A company suspected of embezzlement received a budget contract in Kherson region

Despite the availability of a cheaper offer, the tender for the reconstruction of the main water supply system in Kherson region was won by the company that offered the highest price. In addition, the same company had previously been involved in criminal proceedings and journalistic investigations related to the possible misappropriation of budget funds.

This is evidenced by data from the Prozorro procurement system.

The Velyko Oleksandrivska community in Kherson region announced a tender for the reconstruction of a water supply system worth more than UAH 21 million, funded by the local budget and UNICEF. However, even at the preparation stage, participants and experts drew attention to questionable and likely discriminatory requirements in the tender documentation.

Despite comments that these requirements limit competition and exclude qualified bidders, the auction took place. Three companies took part in the auction: Standard Stroy Mir LLC, Ecosnabud LLC, and Ukrspetsoborudovanie LLC. The winner was the latter company, which offered the highest price.

Interestingly, the offer of Ukrspetsoborudovaniye differed from the initial expected cost by only UAH 382, although the minimum price reduction step was more than UAH 215 thousand. This raises suspicions about the transparency and fairness of the bidding, as such a minimal difference may indicate a pre-agreed price between the contracting authority and the winner.

SCREENSHOT: Prozorro

Ukrspetsoborudovaniye, the company that won the tender for the reconstruction of the water supply system in Kherson region, has a dubious reputation and is involved in several criminal proceedings.

According to YouControl, this Mykolaiv-based company was founded in 2000 and has already earned more than UAH 389 million in public procurement. It was particularly active in 2023, receiving contracts worth more than UAH 143 million. Among its main customers were utilities in Mykolaiv, Odesa and Kherson regions.

Journalistic investigations and seven criminal proceedings in the register are related to Ukrspetsoborudovaniye's activities. In particular, Kherson police investigated the possible embezzlement of budget funds during the construction of water supply and sewerage networks in the Tavriyskyi neighborhood.

SCREENSHOT: Prozorro

According to the investigation, more than UAH 100,000 could have been misappropriated by the director of Ukrspetsoborudovaniye LLC and an engineer of the Capital Construction Department of Mykolaiv City Council. The SBU found that the certificates of completion indicated services that were not actually provided.

Nevertheless, in June 2025, the municipal utility Mykolaivvodokanal again entered into an agreement with the same company. It received a contract for the reconstruction of a 500-millimeter water supply system in the city's central district. This fact is worrisome, as even after previous suspicions of overcharging, Ukrspetsoborudovaniye continues to receive large government contracts.

Катерина Глушко