An industrial complex in the Odesa region, purchased with public funds, turned out to be in ruins

In the Odesa region, an investigation is underway into possible official negligence by officials of the Serhiivka Village Council during the acquisition of the dilapidated “Yugstroy” industrial complex.

The Center for Public Investigations examined the details of the case.

According to a ruling by the Bilhorod-Dnistrovskyi City and District Court dated November 3, 2026, in August 2023, members of the settlement council approved the purchase of the property complex. They justified this decision by citing the community’s needs and the opportunity to increase revenue for the local budget.

The auction took place on September 29. The complex, with an area of 16,800 square meters, was put up for auction with a starting price of 4.5 million hryvnias. The town council won the auction with a bid of 3,105,000 hryvnias. As stipulated in the contract, this amount was transferred to the seller, and the community also paid a 225,000 hryvnia security deposit.

Problems with the acquisition were uncovered by a state financial audit in 2024. The complex was not being used for economic activity; it was neglected, some of the buildings had been dismantled, and the grounds were overgrown and littered with trash.

In March 2025, a commission of the village council determined that nine of the buildings specified in the contract were in fact missing, while another 17 were in a semi-ruined state. There were also no utilities or equipment on the premises.

According to the audit findings, the purchase of the complex resulted in the inefficient use of 3.2 million hryvnias in budget funds.

Criminal proceedings were initiated under the article on official negligence. As a result, the investigating judge granted law enforcement officials access to information regarding the telephone calls of the former acting head of the relevant agency for January 2023.

Анна Літман