Kyiv City State Administration officials are suspected of losing more than UAH 150 million on bridge construction
22 April 16:22
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The Security Service of Ukraine, together with the Bureau of Economic Security, uncovered facts of misappropriation of budget funds during the implementation of one of the capital’s largest infrastructure projects, the construction of the Podilskyi bridge crossing over the Dnipro River. The investigation found that the organizers of the scheme, using their official position, misappropriated at least UAH 153 million allocated for the purchase of materials for the work, "Komersant Ukrainian" reports, citing the SBU.
According to the investigation, the illegal activity was carried out in 2018-2019, before the outbreak of a full-scale war. Officials of one of the capital’s municipal enterprises, which is part of the Kyiv City State Administration, were involved in organizing the fraud. Among the defendants are both former and current managers of this enterprise, as well as the former director of the contractor company.
The scheme was based on artificially inflating prices for construction materials. The case file indicates that under the contracts, the officials actually overpaid almost 6 times for the technological mesh used to strengthen the bridge piers. The contracting organization, selected without open competitive procedures, purchased 8,800 units of mesh from a supplier related to the defendants, registered in one of the Middle East countries.
Price difference: market value – $110, purchase price – $610
According to law enforcement officers, at the time of the purchase, the average market value of a unit of mesh was USD 110. However, the contracts specified the amount of $610, which allowed for a significant “difference” between the real and official cost. These funds, according to preliminary data, were distributed among the organizers of the scheme.
Operatives and investigators conducted searches at the offices of the utility company and the contractor, as well as at the suspects’ residences. During the investigation, the SBU seized computer equipment, mobile phones, accounting documents and other materials confirming the illegal actions. All this is included in the criminal proceedings.
Suspicions were served, preparations for trial started
The former and current heads of the KCSA municipal enterprise, as well as the former director of the contractor company, were served with a notice of suspicion of committing a criminal offense under Part 2 of Article 27 and Part 5 of Article 191 of the Criminal Code of Ukraine. The sanction of this article provides for up to 12 years of imprisonment with confiscation of property.
The investigation is ongoing to identify other persons who may have been involved in organizing or facilitating the criminal scheme. Law enforcement officers do not rule out that other local government officials and representatives of private businesses involved in the implementation of infrastructure projects in the capital may be involved in the fraud.
As the SBU emphasizes, identifying violations in the implementation of large-scale infrastructure projects is one of the priorities of the service under martial law. Ensuring efficient and transparent use of budget funds is a key factor in restoring trust in the state and strengthening economic stability.
“The construction of strategic facilities is not only an engineering task but also an indicator of responsibility to citizens. Every hryvnia invested in infrastructure development should work for the community, not enrich individuals,” the SBU press service said.
Authorities’ response
The Kyiv City State Administration is currently refraining from making official comments. At the same time, the relevant departments confirmed that an internal audit would be conducted to assess the level of control over project implementation and procurement procedures.
The Office of the Prosecutor General, which is coordinating the investigation, emphasizes the importance of prompt response to such offenses, especially in times of war, when every resource is critical to the functioning of the state.
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