ESBU detectives uncover a UAH 9 million embezzlement scheme in boiler equipment procurement in the Kyiv region

 Detectives of the Territorial Office of the Economic Security Bureau of Ukraine in the Kyiv region, within the framework of a pre-trial investigation, have notified the head of one of the utility enterprises of the Myronivka City Council of suspicion for organizing the procurement of used boiler equipment at significantly inflated prices.

The investigation established that in September 2023, the utility enterprise entered into a contract with a private company for the purchase of a complex of equipment for heat energy production from alternative fuels. The total amount of the procurement was UAH 16 million.

Meanwhile, during the investigation, it was revealed that the actual market value of this equipment at the time the contract was signed was around UAH 6.8 million. Consequently, over UAH 9 million was groundlessly transferred from the local budget, causing damages to the territorial community on an especially large scale.

To implement the scheme, the head of the enterprise created the appearance of economic feasibility for the purchase and deliberately ignored the results of an independent valuation, which confirmed a significantly lower equipment cost. The official misled the city council deputies by providing false information regarding market prices and concealed information about the actual condition and age of the used boilers, manufactured in 2013-2014.

To create the appearance of the legality of the inflated price, fictitious contracts for conducting technical inspections and developing estimate documentation were used.

Currently, the director of the utility enterprise has been notified of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine. The pre-trial investigation is ongoing. Procedural guidance is carried out by the Kyiv Regional Prosecutor's Office.