Inflated prices were discovered in the construction of a school shelter in Kherson worth 90 million

The construction of a protective structure for one of Kherson’s schools has become the subject of a criminal investigation. Investigators believe that the cost of the work may have been artificially inflated in the official records.

This was reported by Intent, citinga ruling by the Zavodskyi District Court of Mykolaiv. 

According to investigators, Oleksandr Novokhatskyi, director of the contracting company Budpostach-STSV LLC, is suspected of embezzling public funds during the construction of a radiation shelter on the grounds of School No. 41 in Kherson. The amount in question is over 184,000 hryvnias, which, according to investigators, the contractor illegally obtained by entering false information into the work completion reports. 

According to the case file, in September 2024, the Capital Construction Department of the Kherson City Council entered into a contract with Budpostach-STSV LLC for the construction of a shelter on the grounds of School No. 41 on Kashtanova Street. The contract was worth over 89.9 million hryvnias.

Law enforcement officials allege that while in office, the company’s director signed the certificate of completion for December 2024, into which he allegedly entered false information regarding the volume of bitumen-rubber insulation mastic used. As a result, the cost of the work performed was inflated by 184,369 hryvnias. After the documents were submitted to the city’s capital construction department, the funds were transferred to the contractor. Law enforcement officials notified the man that he was suspected of misappropriating property by abusing his official position under martial law and of official forgery.

The basis for the suspicion was the results of construction-technical and economic expert examinations. According to the investigation, these confirmed that the cost of the work had been inflated by exactly 184,400 hryvnias. The case file also includes contracts, certificates of completion, and testimony from officials of the Capital Construction Department, the Treasury, and the State Audit Service.

The investigator requested that the suspect be remanded in custody with the possibility of posting bail in the amount of 186,368 hryvnias. According to the prosecution, there were risks of the suspect absconding from the investigation, influencing witnesses, destroying documents, and committing new offenses. The defense emphasized that the man is already subject to another preventive measure in connection with a separate criminal proceeding, is not evading the investigation, and all necessary documents have already been seized.

As a result, the court denied the request for pretrial detention and imposed a personal commitment on the man. Until August 19, 2026, he is required not to leave his place of residence without permission, to report any change of residence or employment, to refrain from communicating with witnesses in the case, and to appear when summoned by an investigator, prosecutor, or the court.

As reported by Intent, in January 2025, Oleksandr Novokhatskyi, the founder of the company “Budpostach-STSV,” was arrested. According to investigators, he received 572,000 hryvnias in illicit benefits from the head of Voltenergotrans LLC in exchange for influencing officials at the Khersonteploenergo Municipal Utility Company. Investigators claim that the suspect demanded 10% of the contract value for a project involving the renovation of the Regional Rehabilitation Hospital.

Анна Бальчінос