Detectives of the Bureau of Economic Security of Ukraine, together with the Department of Strategic Investigations in the Zaporizhia region, uncovered a scheme to embezzle more than 6.4 million hryvnias allocated for the construction of fortifications in the region.
According to the investigation, officials of the Melitopol Regional State Administration acted in collusion with representatives of private enterprises LLC “Melcity” and LLC “PBK “AKVI-BUD”. During the execution of contracts, they overestimated the cost of materials and equipment, entering false data into estimates and reports. This allowed them to illegally appropriate more than 6.47 million UAH of budget funds. The fact of losses to the state was confirmed by forensic examinations.
On August 7, law enforcement officers conducted 11 searches simultaneously, seizing financial and business documentation, computer equipment, mobile phones, and company seals.
Suspicions under Part 1 of Article 209 (laundering of proceeds of crime) and Part 5 of Article 191 (embezzlement or embezzlement of property on a large scale) of the Criminal Code of Ukraine were announced against officials of both companies.
Both companies have long-standing ties to the head of the Zaporizhzhia OVA, Ivan Fedorov. Even before the occupation of Melitopol, they won most of the major tenders in the city, when Fedorov was the mayor. Earlier, we wrote that Melcity was the general contractor for the construction of the Ice Arena, a project that became a figure in a high-profile corruption scandal.
After the capture of Melitopol by the Russians, Fedorov tried to allocate another UAH 59 million from the state budget for the "completion" of the arena, which caused a public outcry and interested law enforcement agencies.
With Fedorov’s appointment as head of the Zaporizhzhia OVA, his former contractors again began to win large-scale tenders — now in Zaporizhzhia, in particular, for the construction of fortifications. The media drew attention in April 2024 to inflated prices, in particular for the so-called “dragon’s teeth” — the most common element of anti-tank defense.
The investigation is currently ongoing, and the involvement of the regional leadership in the embezzlement of funds at defense facilities may become one of the most high-profile anti-corruption scandals in Zaporizhia.
