Serhii Kapshtyk, former director of Ukrkosmos State Enterprise, and former freelance advisor to Mykhailo Hrinshpon, director general of the National Space Agency of Ukraine, were found guilty of causing USD 8 million of losses to the state enterprise.
Between 2011 and 2014, the participants of the corruption scheme allegedly withdrew abroad and legalized USD 8 million. This amount was part of the USD 292 million provided to Ukraine by the Export Development Canada to build and launch the first telecommunications satellite.
According to the investigation, as part of the implementation of Lybid National Satellite Communication System project, a series of international contracts and loan agreements were concluded, backed by state guarantees from Ukraine. Under the plan, Canada was to manufacture and launch a Ukrainian satellite into orbit, and Ukraine was to receive a modern communication system.
However, the investigation found that the Director General of the state enterprise Ukrkosmos, Kapshchyk, acting in collusion with businessman Hrinshpon, who controlled one of the subcontractor companies, abused his official position to embezzle state funds.
While on an official business trip in Canada, Kapshchyk unlawfully signed a letter instructing the Canadian side to transfer part of the loan funds — $26.1 million — to a company controlled by Hrinshpon. This company was not a party to the main project contracts and did not perform any actual work under them.
After receiving these funds, between May and August 2011, Hrinshpon transferred $8.2 million to accounts of third parties without any economic justification or legal basis. As a result of these actions, the state enterprise suffered losses amounting to over UAH 65.7 million.
Due to these actions, the launch of the Lybid satellite was derailed. Although the project was stopped in 2018, the state budget continued to pay the loan: USD 25 million annually.
Kapshtyk is charged under Article 364(2) of the Criminal Code of Ukraine, and Hrinshpon’s actions were classified under Article 364(2), Article 191(5), and Article 209(3) of the Criminal Code of Ukraine.
The HACC found Kapshchyk guilty and sentenced him to five years of imprisonment; however, he was released from serving the sentence due to the expiration of the statute of limitations. The proceedings against Hrinshpon were closed due to his death.
The HACC Appeals Chamber upheld the decision without changes.
02/10/2019
Imprisonment
