SBU exposes fraudulent scheme in Kyiv City State Administration: Offenders appropriated UAH 4 million in 10 years

SBU officers detected and terminated multimillion fraudulent scheme, organized by the Kyiv City State Administration officials.

Operatives of the special service found that in 2008 communal enterprise the “Kyiv Institute of Land Relations” established automated system of “Cadastr” software package on demand of the Kyiv City State Administration. At the same time, former deputy director of the Department of Land Resources of the Kyiv City State Administration and ex-head of the applied software unit of the enterprise-developer illegally registered on himself exclusive right to the software product.

Due to fraudulent scheme officials illegally received royalty fee in the amount of 5% of the profit, which would be arrived in the accounts of the communal enterprise, which actually developed a software package.  Thus, in 10 years offenders inflicted UAH 4,3 million losses to local community.

In addition, it was established that all this time the service expenses came from the budget of the capital.

Within the framework of criminal proceedings both offenders were served notices of suspicion under Part 4 Art. 190 and Part 3 Art. 176 of the Criminal Code of Ukraine.

Measures to expose the illegal activities of offenders were conducted with the National Police investigators under the procedural guidance of the Prosecutor's Office.