SBU uncovered embezzlement mechanism of regional and local budget allocated for construction infrastructure educational and sports facilities.

SBU operatives established that officials together with entrepreneur misappropriated over UAH 38,000,000 (circa USD 1,584,000) of state funds  allocated for development and reconstruction of two facilities of social sphere: health and fitness pool and boarding school.

The suspects artificially raised the prices for used construction materials via operations of the purchase of the materials by the under-controlled dummy companies. The businessmen prepared the documents, with included services, which in fact were not carried out for over UAH 10,000,000 (circa 416,000). In turn, the officials budget holders intentionally confirmed and fully paid off the sums required in the documents.

The suspects engaged proxy business entities to shadow the budget funds.

During the searches in state and commercial facilities law enforcement revealed the documents indicating financial and accounting reports of the dummy companies at one address. The operatives also seized acts of provided services, design and budget, financial and  payment documentation that proves the fraud.

The pre-trial investigation in the framework of the criminal proceeding initiated under Part 3 Article 191 and Part 3 Article 212 of the Criminal Code of Ukraine is under way.

Operation was conducted jointly with Main Office of the State Fiscal Service under the legal supervision of Prosecutor's Office in Poltava region.