In Odesa, price inflation of 20 million was uncovered during a pipe procurement

A million-hryvnia procurement contract for an Odesa municipal enterprise has come under scrutiny by law enforcement authorities due to a possible significant overpricing of materials. An expert assessment revealed that the market price of most of the goods could have been several times lower than the amount specified in the contract.

This was reported by the Center for Public Investigations.

According to the investigation, in July 2024, the municipal enterprise“Odesa City Heat Supply” entered into an agreement with LLC “Truboizolkomplekt Trading House” for the supply of pipes, flanges, and elbows worth over 22.5 million hryvnias.

During the investigation, a forensic commodity appraisal was conducted, which determined that the actual market value of most of the purchased materials at the time the contract was signed was approximately 2.05 million hryvnias. This discrepancy between the purchase price and the experts’ assessment served as the basis for a further investigation into the circumstances surrounding the tender.

Investigators paid particular attention to the documents submitted by the bidders. According to their assessment, the commercial proposals contained similar formatting elements and closely matched price figures, which could indicate possible coordination of actions during the determination of the expected procurement cost.

In June 2026, law enforcement officers conducted a search of the residence of one of the individuals involved in the case. During the search, an Apple iPhone 14 Pro Max was seized and designated as physical evidence due to the likely presence of information on it that is relevant to the investigation.

The court granted the investigation’s motion and ordered the device seized. According to the court, this is necessary to preserve potential evidence, conduct forensic examinations, and prevent data loss. The pretrial investigation is ongoing.

Also in the Odesa region, the director of a municipal enterprise and his deputy will stand trial on charges of extorting bribes from a businessman. According to investigators, the officials demanded regular “kickbacks” in exchange for the opportunity to provide sewage treatment services.

Анна Бальчінос