Poltava region: Officials inflict over UAH 30 million state losses during construction and repair works execution

SBU detected the unlawful mechanism of appropriation of funds by officials of the regional and local budgets during the execution of repair and construction works in the social sphere of Poltava region facilities.

Special service operatives found that the owners of commercial structures, in collusion with officials, secured "development" of over 150 million hryvnias of budget funds allocated for repairs and reconstruction of state institutions. Works in the facilities, including hospitals and schools, were executed on the order of budget funds holders of Poltava Regional State Administration and Poltava City Council Executive Committee.

The involved persons artificially overestimated the cost of the work performed and the number of construction materials used, fictitiously buying them from controlled firms. To move the budget money into the "shadow" the attackers have registered a number of controlled commercial structures.

According to preliminary data, involved persons moved out in the shadow circulation converted over UAH 22 million of budget funds into cash.

During the pre-trial investigation, it was documented that the financial and accounting records of the companies that had been tendered together, as well as of the laying firms, were carried out at the same legal address. In particular, the purchase of goods from controlled commercial entities at a cost that is on average 30-40% higher than the market, resulted in budget losses of nearly UAH 10 million.

During the searches, law-enforcement officers seized financial and payment records, draft accounting, seals of commercial structures involved in illegal equipment.

The criminal proceeding was initiated under Part 5 Art. 191 of the Criminal Code of Ukraine is under way.

The investigation is ongoing to bring to justice all persons involved into the illegal activity.

The operation was conducted under the procedural supervision of the Prosecutor's Office of Poltava region.