In Luhansk region, the Security Service of Ukraine exposed the management of a company on budget funds misappropriation totaling UAH 5 m (USD 180,000). The money was allocated for the construction of an orphanage and the reconstruction of the recreation park.

The SBU established that funds were allocated from the regional budget for the construction of a family-type orphanage in the city of Bilolutsk and the recreation park reconstruction in the city of Rubizhne. A construction company, registered in the city of Kyiv, won a contract for the relevant works.

Employees of the Security Service of Ukraine documented that the company's management systematically overestimated the cost of construction materials by 1.5-2 times. The organizers laundered money through a number of bogus firms.

An SBU-initiated inspection showed that the dealers misappropriated almost UAH 5 m during the first part of the planned works only. Thanks to the SBU quick actions, further funding of the works was blocked.

The law enforcement conducted a series of searches of the suspects’ residences and offices in the cities of Kyiv, Sievierodonetsk and Rubizhne. As a result, the SBU seized:

• more than UAH 2.2 m (USD 80,000) of illegally obtained money;
• financial documentation;
• electronic media proving the illegal activities.

As of now, four managers and officials of the construction company were served suspicion notices of misappropriation, embezzlement or conversion of property by malversation.

The investigation is ongoing to establish all the details of the case and possible involvement of other persons.

The operation was carried out by the SBU Main Directorate in Donetsk and Luhansk regions jointly with the Main Directorate of Counterintelligence Protection of the State's Economic Interests, under the supervision of Luhansk Regional Prosecutor's Office.