In Mykolaiv, the case against a contractor in connection with the renovation of a high-rise building was dismissed

The renovation of the roof of a high-rise building on Okeanivska Street in Mykolaiv led to a criminal case against the director of the contracting company. He was accused of embezzling public funds.

The Center for Public Investigations looked into the details of the case.

The case involved a major renovation of the building at 50 Okeanivska Street. In November 2021, the Department of Housing and Public Utilities of the Mykolaiv City Council signed a contract with Budtechnologia-MK LLC for 320,700 hryvnias. After the work was completed, the parties signed a certificate of completion, and the department transferred the full amount to the contractor.

According to the prosecution, false information regarding the scope of work performed was included in the documents. Investigators believed that the actual cost of the work was 240,800 hryvnias, meaning the company allegedly received an overpayment of 79,840 hryvnias.

However, during the trial, these conclusions were not confirmed. The judge pointed out issues with the main construction and technical expert assessment, specifically the incorrect contract amount stated when the assessment was commissioned and the fact that the expert’s certification had already expired by the time the assessment was conducted.

In contrast, a second expert assessment, conducted at the defense’s request, determined the cost of the work actually performed and the materials used to be 337,060 hryvnias. This was more than the total cost of the two contracts for the project—335,690 hryvnias.

The court also did not establish that the director had the authority to dispose of the city department’s funds or that he had colluded with city council officials. 

As reported by Intent, in June, the court suspended proceedings for the third time in the case of a construction company director accused of embezzling budget funds during the renovation of a high-rise building’s roof. The reason was a repeat expert examination, without which the hearings cannot proceed.

Анна Літман