Contractors are tried in Mykolaiv on suspicion of embezzlement

In Mykolaiv, a trial is underway over alleged embezzlement of budget funds during the repair of a tram line. The defendants are the company's management and employees, who are accused of falsifying documents, overstating the scope of work, and poor quality of the repairs.

This was reported by Anti-Corruption Dimension with reference to the court ruling.

The Central District Court of Mykolaiv has been considering a criminal case for more than a year now on the possible misappropriation of more than UAH 4.5 million of budget funds allocated for the improvement of the tramway on Potemkinska Street. The defendants are the owner of the construction company DI KOR-BUD LLC, as well as the company's director and engineer. All three are accused of participating in the seizure of the city's property.

The contract for these works was signed by the Mykolaivelectrotrans utility company in September 2022 - the company was entrusted with the improvement of the tramway section from Sadova to 3 Slobidska Street for more than UAH 16.7 million. The procurement was conducted without an auction. The investigation believes that the contractor overestimated the scope of work and prices, used low-quality tiles, and provided a fake conclusion on its compliance with standards.

The defense once again requested that the measure of restraint for the company owner be changed from a multimillion-dollar bail to a personal commitment. They argued that this was due to the client's exemplary behavior, the help of the army, and the difficult financial situation of the guarantors.

But the court again refused, citing the severity of the charges and the risks of influencing the trial. In 2023, the court set bail at more than 1.9 million, and these funds are currently kept in the court's deposit account. The other two defendants are being held in custody as a preventive measure.

The defendants in the case are the company's founder Dmytro Koroviy, director Anastasia Ganina and employee Yulia Panasyuk. DI KOR-BUD LLC is a Mykolaiv-based construction company established in 2006. In 2024, the company earned more than UAH 19 million from government contracts, although it officially employs only eight people.

The renovation of a school in the village of Stepkivka is also at the center of criminal proceedings on suspicion of embezzlement of budget funds. Investigators have already gained access to documents that may indicate abuse of office during the work.

Анна Літман