Kharkiv City Council Department management misappropriates millions of UAH during roads repair
SBU exposed Kharkiv City Council Department management on systematic acts of misappropriation of the budgetary funds allocated for roads repair.
SBU operatives established that during 2016-2018 department managers illegally sold asphalt granulate, which remained after roads repair. The officials off-loaded tonnes of the material to the controlled company at 5 times lower prices than market value. Then merchants resold the goods for real price. The organizers of the fraud appropriated obtained money.
Moreover, the officials even did not have a legal right to deal with the construction materials, since it belonged to a municipal company, which is in charge of all the auto-roads in Kharkiv region.
Constructing-Technical and Economic Commission estimates the inflicted losses to the city budget at almost UAH 5,300,000 (USD 220,000).
Law-enforcement officers conducted searches at offices and residencies of the suspects, where they seized documents proving the fraud realization.
Two officials, including the deputy chief of the department, are served a notice of suspicion in committing misappropriation and embezzlement of property in a gross amount. The issue of serving a notice to other suspects is being decided.
The investigative and operative actions on bringing all offenders to the criminal responsibility are under way.
The operation was conducted jointly with the National Police investigators under the supervision of the Prosecutor's Office of Kharkiv region.
SBU Press Centre
For the Attention of the SBU Head