SBU unmasks embezzlement of millions during reconstruction of channel in Odesa region
The Security Service of Ukraine (SBU), as a part of counterintelligence protection of critical infrastructure and combating systemic corruption, has unmasked large-scale embezzlement of the state funds during a reconstruction of the channel that connects Tylihul Estuary and Black Sea in Odesa region.
The investigators established that the officials of Tylihulsky Regional Landscape Park following a tender signed a contract for repair works with a local contractor company, whose director general is the deputy of regional council, an SBU press center said on Friday.
In turn the contractor has entrusted part of the works of one of the regional businesses of the region that is not associated with construction or reconstruction of hydraulic engineering facilities and had no necessary machinery and equipment, the SBU said.
This firm has listed uAH 20 million of the UAH 60 million allocated for reconstruction.
"In order to launder money defendants in the proceedings indicated deliberately false information on the volumes of the carried works and on the price of the used building materials in the official documents. Afterwards budget money were cashed and appropriated," the press service said.
"As a result of the fraudulent activities, the reconstruction jobs were carried out poorly, leading to a rapid destruction of hydraulic structures and made its further operation impossible. Therefore, it was planned to allocate more than UAH 35 million of state funds to the same contractor to restore the destroyed facilities," the press service said.
The deputy of regional council was presented suspicion of committing crimes under Part 5 of Article 191 and Part 2 of Article 366 of the Criminal Code of Ukraine, technical inspector of the construction, who recognized feasibility of the waterworks, was presented suspicion under Part 2 of Article 366, according to the press service.
The suspects were chosen a measure of restraint in form of detention and round-the-clock home arrest, respectively.
The investigation over the criminal case continues.
