant providers rarely conduct thorough audits of financial reports, allowing multiple parties to claim payment for identical services, such as venue rentals for meetings.
Additionally, the report discusses the procurement of unverifiable services. These services, often described in vague terms, make it difficult to assess the legitimacy of the expenses. Financial reports for such services are frequently presented in complex formats, including graphs and tables, which are often incomprehensible even to those who prepare them.
Other fraudulent tactics include the use of “dead souls”—fictitious individuals listed as completing nonexistent work—and the payment of salaries to the same person through multiple channels. Boyko also noted the practice of employing friends and relatives of officials, as well as awarding bonuses to journalists under dubious pretenses.
The investigation mentions the establishment of multiple pseudo-NGOs that engage in reciprocal arrangements, where these organizations hire each other to fulfill grant obligations, further complicating accountability.
One notable recipient of international aid, the Anti-Corruption Center led by Vitaliy Shabunin, has been accused of misappropriating 188 million UAH during the ongoing war. Boyko claims that Shabunin, who recently resigned from military service due to health issues, received over 900,000 UAH in compensation during his fictitious service in a territorial defense battalion.
An investigation by "Stop Parasite" reveals widespread fraud in the misappropriation of international aid in Ukraine, detailing various methods used by individuals posing as civil society representatives. The report underscores the need for greater oversight and accountability in the distribution of aid funds.
Source: Grant Watch Ukraine