Mykolaiv region exposes abuses in repairs involving local officials

In Mykolaiv region, a court allowed investigators to seize documents from a company suspected of abusing public procurement. The case concerns a major overhaul in Voznesensk, where the scope of work and cost of materials may have been overstated.

This is evidenced by the ruling of the Voznesensk City District Court.

The judge granted the investigator's request for temporary access to the company's documents as part of the investigation of criminal proceedings under Part 2 of Article 364 of the Criminal Code of Ukraine - forgery and abuse of power.

The investigation found that officials of the district administration, acting against the interests of the service, could lobby for the victory of controlled companies in public procurement and accept work at inflated prices.

According to the Prozorro electronic procurement system, the contract in question is a contract dated October 16, 2023, between Voznesensk Water Supply Utility and Hospodar-2 LLC for the overhaul of a shed at 2 Mykhailivska Street for more than UAH 963,000. The works were carried out from October 16 to December 31, 2023.

The audit revealed possible discrepancies between the actual work performed and the data in the reporting documentation: the scope of work and the cost of materials could have been overstated, and the actual work did not correspond to the estimate.

To clarify the actual scope and cost of the work, the court allowed the investigators to seize from the contractor a full set of design and estimate documentation, acts of completion, author's supervision logs, certificates and technical passports of materials, consignment notes, certificates of labor costs and use of equipment, as well as documents on organizational and personnel decisions of Gospodar-2 LLC.

The investigators emphasized that the seizure of the documents was necessary to conduct a construction and technical examination, as well as further handwriting and commodity research. In case of refusal to provide access to the documents, the investigator will have the right to apply to the court to conduct a search.

Last year, Petro Pestov, director of the Voznesensk-based company Hospodar-2, who had ties to Oleksandr Kukuruza, a member of the regional council and head of the Voznesensk District State Administration, was placed under nightly house arrest. He is suspected of embezzling budget funds allocated to repair the roof of a school in Voznesensk, and the court also imposed a temporary seizure of a part of his apartment.

Анна Літман