Defence firm paid Ukrainian broker to secure $92M, sole-sourced contract with Ottawa, lawsuit says

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Defence firm paid Ukrainian broker to secure $92M, sole-sourced contract with Ottawa, lawsuit says
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Roshel Inc. countersuing ex\u002Demployee for $11 million in damages for “defamation, malicious falsehood” and breach of contract

“Roshel and Mr. Shimonov have conducted themselves with the utmost honesty and integrity in their business dealings generally and in relation to the contracts referenced in the Statement of Claim in particular. Mr. Sestritsyn is a former employee of Roshel who resigned after Roshel refused to accede to his baseless and extra-contractual demand of approximately $460,000,” Honickman said in a statement.

But in his lawsuit, Sestritsyn — who was directly involved in brokering the deal with the federal government — alleges that the company paid a former Ukrainian government official, Pavlo Barbul, cash to push the Ukrainian government and military to favour Roshel’s equipment. Roshel denies the claim. “Mr. Barbul’s role on behalf of Roshel was that of a ‘deus ex machina’ in lobbying Ukrainian officials at the direction of Roshel and/or Mr. Shimonov. Mr. Sestritsyn believes that Roshel and/or Mr. Shimonov paid cash to Mr. Barbul in order to influence decisions made by the Ukrainian government and/or military in favour of Roshel,” reads the lawsuit.

The company also said that Sestritsyn never expressed concerns about “anything unlawful or untowards about Roshel’s business dealings” while playing an “important role” coordinating the company’s contracts. It was only when Sestritsyn demanded to be paid a 0.5 per cent commission on the deal that he began expressing concerns about the company’s behaviour, Roshel alleges.

The company admitted in court documents that it “hoped” that Canada would aid Ukraine if Russia launched an invasion, but denied it had anything to do with financial motives. The company says the hope was born of Roshel and Shimonov’s commitment to the defence of Ukraine against Russian aggression. In its statement of defence, Roshel admits the vehicles increased in price but do not specify by how much. The company said the increase was due to higher price tags for a Ford 550 chassis , materials like glass and steel, shipping costs as well as employee overtime to get the vehicles built quickly.Article content

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