UAH 20M misappropriated in IDP housing scheme: criminal group exposed

NABU and SAPO have exposed a criminal group that embezzled nearly UAH 20 million during the purchase of housing for internally displaced persons (IDPs) from the Luhansk region.

The suspects include:

• the former head of the Lysychansk City Military Administration (organizer);
• an entrepreneur (co-organizer);
• a lawyer.

According to the investigation, in 2022, the head of the Lysychansk Military Administration approved the "Temporary Housing" program intended to accommodate displaced people from the Luhansk region. UAH 35 million was allocated from the budget for this purpose.

To misappropriate public funds, the suspects acquired ownership of an LLC that owned a children’s camp in the Kirovohrad region.

The official then orchestrated the purchase of this property by the Lysychansk City Military Administration at a significantly inflated price. He specifically facilitated the decision to acquire the camp, falsely presenting it as the most suitable option for residential needs.

An expert assessment revealed that the difference between the actual value of the property and the amount paid was UAH 19.3 million.

The suspects have been detained and are awaiting preventive measures.

Their actions fall under Part 5 Article 191 of the Criminal Code of Ukraine.