In Odesa, the court considered a request by prosecutors to seize property in the case of possible embezzlement of budget funds for food for hospitals and social institutions. The case involves contracts worth more than one billion hryvnias and alleged price overcharging through related companies.
According to the investigation, there was a well-established scheme in the region, under which prices for food and catering services for public institutions were systematically increased.
According to the pre-trial investigation, in 2024-2025, a stable mechanism for supplying food and ready-to-eat meals to medical, educational and social institutions at significantly inflated prices was formed in the city and region. According to the investigation, the key role in it was played by the related companies Fabrika Smaku LLC and Project Invest XXI LLC, which regularly received contracts for significant amounts.
The main customers included the regional mental health center, city hospitals, children's boarding schools, and local authorities. The total amount of agreements with Fabrika Smaku alone exceeded UAH 1.2 billion, and more than UAH 680 million with Project Invest XXI.
Law enforcement officers found that the products were purchased through an intermediary at market or even lower prices, after which they were resold at a markup of up to 40-80%.
In particular, potatoes were purchased at UAH 12-19 per kilogram, while in the documentation they were already listed at UAH 22-25. A similar scheme was applied to meat products. As a result, the inflated cost of raw materials was included in the final price of food for budgetary institutions.
As part of the case, in February 2026, security forces searched the office of Fabrika Smaku, where they seized financial documents, contracts, and computer equipment. The prosecutor requested that the property be seized to preserve the evidence, but the court refused.
The judge noted that the prosecution had failed to prove the need to seize the seized materials and had not substantiated the risks of their loss or destruction. In addition, some of the documents are public, and their blocking could complicate the activities of the enterprise that provides food in the social sphere.
As a result, the motion was returned to the prosecutor for revision, giving him 72 hours to eliminate the deficiencies. The investigation is ongoing.
Last year, Odesa held tenders for the organization of catering in general secondary education institutions for 2026. The total value of the procurement exceeds UAH 354 million. The Center for Public Investigations analyzed the results of the bidding and drew attention to the lack of competition and the reputation of the winning companies, including Fabrika Smaku.
