The SBU uncovered a large-scale misappropriation of budget funds, allocated for the construction of healthcare and educational facilities in Sumy region.

Allegedly, officials of the regional state administration and representatives of commercial entities, in particular from Kyiv and Poltava cities, organized embezzlement of state budget. They “prescribed” the necessary terms for affiliated companies to win in bidding for the construction of socially significant facilities.

Under the agreements, the contractors have to build and overhaul ten ambulatory clinics, as well as other social facilities.

The fraudsters did not carry out the relevant construction and repair works. Moreover, they have not put the facilities into operation, violating all the deadlines.

SBU operatives established that businessmen embezzled a part of the state funds, overestimating the cost of construction materials and equipment. They legalized the “profit” through controlled dummy companies and conversion centers.

According to experts, the state suffered UAH 19 million (USD 678,572) losses.

During searches of the suspects' offices and residence, law enforcement officers found black accounting records, seals, computers and mobile phones with evidence of illegal activities.

The criminal proceedings were initiated upon the fact of misappropriation, embezzlement or conversion of property by malversation. Urgent investigative actions are ongoing to bring to justice all persons involved in the fraud.

The operation was conducted jointly with the Main National Police Directorate in Sumy region under the legal supervision of Sumy Region Prosecutor's Office.