In Mykolaiv Oblast, officials and a contractor are suspected of embezzling funds intended for a shelter project worth 46 million

The construction of a school shelter, which was supposed to ensure the children’s safety, has become the focus of a criminal investigation. Investigators are looking into whether the multimillion-hryvnia project has turned into a scheme to embezzle public funds. 

This is evidenced by a ruling from the Vitovsky District Court.

According to the investigation, officials from the Department of Education, Culture, Youth, and Sports of the Stepivska Village Council may have conspired with representatives of the contracting company to embezzle public funds during the construction work.

Law enforcement officials have determined that in August 2025, the Department of Education entered into a contract with Nikopolskaya-STK LLC for the construction of a shelter for the Mykhailivsky Lyceum.

This tender, with an estimated cost of 46.67 million hryvnias, is funded by the state and local budgets as part of the Ukraine Facility program.

<picture></picture>SCREENSHOT: Prozorro

The procurement was announced by the Department of Education, Culture, Youth, and Sports of the Stepivska Village Council in late April 2025. Three companies participated in the bidding process. The lowest bid—42.3 million hryvnias—was submitted by “Fundament” Production Company LLC, but it was rejected. The contracting authority also rejected the bid from “Yulkom-Service” Private Enterprise.

Ultimately, “Nikopolskaya-STK” LLC was declared the winner, having offered to perform the work for 46.63 million hryvnias—nearly the expected procurement cost. A contract was signed with this company to build a protective structure for the lyceum’s students and staff, with work scheduled to be completed by the end of 2025.

According to investigators, false information regarding the cost of materials and the actual scope of work may have been included in the certificates of completion, which could have led to an overstatement of the construction cost.

<picture></picture>SCREENSHOT: Prozorro

In June 2026, law enforcement officers conducted a search of the premises of the Department of Education, Culture, Youth, and Sports of the Stepivska Village Council, during which they seized documentation related to the procurement, conclusion, and execution of the contract, cost estimates, financial documents, correspondence with the contractor and regulatory authorities, as well as rough notes.

The judge concluded that these materials could serve as evidence to establish the circumstances of a possible crime and ordered them seized. A pretrial investigation is currently underway.

In June,Oleksandr Tsymakh, the former head of the “Center for Administrative Services” department of the Sofiivka Village Council, who was responsible for procurement, was sentenced to eight years in prison. For several years, he had used his official authority to enrich himself illegally.

Анна Бальчінос