In Kryvyi Rih, a deputy and accomplices embezzled 2.5 million UAH from the budget intended for housing and shelter repairs (PHOTOS, VIDEO).

During the renovation of schools and houses damaged by shelling, 8 members of a criminal organization led by a deputy of the Kryvyi Rih City Council embezzled 2.5 million UAH. This was reported by "Vidomo" citing the press service of the National Police.

According to the investigation, the scheme for misappropriating budget funds was organized by the owner of a group of companies, who later became a city council deputy, and his spouse. These companies provide management services for apartment buildings in Kryvyi Rih and receive funds from the budget as part of the city's housing and communal services development program.

They involved a lawyer, a company director, and entrepreneurs to implement the scheme for illegally seizing budget funds allocated for the repair of educational institutions and residential buildings damaged as a result of shelling by the Russian Federation.

Roles were assigned among all group members: overseeing all actions and processes, preparing documentation for tender procedures, communicating with officials from relevant local government departments, signing subcontract agreements, maintaining accounting and financial reporting, distributing funds, etc.

In the period from 2023 to 2024, contracts were signed for the repair of institutions, while the suspects submitted false information about the volumes of work performed and inflated prices for materials. During this period, 189 contracts were concluded for a total amount exceeding 57 million UAH.

To verify the budget fund fraud, the perpetrators included fictitious data on costs and volumes of materials used and construction work performed in official documents. Currently, it has been established that in the aftermath of shelling by Russia, the perpetrators stole 2.5 million UAH from the budget for the liquidation of consequences at 22 sites, as well as the repair of two shelters.

On February 7, operatives of the Special Services Department, investigators from the regional police, with the support of special police units and KORD, under the procedural guidance of the Dnipropetrovsk Regional Prosecutor's Office, conducted over 70 searches across the region – in the offices of budget fund administrators, in the offices of commercial entities, and at the residences of the suspects. They seized cash in various currencies, 15 vehicles, mobile phones, information on flash drives related to financial and economic activities, and rough notes.

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The total value of the seized property, according to preliminary estimates, exceeds 19 million UAH. The issue of imposing an arrest is being resolved.

In accordance with Article 208 of the Criminal Procedure Code, law enforcement detained the city council deputy and seven members of the criminal organization. Based on the collected evidence, investigators informed all suspects of charges under part 1 and 2 of Article 255 (creation, leadership of a criminal organization, as well as participation in it), part 4 of Article 28, part 5 of Article 191 (embezzlement, misappropriation of property or acquisition of it through abuse of official position, committed by an organized group), part 3 of Article 27, part 4 of Article 28, part 1 of Article 366 (official forgery committed by an organized group) of the Criminal Code of Ukraine.

Currently, the court has chosen preventive measures for the suspects – detention. They may face up to 12 years of imprisonment with confiscation of property for their actions.

The pre-trial investigation is ongoing. Efforts continue to establish the full circle of individuals involved in the embezzlement of budget funds.