SBU exposes Cherkasy City Council officials on million schemes with state funds during street repairs
SBU exposed officials of Cherkasy City Council on large-scale abuse while repairing of regional center streets, resulting in over UAH 1,5 million of state and city budget losses.
Operatives of the special service found that the head and deputy head of financial unit of one of the departments of the City Council signed an agreement with the construction company to repair 17 streets of Cherkasy city with a total cost of almost UAH 19 million.
After most of the works UAH 12,5 million were transferred to dealers. However, during the check the law-enforcement officers found that the funds were transferred to four controlled by the dealers commercial entities. Then the funds were converted into cash and in such a way dealers avoided paying taxes.
According to experts, as a result of this fraud, the state budget suffered UAH 1,5 million (USD 63,000) losses.
During searches in offices of officials the primary accounting, financial and payment documentation, proving the transaction were seized.
Two officials were served notices of suspicion of committing a crime provided for in Part 2 Art. 367 of the Criminal Code of Ukraine.
The measures to expose the offenders were conducted jointly with the National Police investigators under the procedural supervision of the Prosecutor's Office.
SBU Press Centre
For the Attention of the SBU Head