A children's institution became a source of illegal enrichment: damages exceeded UAH 12 million

 In Odesa, a scheme to embezzle city budget funds during the repair of a children's and youth creativity institution has been exposed. Currently, city council officials and the contractor have been notified of suspicion.

Detectives of the Territorial Office of the ESBU in the Odesa region established that officials of the Capital Construction Department of the Odesa City Council, together with the director of a construction enterprise, developed a scheme to embezzle budget funds.

Specifically, in 2019, the Capital Construction Department of the Odesa City Council concluded a contract with a contractor for the repair and reinforcement of the foundations of the children's creativity center building. However, during the execution of the work, a need for additional funding arose. In 2020, a new tender worth over UAH 46 million was announced, and the same enterprise became the winner again. The previous contract was formally closed, and a new one was concluded with the company.

Subsequently, the contractor, along with certain officials, entered false data into the certificates of completed work: a portion of the work was not performed at all, some materials were purchased cheaper than stated in the documents, the cost of certain works and materials was overstated, and a list of completed works and equipment that did not actually exist was entered into the reporting.

In particular, the documents could specify doors, stairs, metal structures, or finishing works that were not installed at all or cost significantly less.

The official of the Capital Construction Department was required to verify the actual execution of construction works, their compliance with the project documentation, as well as the accuracy of the specified volumes and costs.

However, the suspect signed the certificates of completed work containing false information. This allowed the unjustified transfer of budget funds to the contracting organization for works that were actually not performed or were overstated in cost. As a result of these actions, damages amounting to over UAH 12.1 million were caused to the territorial community of Odesa.

Currently, the official of the Capital Construction Department of the OCC (Odesa City Council) has been notified of suspicion under Part 2 of Article 364 of the Criminal Code of Ukraine — abuse of official position. The former and current directors of the company are accused of committing criminal offenses provided for under Part 5 of Article 191 and Part 1 of Article 366 of the Criminal Code of Ukraine, namely the misappropriation of budget funds on an especially large scale through abuse of official position, as well as the compilation and issuance of knowingly false official documents. Both suspects have been put on the wanted list.

The pretrial investigation is ongoing. The full circle of individuals involved in the commission of the criminal offense is being established.

Procedural guidance in the case is provided by prosecutors of the Odesa Oblast Prosecutor's Office.

According to Article 62 of the Constitution of Ukraine, a person is presumed innocent of committing a crime until their guilt is proven in accordance with the law and established by a court verdict of guilty.