The Specialized Prosecutor’s Office in the Defense Sphere of the Eastern Region has sent to court a case against a criminal organization led by the former deputy mayor of Kharkiv regarding the misappropriation of budget funds during the construction of fortifications in Kharkiv region, the Office of the Prosecutor General reports.
"We are talking about funds from the reserve fund of the State Budget aimed at the construction of fortifications and non-explosive barrier systems in Kharkiv region," the agency notes on its Telegram channel on Friday.
According to the investigation, in March 2024, the former deputy mayor of Kharkiv created and led a criminal organization, which included directors of enterprises, two individual entrepreneurs, and an accountant who provided financial support for the activities.
"During March-September 2024, the Department of Housing and Communal Services and Fuel and Energy Complex of the Kharkiv Regional Military Administration concluded 20 contracts for the construction of fortifications with entities controlled by them," the statement says.
According to the investigation, the scheme consisted in overstating the cost of building materials: products were purchased at market prices, after which their cost was artificially increased in the documentation through controlled structures.
It was these amounts that became the basis for transferring budget funds.
According to the prosecutor’s office, the organizer coordinated the actions of the participants, controlled the interaction and distribution of illegally obtained funds. The directors of companies ensured the conclusion of contracts and execution of documents, the individual entrepreneurs ensured the execution of business operations, and the accountant ensured the movement of funds and banking support.
After seizing the funds, the participants, according to the investigation, legalized them through financial operations.
During the investigation, property, accounts, corporate rights, and vehicles of the individuals and structures controlled by them worth almost UAH 4 million were seized.
In addition, UAH 20.6 million has already been reimbursed and transferred to the budget of the Kharkiv city community.
