The Security Service of Ukraine and the Economic Security Bureau of Ukraine have documented new facts of embezzlement from Kyiv city budget. The organizers of this scheme misappropriated at least UAH 153 million (USD 3.6 mln), which were intended for the construction of the Podilskyi Bridge over the Dnipro River.

The investigation revealed that the current and former heads of a municipal enterprise, which is part of Kyiv City State Administration, were involved in organizing the embezzlement.

In the period before the full-scale war, they artificially inflated the cost of building materials during the construction of the bridge and divided the resulting ‘difference’ among the participants in the fraud.

For this purpose, during 2018-2019, the individuals involved ‘overpaid’ almost 6 times for wholesale batches of mesh to strengthen the bridge pylons.

To operate the scheme, the organizers entered into an agreement with an affiliated construction company in Kyiv. The contractors then purchased 8,800 technological meshes from a controlled company in the Middle East.

For comparison, the average cost of the mesh on the market was USD 110, while the fraudsters purchased it for USD 610 per unit.

During the investigative actions, the law enforcement found and seized computer equipment, mobile phones and documents with evidence of the crime.

The former and current heads of the KCSA municipal enterprise and their accomplice, former director of the contractor, have been notified of suspicion under Articles 27.2, 191.5 of the CCU (complicity in misappropriation of property or seizure of property by abuse of office, committed on a large scale by an organized group).

The investigation is ongoing to bring to justice all those involved in the embezzlement of the budget funds. The suspects face up to 12 years in prison with confiscation of property.

The investigation is carried out under the procedural supervision of the Prosecutor General’s Office.