The SBU exposed a large-scale misappropriation of budget funds during the capital repair of hospitals and schools in the Kreminna district of Luhansk region.

Allegedly, the SBU established that in 2018 an influential businessman from Kreminna city organized the scheme. He involved in the illegal activities a current official of the District State Administration and representatives of several commercial entities specializing in design, repair and construction materials trade.

Using his position, the official ensured his accomplices victory in tenders for construction work at social facilities of the district. Then the enterprise, controlled by the offenders, deliberately overrated the value of goods and services by 1,5-2 times. The scheme participants purchased building materials at inflated prices from contolled companies, and then they converted the difference into cash and misappropriated it.

The SBU officers established that the offenders carried out repairs at 17 social facilities for a total amount of more than UAH 50 m. (USD 1,7 m.). Law enforcement officers documented that they appropriated almost UAH 700,000 (USD 25,000) for the roof repairs of five schools. The exact amount of damage to the budget is being established.

The criminal proceedings were initiated for misappropriation, embezzlement or conversion or property by malversation; legalization (laundering) of criminally obtained money and other property; criminal offense committed by a group of persons, or a group of persons upon prior conspiracy, or an organized group, or a criminal organization; forgery in office.

In Kyiv and Kreminna cities, law enforcement officers conducted 9 searches at the suspects' residences, offices and in their vehicles. The SBU officers seized draft records, UAH 800,000 (USD 28,570) and other material evidence attached to the criminal case file.

The mastermind and 4 suspects received notices of suspicion. The issue of choosing them types of detention is being settled.

The pre-trial investigation is being carried out by the SBU under the procedural supervision of the Luhansk Region Prosecutor's Office.