Analysts of the Territorial Department ESBU in Zakarpattia region found that one of the departments of the Uzhhorod city council planned to spend local budget funds on refurbishing the stadium buildings for the needs of internally displaced persons.

In order to obtain engineering design services a contract was concluded with a limited liability company without conducting tender procedures and without carrying out a market analysis to determine the expected value of the purchase item. The cost of services was UAH 1.5 million.

Employees of the ESBU also established that one of the executive bodies of the Uzhgorod city council had already ordered design works for the same object and an identical type of construction in 2021 the cost of which was 30 times lower. Presumably funds in the amount of UAH 1.5 million were planned to be spent on a much larger amount of work than the building for the residence of internally displaced persons.

Thus the analysts found misuse of local budget funds and a significant overstatement of the cost of services.

The analysts sent a request to the Uzhhorod city council to obtain information about the purpose and scope of the ordered services, as well as to provide all the initial data transferred to the contractor for the contract.

Subsequently, the procuring entity and the contractor terminated the main contract due to the need to clarify the initial data. As a result, the procurement was canceled. The misuse of local budget funds in the amount of UAH 1.5 million is prejudicial.