Scheme to embezzle funds for water pipeline in Donetsk region exposed (PHOTO)

NABU and SAPO have exposed an organized group involved in the misappropriation of over UAH 80 million allocated to develop documentation for an infrastructure project in the Donetsk region.

As established, in 2021, the Department of Housing and Utilities of the Donetsk Regional State Administration received over UAH 80 million. The funds were intended for the development of design and cost documentation for the construction of technical water supply facilities from the Siverskyi Donets–Donbas Canal to the connection point with the South Donbas Water Pipeline.

In November 2021, the director of the Department of Housing and Utilities, acting in concert with others, signed a contract for the development of the documentation with a company controlled by the group and specifically acquired to implement the criminal scheme.

However, the contract was concluded without any intention of real execution, and the design documentation was developed only partially. Instead, between September and December 2021, more than UAH 80 million in budget funds were transferred to the contractor’s accounts and misappropriated by the scheme’s participants.

Notices of suspicion were served on the following persons (positions indicated as of the time the offense was committed):

• the director of the Housing and Utilities Department of the Donetsk Regional State Administration;
• the deputy head of the same department;
• the beneficial owner of several commercial companies.

Legal qualification: Part 5 Article 191 of the Criminal Code of Ukraine.