In Kyiv, the SBU exposed an illegal activity of ME Zhytloinvestbud–UKB leadership. Allegedly, the officials misappropriated funds allocated for preschools and schools reconstruction in Kyiv. The total amount of money laundered from the city budget is UAH 30 m. (USD 1.1 m.).

The offenders used controlled contractors for performing reconstruction and repair works.

The contractors failed to perform work in accordance with the contracts. Part of works was performed at inflated prices; another part was never done. The documents showed that the works had been completed when they had not.

Reportedly, during 2019 year municipal enterprises carried out tenders totaling more than UAH 120 m. (USD 4.5 m.), USD 1.1 m. of which was laundered by participants of the illegal scheme.

The law enforcement officers conducted eleven searches of offices and residences of contractors’ employees and ME Zhytloinvestbud-UKB officials. Apart from that, they conducted a search of a workplace of a deputy head of Kyiv City Council, supervising the aforesaid municipal enterprise.

During the searches, they seized documents and seals proving their involvement into illegal activity.

Within the criminal proceedings of misappropriation, embezzlement or conversion of property by malversation, the amount of damages is being estimated.

The operation was carried out by the SBU Main Directorate in Kyiv and Kyiv region under the supervision of Kyiv City Prosecutor`s Office.

Note:

The annual budget expenditures for ME Investbud-UKB amount to over UAH 1.2 b. (USD 44.5 m).

To remind:

According to the Article 62 of the Constitution of Ukraine, a person is presumed innocent of committing a crime and shall not be subjected to criminal punishment until his or her guilt is proved through legal procedure and established by a court verdict of guilty.