Anti-corruption officials expose UAH 140 mln theft from frontline utility restoration funds in Donetsk region
The Specialized Anti-Corruption Prosecutor's Office (SAPO) and the National Anti-Corruption Bureau (NABU) have exposed an organized group that seized UAH 140 million in budget funds allocated for the restoration of heat and water supply in frontline cities in the Donetsk region, the SAP reports.
"Under the procedural guidance of the SAPO prosecutor, NABU detectives reported suspicion to five members of an organized group led by an employee of the Donetsk Regional State Administration, who, under martial law, seized budget funds allocated for the restoration of heat supply in the cities of Selydove and Ukrainsk, as well as water supply and sewage systems in the city of Svyatohirsk," the anti-corruption prosecutor's office said in a message on its Telegram channel on Wednesday.
The actions of the members of the organized group were qualified under Part 5 of Article 191 of the Criminal Code of Ukraine.
According to the SAPO, within the framework of the pre-trial investigation, it was established that in April-May 2023, the accomplices determined a list of objects for which the development of budget funds was planned, and formed artificially inflated calculations of the cost of work and equipment.
"Under the influence of the organizer of the crime, officials of the Donetsk Regional State Administration coordinated the application for the need for financing, after which an imitation of the competitive environment and price monitoring was organized," the report states.
The SAPO specifies that, in accordance with the previously determined actions, on June 27, 2023, an agreement was concluded between the Housing and Utilities Department of the Donetsk Regional State Administration and a private enterprise controlled by the accomplices for the amount of over UAH 200 million for the supply and connection of modular boiler houses, which did not immediately provide for proper design and estimate documentation.
"In September-December 2023, contracts worth almost UAH 100 million were concluded for water supply and drainage in the city of Sviatohirsk, under which payments were made for work that was either not performed at all, or was performed without design and permit documentation and with gross violations of building codes," the report says.
The actual performance of the work, as emphasized by the anti-corruption prosecutor's office, was of an imitation nature, and the constructed facilities could not be put into operation and used for their intended purpose.
In addition, according to the report, it turned out that the facilities in the city of Sviatohirsk are unauthorized construction and do not meet the requirements of urban planning legislation, and therefore cannot be put into operation.
"In order to conceal criminal activity, the group members initiated groundless extensions of contract terms, drew up fictitious acceptance and transfer acts and subsequently tried to transfer the constructed facilities to the balance of the municipal enterprise, reporting unreliable information about their readiness," the SAPO said.
In parallel, control over financial flows was carried out and the withdrawal of funds through controlled enterprises was organized with their subsequent processing.
Currently, the amount of losses caused to the regional budget is over UAH 140 million.
