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Embezzlement of International Aid During the War: What Ex–MFA State Secretary Oleksandr Bankov Is Accused Of

Embezzlement of International Aid During the War: What Ex–MFA State Secretary Oleksandr Bankov Is Accused Of
Embezzlement of International Aid During the War: What Ex–MFA State Secretary Oleksandr Bankov Is Accused Of

Today, July 29, the HACC is deciding on a preventive measure for Oleksandr Bankov, former state secretary of the Ministry of Foreign Affairs. The NABU and the SAPO exposed him and his accomplices on July 27.

The prosecutor opened by outlining the substance of the suspicion against Bankov. According to the NABU-SAPO, the former MFA state secretary formed an organized group together with Ramiz Ramazanov, former head of his office; Vladyslav Rieznikov, founder of Center for International Cooperation Support NGO; and an accountant.

Investigators say the group's goal was to misappropriate and launder charitable funds. Since Bankov could not formally found the NGO given his position as MFA state secretary, he exercised actual control over it and promoted it through a memorandum of cooperation with the MFA — under which international aid funds were to flow to the accounts of the Center for International Cooperation Support.

The investigation identified three episodes in the scheme:

  1. Misappropriating contributions from Japan. Using over UAH 17.2 million in donations received at the accounts of Ukraine's Embassy in Japan, Bankov initiated a change to the reporting procedure and ordered the funds transferred to the controlled NGO. The group first received two tranches of $500,000 each, purportedly for assistance to the Armed Forces and civilians, and converted the full amount to cash.
  2. Manipulating the Renew Democracy Initiative (RDI) fund. Having gained the trust of the American organization, Bankov signed grant agreements on the NGO's behalf, citing his position as state secretary. The group brought in genuine service providers but significantly inflated the cost of their services in the documentation. Through falsified reporting, approximately UAH 8 million was cashed out from a total of $700,000 in grants.
  3. Laundering the funds. The money was funneled out in three stages: UAH 3.5 million through the controlled company West Estate; UAH 20 million routed through the accounts of seven sole proprietors to sham partnerships; and a further UAH 13.7 million through conversion centers and a chain of 4–5 “cash points,” with commissions paid for cashing out.

The hearing is ongoing, with the SAPO prosecutor presenting evidence to support the grounds for the suspicion against Bankov.