In Odesa region, officials and an entrepreneur could have embezzled millions from the budget

In Odesa region, BES detectives are investigating alleged embezzlement of budget funds during the construction of shelters and repairs. According to the investigation, tens of millions of hryvnias could have been misappropriated through fictitious transactions and inflated prices.

This was reported by the Center for Public Investigations.

The case file includes Kyiv Biotechnology Institute LLC, which received a number of contracts for construction work in 2023-2024. One of them concerned the construction of a radiation shelter: initially, the project cost exceeded UAH 44 million, but later the amount was reduced to UAH 30.3 million, which was fully utilized.

Despite the identified violations of the procurement procedure and recommendations to terminate the contract, cooperation with the contractor was not terminated. Instead, the parties entered into an additional agreement that effectively completed the contract after the funds were used.

After that, another contract was signed without an open tender for more than UAH 6.7 million. According to the investigation, this money was also spent in a short time.

Law enforcement officers assume that such a scheme could have been used to misappropriate the remaining budget funds. At the same time, the actual amount of work performed, according to preliminary findings, may not correspond to the data specified in the documents.

Detectives are also checking for possible artificially inflated prices for construction materials. This includes concrete, sand, and bricks, the cost of which could have been significantly increased to increase the total cost of the projects.

The investigation also found that the company received other budget contracts. In October 2024, it signed an agreement for almost UAH 20 million to repair the canteen, and later another agreement for more than UAH 2.5 million for additional work. Both contracts were paid in full.

In addition, the company received a contract for the overhaul of another facility worth more than UAH 84 million, part of which has already been spent. According to the YouControl analytical system, the founders of Kyiv Biotechnology Institute LLC are Oleksiy Olikin and Oleksandr Samokish.

After analyzing the estimate documentation, investigators concluded that in all cases there were signs of systematic overstatement of the cost of works and materials, which indicates a possible scheme of embezzlement of budget funds.

The court has now granted temporary access to the documents within the criminal proceedings. The investigation is ongoing, and law enforcement officers are identifying all persons who may be involved in the alleged fraud.

Also in April, in Odesa, a court seized property in a case of possible embezzlement of the budget during housing overhauls; officials of the city council and municipal enterprises could have been involved in the scheme. The losses are estimated at over UAH 80 million for 2024-2025.

Анна Бальчінос