The SSU has shut down a large-scale scheme of embezzling budget funds allocated for construction of new medical facilities in Odesa oblast.

The corrupt officials misappropriated almost UAH 7.5 mln (USD 201,000) of state funds and derailed the construction of 6 outpatient clinics in remote villages of the region.

The current chief of staff of the head of Odesa Oblast Military Administration is involved in organizing the criminal scheme.

He involved a Kyiv construction company, which is controlled by his friend, current advisor to the mayor of Vyshneve, Kyiv region.

According to the investigation, in 2020, with the ‘assistance’ of the Odesa official, this company won a tender for construction of medical facilities in the southern region.

According to the contract, the contractors were to build 6 new village outpatient clinics in Odesa region. The company received an advance payment of UAH 16.9 mln (USD 453,000) from the state budget for this project.

According to the investigation, the fraudsters embezzled almost half of this amount and left the construction of medical facilities unfinished, in some cases by as much as 50%.

To appropriate the funds, the organizers artificially inflated the cost and amount of work performed and entered false information in the reporting documentation.

To carry out financial ‘transactions’, the offenders involved another two officials of the of Odesa Oblast Military Administration.

The SSU-initiated construction and technical examination confirmed the facts of unfinished construction and stolen money. In addition, the experts noted that the foundations of the facilities do not meet the established requirements and can cause a collapse.

During the searches at the suspects’ homes, the law enforcement found documents and other material evidence of the crime.

The head’s chief of staff at Odesa Oblast Military Administration, two former heads of departments of this institution, an adviser to Vyshneve mayor, the director and another official of the construction company have been served notices of suspicion under four Articles of the CCU:

• 28.3 (committing a criminal offence by an organized group by prior conspiracy);
• 191.5 (misappropriation, embezzlement or seizure of property through abuse of office);
• 209.3 (legalization (laundering) of proceeds of crime);
• 366.1 (official forgery).

The suspects are facing up to 12 years in prison.

The SSU Office in Odesa region exposed the offenders jointly with the National Police under the procedural supervision of the regional Prosecutor’s Office.