Embezzlement firm wins contract for Kherson region's water supply system

More than UAH 15 million for the reconstruction of a water supply system in Kherson region may be awarded to a company that entered the tender without a single competitor. The company has previously been involved in cases of unfulfilled work and possible embezzlement of the budget.

TheCenter for Public Investigations investigated the details of the procurement and the contractor's activities.

The Velyko Oleksandrivka Village Council announced a tender for the reconstruction of the main pressure water supply system between the village of Tverdomedove and the village of Bila Krynytsia in Beryslav district of Kherson region. According to the Prozorro system, the tender is for adjustments to an existing project. The expected cost of the work is UAH 15.83 million. The reconstruction should be completed by October 30, 2026.

SCREENSHOT: Prozorro

Most of the funding - more than UAH 13.19 million - is planned to be received with the support of UNICEF. Almost UAH 2.64 million will be allocated from the local budget as part of the public investment program in the housing and utilities sector.

Only one company, Ukrspetsoborudovaniye LLC, applied to participate in the tender. The company offered to perform the work for UAH 15.833 million, which is only slightly cheaper than the expected purchase price. The company is currently waiting for the contract to be signed.

SCREEN SHOT: Prozorro

The bidder is required to confirm the availability of equipment, specialists and experience in performing similar works. Payment for the work performed is to be made after its completion - within 30 calendar days.

According to YouControl, the company was registered in 2000 in Mykolaiv with an authorized capital of about UAH 6 thousand. Its owners are brothers Andriy and Maksym Krylov from Odesa. Previously, the company belonged to their father , Anatolii Krylov, so the business is family-owned.

During its participation in public procurement, the company has earned more than UAH 442 million. The largest profit was recorded in 2025 - over UAH 143.5 million. Among the main customers are Mykolaivvodokanal, Tairivka Village Council, Bugaz, the administration of Korabelnyi district of Mykolaiv, and Kherson water and sewerage company.

SCREENSHOT: YouControl

For the first time, the tender for the reconstruction of this water supply system was announced by the Velyko Oleksandrivka Village Council in August 2025, when the expected cost exceeded UAH 21 million. As Intent wrote, the work was scheduled to be completed by June 2026. Even before the auction, participants claimed discriminatory conditions in the documentation.

According to experts, some of the requirements limited competition, as the law does not require separate certification documents for such works. The bidders believed that these conditions could artificially narrow the range of applicants.

Three companies submitted bids: Standard Stroy Mir LLC, Ekosnabud LLC, and Ukrspetsoborudovanie LLC. The latter won. Under the contract, the contractor has already received almost UAH 6 million. At the end of April 2026, the parties amended the agreement and reduced the procurement volume.

SCREENSHOT: Prozorro

The company has also been repeatedly mentioned in criminal proceedings. In particular, according to the ruling of the Kherson City Court of January 22, 2020, investigators were allowed to access the documentation of Ukrspetsoborudovaniye LLC in the case of the construction of water supply and sewerage networks in the Tavriyskyi district of Kherson.

The investigators checked certificates of completion, invoices and documents for materials and equipment used. Law enforcers asked to consider the petition without the company's representatives because of the risk of alteration or destruction of documents.

According to the case file, in 2016, the Capital Construction Department of Kherson City Council signed a contract with the company for the construction of water supply and sewage networks worth about UAH 4.7 million. In 2017, the works were officially accepted and paid for from the budget.

SCREENSHOT: YouControl

However, during the inspection, investigators found possible violations. According to law enforcement, some of the work specified in the documents was not actually performed. In particular, the absence of a sand base for the pipeline, signal tape, some earthworks, and the replacement of metal hatches with plastic ones.

Investigators assumed that budget funds worth more than UAH 100,000 could have been misappropriated by entering false information in the financial documentation.

Another proceeding concerned the repair of a sewer on Zalaegerseg Street in Kherson. According to the Kherson City Court's ruling of April 15, 2019, Ukrspetsoborudovaniye LLC could have received more than UAH 1.4 million for work that was not fully completed.

SCREENSHOT: YouControl

During the inspection, law enforcement officers recorded a torn hole, damaged pipes and incomplete repairs, although the facility was considered ready according to the documents. The court allowed construction, technical and economic expertise to be conducted to verify the actual scope of work and possible overpricing.

Despite the criminal proceedings and claims about the quality of the work, the company continues to receive budget contracts from local authorities.

In addition, more than UAH 250 million from the reserve fund was allocated to protect the critical infrastructure of the Kherson community without open bidding and with one contractor for all facilities. The largest contracts were awarded to the company of the former head of Zelenbud.

Анна Бальчінос