SBU exposes high officials of Zaporizhia Regional and City Councils on budget embezzlement
The SBU officers under the procedural guidance of the Prosecutor’s Office exposed high officials of Zaporizhia Regional and City Councils on budget embezzlement.
In the framework of initiated criminal proceeding, the law enforcers established that the vice chairman of Regional Council jointly with the vice-mayor of Zaporizhia created a mechanism of budget embezzlement while the municipal enterprises of the region pursued public procurements. The SBU operatives established that a relative of the Regional Council official, who controls dozens of commercial structures in the region, was a member of illegal scheme.
The SBU operatives documented that the criminals artificially created instructions to tenderers to let the affiliated business-structures win. During 2017, the offenders influenced over the results of public procurements pursued by municipal enterprises of Zaporizhia amounting over UAH 130, 000 000. After that, the fraud organizers laundered money through the conversion center, transferred them to accounts of bogus firms, and embezzled the funds.
During authorized searches in back rooms and cars of the criminals, the law enforcers exposed laptops, on which the documentation of all enterprises controlled by the criminals was created. The SBU officers seized stamps of bogus firms, accounting and initial paperwork, notepads with scratch data about receipt of funds on accounts of the affiliated structures and converting them into cash.
The vice-mayor of Zaporizhia and his relative were detained on suspicion of committing a crime stipulated by Article 191 of the Criminal Code of Ukraine. In the framework of initiated criminal proceeding, the whereabouts of the vice-mayor of the city is being established and the issue about bringing the leaders of commercial structures involved into fraud to responsibility is being settled.
Urgent investigative actions are ongoing.
SBU Press Center
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