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Open Letter of SE SFTE "SpetsTechnoExport” to the Acting Head of the Security Service of Ukraine Mr. Ivan Bakanov
24.07.2019

Dear Mr. Ivan Bakanov,

In connection with the dissemination by the Security Service of Ukraine of information about the alleged “large-scale abuse of SE SFTE “SpetsTechnoExport ” officials, as a result of which damage was caused” due to “concluding a contract without real demand”, we are forced to address you with this open letter.

As you know, SE SFTE “SpetsTechnoExport” has concluded a state contract with the State Border Guard Service of Ukraine (hereinafter - the Customer) for the supply of a Early Warning System (hereinafter - the System). This System was selected directly by the State Border Guard Service of Ukraine, which representatives have visited the production facilities of a manufacturing plant in the United States in order to study System technical characteristics, even before concluding a state and a foreign economic contracts.

The State Border Service of Ukraine has issued technical requirements for an Early Warning, Detection and Identification System (Decision of SBSU Administration of 05 October 2015 No.18), which were later defined in the State Defense Improvement and Security Program approved by the Resolution of the Cabinet of Ministers of Ukraine of 07 October 2015.

Please note that SE SFTE “SpetsTechnoExport” is only an intermediary (special exporter) determined by the legislation and is not a manager of public funds. Our company does not determine the presence or absence of the demand for purchasing one or another product, this demand is determined by the Customer or its highest management body (in this case, the Ministry of Interior of Ukraine and the Cabinet of Ministers of Ukraine). SE SFTE “SpetsTechnoExport” does not form the State Defense Order and does not control its implementation.

The System ordered by the State Border Service of Ukraine was purchased and supplied to SBSU basing on the State contract, State guarantees provided by the Cabinet of Ministers of Ukraine and the loan taken out by our company.

Any “abuses” of SFTE "SpetsTechnoExport" officials are excluded - the System was delivered, the payment was transferred to the manufacturer in the USA on the basis of an irrevocable letter of credit after manufacturer has presented documents confirming the delivery. The System was put into operation and adopted by the State Border Service of Ukraine. In addition, as you know, during a visit to Mariupol at the end of 2016, U.S. Senators John McCain, Lindsey Graham and Amy Klobuchar have personally visited the System installation site.

The System is currently operated by the State Border Service of Ukraine. American manufacturer has opened a service center in Ukraine that provides warranty and post-warranty servicing and technical support of System operation. Our company provides the organization of such services within the framework of the State contract.

Therefore, any statements and public accusations of “abuse” are far-fetched, manipulative and  damaging the special exporter and its staff business reputation at international markets. In recent days, we were addressed by many partners. They are concerned about the presence of such inexplicable accusations, which, moreover, were distorted and interpreted in different ways in mass media.

From the information released by the Security Service of Ukraine, it remains unclear which “large-scale abuses” of SE SFTE “SpetsTechnoExport” officials were “exposed” and how the state enterprise could organize the supply of defense-related products without a demand determined by the authorized state bodies. The announcement of the General Prosecutor's Office of Ukraine on this subject seems to be more restrained and balanced.

In connection with the above, we ask you to refrain from statements that do not reflect the reality and cause damage to our company business reputation until the completion of the trial, and provide a denial of information released by the Security Service of Ukraine.

In turn, SE SFTE “SpetsTechnoExport” and its officials, that assisted the investigation and voluntarily provided all the requested documents, will continue to provide maximum assistance in order to establish the truth in this matter ASAP.



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Contact Information

ABOUT SPETS TECHNO EXPORT

State Foreign Trade Enterprise “SpetsTechnoExport” is a fully state-run entity incorporated by the Government of Ukraine in 1998 for export-import activities at foreign armaments markets.

HEAD OFFICE

7, Stepana Bandery Avenue
Kyiv, 04073, Ukraine
tel: +380 44 5685070
fax: +380 44 5685068
E-mail: office@ste.kiev.ua

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New Delhi, India
е-mail: ste@ste.com.ua
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е-mail: nashik@ste.kiev.ua

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