NABU, SAPO uncover multimillion embezzlement in heating and water supply projects in frontline cities (PHOTOS)

NABU and SAPO have exposed an organized group led by the head of the Housing and Communal Services Department of the Donetsk Regional State Administration, which misappropriated more than UAH 140 million. These funds were intended to provide heating and water to three settlements in the Donetsk region.

According to the investigation, in the spring of 2023, the group members identified facilities that were to be restored with budget funds. They artificially inflated the cost of equipment and works, simulated competition in public procurement, and ensured the victory of a controlled company actually managed by the official’s former classmate. Despite the lack of proper project documentation, a contract worth over UAH 200 million was concluded with this company for the supply and installation of seven modular boiler houses in Selydove and Ukrainsk. Although the boiler houses were supplied, only two were connected — and even those did not operate because of malfunctions.

In Sviatohirsk, under the pretext of restoring water supply and sewage systems, the group continued with the plan. According to the contracts, money was transferred for works that were either not performed or executed in a “makeshift” manner — without permits, without project documentation, and with gross violations of norms. To conceal the crime, the group members falsified work completion certificates, unjustifiably extended contract deadlines, and pressured heads of municipal enterprises to accept the facilities onto the balance sheets.

As a result, the state suffered losses exceeding UAH 140 million, which the perpetrators misappropriated and used at their discretion, while residents of frontline cities were left without heating and drinking water during winter.

Currently, five participants in the scheme have been notified of suspicion under Part 3 Art. 27 and Part 5 Art. 191 of the Criminal Code of Ukraine. The organizers of the criminal group — the former department head and his classmate — have been detained under Art. 208 of the Criminal Procedure Code of Ukraine.