A large-scale scheme of embezzlement of budget funds has been uncovered in the Dnipropetrovsk region. The suspects profited from deals with budget contracts that the state conducted for the restoration and repair of critical and social infrastructure. To implement the scheme, the dealers used a network of more than two dozen controlled enterprises. Four members of the criminal group have been served suspicion notices. They face up to 12 years in prison, reports UNN with reference to the National Police.
Details
According to the investigation, a 38-year-old local resident controlled a network of enterprises in Dnipro that had the necessary construction and permitting licenses for the scheme. They participated in public procurement and entered into contracts with budget fund managers for the restoration of residential buildings, reconstruction of water supply networks, construction of shelters and other social infrastructure facilities. However, these business entities were not the main contractors. They were only used to process financial transactions and withdraw budget funds into cash through a "conversion center."
In total, over the three years of the full-scale war, the controlled enterprises entered into contracts with budget institutions for almost UAH 800 million.
To illegally take possession of part of the budget funds, group members entered false information into the acts of completed work. This allowed them to receive payment for work and materials that were not actually performed, the cost and quantity of which were unjustifiably inflated.
For example, during the reconstruction of water supply networks in Dnipro, the scheme participants embezzled almost UAH 1 million. They also appropriated almost UAH 2.8 million during emergency restoration work in an apartment building in Kharkiv damaged by a Russian shelling.
As a result of the examinations conducted, it was established that the state suffered damages of over UAH 3.8 million. For using the details of controlled enterprises and the subsequent withdrawal of funds, the scheme organizer received 15% of the amount of receipts.
On July 29, with the participation of operational units of the Main Department of the National Police in the Luhansk region, and with the force support of KORD and the Police Patrol Service in the Dnipropetrovsk region, police conducted about 100 searches at the residences of the suspects, in office premises and vehicles in the Dnipropetrovsk region. During the measures, funds in the amount of UAH 2.8 million in hryvnia equivalent, dozens of units of computer equipment, mobile phones, hard drives, seals, financial and economic documentation, vehicles, and rough notes were seized.
Based on the collected evidence, four members of the criminal group — the organizer of the scheme and three of his accomplices — have been served suspicion notices under Part 5 of Article 191 (Misappropriation, embezzlement of property or taking possession of it through abuse of office) of the Criminal Code of Ukraine. The issue of selecting preventive measures for the suspects is currently being decided.
Necessary actions are being taken to identify other persons who may be involved in the functioning of the criminal scheme. The sanction of the incriminated article provides for punishment in the form of up to twelve years of imprisonment with deprivation of the right to hold certain positions or engage in certain activities for a term of up to three years and with confiscation of property.