Eight people to stand trial over embezzlement of funds during housing restoration and shelter repairs in Kryvyi Rih. PHOTOS
Eight members of a criminal organisation will be tried for embezzlement during the restoration of housing and repair of shelters in Kryvyi Rih. Among the defendants are owners and managers of private companies, as well as a city council deputy.
The latter lobbied for the interests of controlled companies to conclude contracts for construction and repair work, according to Censor.NET.
Details of the investigation
Overall, in 2023–2024, the schemers concluded 189 agreements among themselves worth more than 57 million hryvnias. Currently, the police have proven the involvement of the group's members in three episodes of illegal activity, which resulted in 2.5 million hryvnias in losses to the state budget.
For what they did, the schemers could face up to 12 years in prison with confiscation of property.
Reference
In February last year, operatives of the Strategic Investigations Department in the Dnipropetrovsk region and investigators of the regional police’s Investigation Department exposed a scheme to illegally misappropriate budget funds during restoration works.
The "scheme" was organised by the owner of a group of private companies, who later became a member of the city council. To carry out the criminal plan, he enlisted the support of his wife, a co-owner of the companies under their control.
The couple's companies provide services for the management of apartment buildings in Kryvyi Rih and receive funding from the city budget within the framework of programmes for the development and maintenance of housing and communal services. After being elected to the local self-government body, the deputy used his status to advance the interests of his own business during tender procedures.
During 2023–2024, 189 contracts were signed with the "friendly" companies involved: 131 for restoring housing stock damaged by Russian shelling and 58 contracts for repairing shelters.
The leader of the criminal organization clearly assigned roles among its members, from handling tender procedures and preparing documentation to accounting support, concluding subcontract agreements, financial reporting and subsequent distribution of the funds obtained.
During the investigation, it was established that while carrying out restoration works, the perpetrators entered false information into official documents regarding the cost of materials and the actual scope of work.
By the measures taken, police have ensured reimbursement of the damages to the state budget.
Pre-trial investigation in the criminal case completed
In coordination with the Dnipropetrovsk Regional Prosecutor’s Office, an indictment against eight members of the criminal organization led by a local council member has been sent to court.
The defendants’ actions have been classified under several articles of the Criminal Code of Ukraine:
- creation, leadership of a criminal organisation, as well as participation in it;
- misappropriation, embezzlement of property or taking possession of it through abuse of office committed as part of an organized group;
- official forgery committed as part of an organised group.
