The Security Service, the National Police and the Office of the Prosecutor General have dismantled a large-scale scheme involving the misappropriation of funds at the state-owned enterprise Kyiv Regional Road Administration. Following a series of comprehensive operations, three senior managers were arrested for demanding bribes in exchange for leasing state-owned property.

The investigation revealed that the administrator overseeing the reorganisation of a subsidiary company organised the scheme. This company is currently undergoing reorganisation as part of bankruptcy proceedings. He enlisted the help of his deputy and the enterprise’s commercial director in these illegal activities.

Rather than working on the company’s financial recovery, the management introduced a system of systematic bribery from entrepreneurs renting office and industrial premises from the state-owned company.

To operate the scheme, the officials leased out the relevant properties without proper documentation and at artificially low rates.

It has been established that payment for the use of state assets took place via ‘hand-to-hand’ bribes from tenants to the company’s management.

According to the investigation, the officials received over UAH 100,000 (USD 2,200) in cash every month from just four clients in this way.

The law enforcement team documented the offences committed by the managers of the state-owned enterprise and caught them ‘red-handed’ while they were receiving another unlawful benefit.

During the arrest, one of the suspects attempted to dispose of material evidence by throwing part of the bribe out of the office window.

The detainees have now been served with notices of suspicion under Articles 368.3 and 368.4 of the CCU (acceptance of an offer, promise or receipt of an unlawful benefit by a public official, committed by an organised group).

The suspects face up to 10 years’ imprisonment and the confiscation of their property.

Additionally, charges have been brought against four tenants who paid bribes. They have been notified of their status as suspects under Article 369.3 of the CCU. The penalty under this Article is up to eight years’ imprisonment and confiscation of property.