Schemes on the roads of Odesa region: how budget funds for repairs went into the "shadows"

In Odesa region, three defendants in a case of fraud in road repairs were released from criminal liability. The scheme involved forgery of documents and tax evasion during tenders for road repairs and maintenance in three regions.

This is evidenced by the ruling of the Dobroslavsky District Court of Odesa Region.

As stated in the court ruling, the organizer of the scheme coordinated with representatives of the Road Service in Odesa, Mykolaiv and Kherson regions, as well as with the Road Department of the Odesa City Council. He arranged for certain companies to participate in tenders and accelerate payment for the work performed. According to the investigation, due to the organizers' activities, the state budget did not receive hundreds of millions of hryvnias in taxes.

In addition, the organizer of the scheme ensured the participation of companies in competitive procurement, creating conditions of non-transparency and lack of competition. On his instructions, the director of Dorlider signed financial documents, represented the company in government agencies, banks and law enforcement agencies, supervised the repair and maintenance of roads in all three regions, and withdrew cash from the company's accounts.

The organizer entrusted Dorlider PE with the execution of primary documents, preparation of financial and tax reports and their submission to the tax service in Odesa region. The company's accountant had access to the Bank-Client system and transferred funds to counterparties' accounts.

In 2012-2014, at the instruction of the organizer, Dorlider PE entered into a number of contracts for the operational maintenance and repair of roads in Odesa, Mykolaiv and Kherson regions. The company also entered into contracts for the supply of inventory and services to contractors. Funds were received from customers from state-owned enterprises and private companies, including road services in all three regions. These transactions resulted in tax liabilities of over UAH 26 million.

The illegal activity consisted of documenting the alleged sale of goods, performance of works and provision of services to the contracting companies. These documents were submitted to the customers in order to generate a tax credit and overstate gross expenses, which allowed tax evasion. In particular, in December 2014, KNAP allegedly supplied Dorlider with 30.3 million hryvnias worth of inventory and Energia PCF with 40.6 million hryvnias worth of inventory. However, no funds were transferred to the accounts of the fictitious companies.

The court granted the lawyers' motion and released the three defendants from criminal liability due to the expiration of the statute of limitations. The seizures of property were also canceled.

Recently, in Odesa, law enforcement officers brought a case against officials of a utility company to court. According to the investigation, they misappropriated humanitarian power generators worth over UAH 2.2 million.

Анна Літман