The Case of Former Design Bureau Director Vadym Shtepenko: Procurement Misconduct

The Case of Former Design Bureau Director Vadym Shtepenko: Procurement Misconduct
Start of the trial 28 December 2019
Instance HACC
Stage of criminal proceedings Judicial proceedings

The HACC discharged former Director General of State Enterprise Artillery Armament Design Bureau Vadym Shtepenko from criminal liability due to the expiry of the statute of limitations.

Shtepenko had been charged with official negligence — that is, the improper performance of official duties through a careless approach to them.

In July 2015, Shtepenko was temporarily appointed acting Director General of State Enterprise Artillery Armament Design Bureau (the AADB) pending the conclusion of a contract with a new permanent director.

 Vadym Shtepenko. Photo from his Facebook profile
Vadym Shtepenko. Photo from his Facebook profile

The enterprise's activities focus on scientific, technical, and commercial work in the development and production of artillery armament and ammunition. The enterprise has its own balance sheet, bank accounts, seal, and trademark, and may enter into contracts, acquire rights, and bear liability in court.

As an AADB official, Shtepenko was fully aware that suppliers of goods or services had to hold "qualified supplier" status. Despite this, in December 2015 he signed a supply contract with Prom-Technology Company LLC, even though the supplier did not hold qualified status. The contract was signed without conducting the required price analysis.

Using his electronic signature and access to the AADB account, Shtepenko transferred UAH 1.89 million to Prom-Technolody Company LLC's account in violation of statutory requirements.

He also instructed subordinate staff to allow vehicles through the enterprise's checkpoint without proper documentation, thereby securing receipt of the goods under the supply contract — a complete transformer substation unit with a meter, a transformer, and 22 distribution cabinets, with an actual value of UAH 207,000.

As a result, AADB sustained losses of UAH 1.6 million.

Shtepenko was initially charged under Article 364(2) of the Criminal Code of Ukraine, but the charges were later reclassified under Article 367(2).

The HACC discharged Shtepenko from criminal liability due to the expiry of the statute of limitations. The criminal offense with which he was charged dated to December 24, 2015, and qualifies as a non-grave offense, for which the statutory limitation period is five years. The limitation period in this case therefore expired on December 23, 2020.

 

Proceeding No. 42017110330000006
Case No. 991/3090/19
Date the hearing was scheduled 02/01/2020
Subject
  • Head of a state or municipal enterprise/institution
Qualification
Article 191, part 5, Article 364, part 2, Article 191, part 4
Pre-trial cases №
  • 991/861/19
Instance Key parties
HACC 28/12/2019 Panel of judges: Dubas V.M., Zadorozhna L.I., Shkodin Ya.V.
CASE OF VADYM SHTEPENKO
Judicial proceedings

The HACC discharged former Director General of SE Artillery Armament Design Bureau Vadym Shtepenko from criminal liability due to the expiry of the statute of limitations. The investigation had charged him with official negligence — entering into a contract with an unqualified supplier and authorizing a UAH 1.89 million payment, causing the enterprise UAH 1.6 million in losses.

Article 367(2) of the Criminal Code of Ukraine

  • pic
    2015–2016
    Shtepenko allegedly inflated the procurement price of a transformer and cabinets for the Artillery Armament Design Bureau
  • January 18, 2017
    Pre-trial investigation commenced
  • pic
    October 21, 2019
    Notice of suspicion served on Shtepenko
  • November 25, 2019
    Shtepenko detained
  • November 26, 2019
    Pre-trial investigation completed
  • pic
    November 27, 2019
    The HACC remanded Shtepenko in custody with bail set at UAH 153,680
  • December 28, 2019
    Case referred to court
  • March 5, 2020
    The HACC scheduled the case for trial on the merits
  • pic
    November 24, 2020
    The HACC reduced bail to UAH 131,820
  • pic
    November 5, 2021
    The HACC reduced bail to UAH 95,160
  • pic
    May 16, 2022
    The HACC reduced bail to UAH 62,025
  • pic
    December 12, 2022
    Shtepenko placed on the wanted list; proceedings suspended
  • March 1, 2023
    Proceedings resumed
  • pic
    August 1, 2023
    The HACC reduced Shtepenko's bail to UAH 32,208
  • January 19, 2024
    The HACC closed the criminal proceedings due to the expiry of the statute of limitations

Decisions from the Register

Case No. Court Decision date Decision type
991/861/19 HACC 17/10/2019
991/861/19 HACC 21/10/2019
991/861/19 HACC 25/10/2019
991/861/19 HACC 25/10/2019
991/861/19 HACC 29/10/2019
991/861/19 HACC 31/10/2019
991/861/19 HACC 31/10/2019
991/861/19 HACC 14/11/2019
991/861/19 HACC 14/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 25/11/2019
991/861/19 HACC 26/11/2019
991/861/19 HACC 26/11/2019
991/861/19 HACC 26/11/2019
991/861/19 HACC 26/11/2019
991/861/19 HACC 26/11/2019
991/861/19 HACC 27/11/2019 On the imposition of an interim measure in the form of detention
991/861/19 HACC 27/11/2019 On the imposition of an interim measure in the form of detention
991/861/19 HACC 09/12/2019
991/861/19 HACC 09/12/2019
991/861/19 HACC AC 11/12/2019 On the return of the appeal
991/861/19 HACC 12/12/2019
991/861/19 HACC 19/12/2019
991/861/19 HACC AC 24/12/2019 On the refusal to open appeal proceedings
991/3090/19 HACC 28/12/2019 On the appointment of a preparatory court hearing
991/861/19 HACC AC 16/01/2020 On the imposition of an interim measure in the form of detention
991/861/19 HACC AC 16/01/2020
991/3090/19 HACC 28/02/2020
991/3090/19 HACC 28/02/2020
991/3090/19 HACC 05/03/2020 On the appointment of a trial
991/3090/19 HACC 05/03/2020 On the appointment of a trial
991/861/19 CCC 30/03/2020 On the refusal to open cassation proceedings
991/3090/19 HACC 25/09/2020
991/3090/19 HACC 25/09/2020
991/3090/19 HACC 25/09/2020
991/3090/19 HACC 25/09/2020
991/3090/19 HACC 24/11/2020 Decision on the return of bail
991/3090/19 HACC 24/11/2020 Decision on the return of bail
991/3090/19 HACC 22/03/2021
991/3090/19 HACC 22/03/2021
991/3090/19 HACC 05/11/2021 Decision on the return of bail
991/3090/19 HACC 05/11/2021 Decision on the return of bail
991/3090/19 HACC 16/05/2022 Decision on the return of bail
991/3090/19 HACC 16/05/2022 Decision on the return of bail
991/3090/19 HACC 12/12/2022 On the suspension of court proceedings
991/3090/19 HACC 12/12/2022 On the suspension of court proceedings
991/3090/19 HACC 01/03/2023 Decision on the implementation of remote court proceedings
991/3090/19 HACC 24/07/2023 Decision on the return of bail
991/3090/19 HACC 24/07/2023 Decision on the return of bail
991/3090/19 HACC 01/08/2023
991/3090/19 HACC 01/08/2023
991/3090/19 HACC 27/01/2024
991/3090/19 HACC 27/01/2024