Luhansk Regional State Administration officials appropriate UAH 10 million designated for the construction of social facilities
SBU exposed officials of Luhansk Regional State Administration and heads of the construction company on appropriation of millions of hryvnias allocated by the state for development of social infrastructure in the JFO area.
In the course of work on the construction of family day care homes and recreational areas managers of contracting company with the consent of State Administration officials illegally embezzled UAH 10 million of budget funds. Offenders several times overstated the cost of building materials, illegally obtained money they transferred to the accounts of several sham companies registered in Kharkiv. Money laundering was conducted by means of the conversion center. The received cash was appropriated by the offenders.
Operatives of the special service found that the part of the "shadow" money the businessman transported to the temporarily occupied Luhansk city. There he invested in activities of controlled construction company that regularly made contributions to the so-called "budget" of quasi-republic. Within the framework of criminal proceedings initiated under Part 3 Art. 110-2 and Art. 191 of the Criminal Code of Ukraine the law-enforcement officers conducted searches. In the offices of contracting company in Kyiv, two premises of conversion center and in residences of involved persons were seized accounting records and materials, confirming the transaction. Also evidence of economic activity on the temporarily occupied territory of Luhansk region and more than UAH 2.6 million in cash were detected.
The pre-trial investigation is ongoing. The information on involvement of offenders to other offences in the budget sphere is being checked. The measures to block illegal activities were conducted with the support of the SBU Main Directorate of economic counter-intelligence protection of the state's interests together with the officials of the Military Prosecutor's Office of Luhansk garrison.
For the Attention of the SBU Head