ESBU prevents UAH 5 million embezzlement during gas pipeline construction in the Kyiv region

 Analysts of the Territorial Office of the Economic Security Bureau in the Kyiv region have identified significant violations during a tender for the procurement of industrial gas pipeline construction services. Thanks to a timely analysis, the misappropriation of nearly UAH 5 million in public funds was prevented.

During a monitoring of public procurement, ESBU analysts established that a state entity had named a private enterprise as the winner of the tender. Following the bidding process, a contract worth over UAH 4.9 million (including VAT) was signed.

An information and analytical review revealed that the contractor was listed in the Antimonopoly Committee of Ukraine's consolidated database for engaging in anti-competitive concerted practices.

According to current legislation, a customer is required to reject a participant's proposal if they have been held liable for such violations within the last three years. Ignoring this requirement violates the principles of transparency and competition and creates risks of inefficient use of budget funds.

The Territorial Office of the ESBU in the Kyiv region sent recommendations to both the customer and the State Audit Service. Bureau specialists suggested strengthening oversight of procurement processes and reconsidering the feasibility of cooperating with this enterprise.

Following an audit, the violations of the law were confirmed, and the customer was ordered to terminate the contract. The agreement was terminated prematurely, successfully forestalling the embezzlement of state funds.