In the first half of 2023, analysts of the Economic Security Bureau of Ukraine prevented the embezzlement of UAH 691.7 million of state budget funds during tender procurement.

Since the beginning of 2023, the ESBU analysts have analysed more than 30,000 tenders involving public funds managers. One of the most common violations is when procurement initiators hold tenders at inflated prices. For instance, in Dnipro, they tried to buy diesel generators for 30% higher price than the market value. In Kyiv, food products and cables for an energy company were twice as expensive, and in Rivne, medical equipment was overpriced.

Another common scheme involves the misappropriation of budget funds.

For example, officials of one of the state enterprises in the field of road management transferred UAH 1 billion of budget funds in favour of a commercial enterprise.

Allegedly, as guarantees and payments under factoring contracts. Officials of another state institution planned to spend UAH 40 million on the improvement and landscaping of the city's territory. In addition, some companies that won tenders did not declare the budget funds they received.

The analysts also identified business entities that win tenders for services but have neither employees nor the necessary material and technical base to fulfil the order.

The most violations in public procurement were found by the ESBU analysts in Kyiv city, Kyiv, Dnipro and Kharkiv regions.

The ESBU analysts sent advisory letters to government agencies, local self-government bodies, and budget managers/recipients regarding the identified procurement risks. As a result, several tenders were cancelled, and contracts for the supply of goods or services were terminated or renegotiated with new terms. This helped save UAH 691.7 million of public funds.

In addition, 91 analytical products were handed over to the ESBU detective units for processing.

As a reminder, the ESBU recently prevented an illegal procurement worth UAH 40 million in Zakarpattia region.