Millions down the drain: corruption investigation launched in Pivdenoukrainsk over restoration work

The overhaul of heating networks in Pivdenoukrainsk, which began as a routine infrastructure project, turned into a criminal proceeding with signs of abuse of office. The replacement of pipes during the project caused dozens of breakthroughs and new budget expenditures.

This is evidenced by the ruling of the South Ukrainian City Court.

At the center of the case was the chief specialist of the urban planning and architecture department of the Pervomaisk City Council's executive committee, whose decisions not only led to multimillion-dollar expenses but also actually jeopardized the stable heat supply for residents.

A procurement worth millions

At the beginning of 2022, the Construction and Repair Department announced a tender for the overhaul of external heating networks. It was about an important section - from the heat chamber to the residential building on Naberezhna Energetikiv Street.

The expected cost of the work was over UAH 7.7 million. As a result of the open bidding, the winner was the private enterprise Demsei, which offered a slightly lower amount - about UAH 7.38 million.

In March 2022, the client and the contractor signed a contract that provided for the full implementation of the work in accordance with the approved design and estimate documentation. The repairs were scheduled to be completed by October 2022.

Additional agreements and abuses

Due to the imposition of martial law and delays in the supply of materials, the deadlines were repeatedly postponed. Additional agreements changed the completion date, which was eventually postponed until February 2023. However, along with the changes in the deadlines, there were also much more serious technical adjustments.

According to the case file, the head of the department approved the decision to change the type of pipes to be used in the repair. Instead of the seamless steel pipes envisaged by the project, it was decided to use electric-welded pipes. At first glance, this is a technical detail. But it was this detail that became the key to the whole story.

Initially, the cost of the pipes envisaged by the project was more than UAH 1 million. After the changes were made, this amount increased to more than UAH 4 million. In fact, we are talking about a fourfold increase in the cost of materials.

The investigation believes that such decisions were made against the interests of the service and without proper adjustment of the project documentation. Moreover, according to law enforcement, the official was aware of the technical risks of such a replacement.

In December 2022, certificates of completion and certificates of cost were signed, which already took into account the changed - and much larger - amounts. The documents were then sent to the Treasury, and more than UAH 6.8 million was transferred to the contractor's account. Thus, budget funds were paid for work that, as it turned out later, had serious flaws.

Dozens of breakthroughs and new expenses

The period after the completion of the work was the most revealing. Between 2023 and 2025, 96 hot water pipes burst in the repaired area. As a result, the city authorities were forced to spend budget funds again - this time on laying a temporary pipeline. It took more than UAH 1.27 million.

It is noteworthy that after the pipes were installed, which corresponded to the original design, the breakthroughs stopped. This actually confirmed that the problem was in the replacement of materials.

Suspicion, escape and search

In January 2026, the officials were notified of suspicion of abuse of office. This is a criminal offense under Part 2 of Article 364 of the Criminal Code of Ukraine.

However, at the end of December 2025, she left the territory of Ukraine, crossing the border with Moldova, and has not returned since. The investigation established that the suspect was hiding from law enforcement agencies. In February 2026, she was put on the wanted list.

The court, in turn, authorized a special pre-trial investigation - that is, in absentia, without the presence of the suspect.

As the CPR wrote, Iryna Prystavska was the head of the Department of Construction and Repairs of the Yuzhnoukrainsky (Pivdenoukrainsky) City Council. Until recently, she also held the position of chief specialist of the Department of Urban Planning and Architecture.

Subsequently, accidents regularly occurred in this area: From May 2023 to January 2025, 96 hot water supply breaks were recorded. To temporarily restore the system, the city had to lay an additional pipeline, spending more than UAH 1.2 million of budget funds. The investigation believes that the official acted in the interests of the contractor, abusing her official position.

Анна Бальчінос