The SBU exposed the management of Zhytomyr energy supply company on multi-million misappropriation of budget funds during procurement.

Allegedly, the company’s officials signed a number of contracts for supply of construction materials to conduct remedial works and major repairs at facilities.

At the same time, the management exercised an exclusive right to carry out direct procurement without an open bidding. Thus, they concluded contracts with an affiliated local firm.

The offenders misappropriated millions of hryvnias due to artificially inflated prices for the procured goods.

The examination showed that during the purchase of sand and rubble only, the officials illegally embezzled almost UAH 1 m. (USD 35,714).

During the searches of the company’s premises of Zhytomyr City Council and of the supplier company’s office, law enforcement officers seized accounting documents and contracts proving the illegal activity.

The pre-trial investigation is ongoing for misappropriation, embezzlement or conversion of property by malversation.

Investigative actions are underway to establish the exact amount of damages and bring to justice all the persons involved in the illegal activity.

The operation was conducted by the SBU Office in Zhytomyr region jointly with the Investigation Department of the Main National Police Directorate under the supervision of Zhytomyr Region Prosecutor's Office.