45 million for house renovation: how the Kharkiv budget goes into the pockets of affiliated companies

A large-scale embezzlement scheme involving high-ranking city council officials and affiliated companies has been exposed in Kharkiv.

According to the analysis of procurements in the Prozorro system, officials of the Kharkiv City Council, in particular the First Deputy Mayor Oleksandr Novak and the Director of the Department of Improvement, Reconstruction and Reconstruction Kostyantyn Lyska, together with a number of contractors, established a mechanism for non-transparent use of funds.
The key executor in these processes was LLC "RAT" (EDRPOU 38159487), which systematically wins multi-million tenders without proper competition.

An indicative example is the major renovation of a house at 4 Akhiyezeriv Street, costing over UAH 45 million. Contract No. 6/АВР-24 provides for the possibility of free adjustment of the cost of work and materials. This opened the way for overpricing:

  • fittings — 50% above the market;

  • metal-plastic windows are 23% more expensive;

  • corrugated board is 33% more expensive.

Thus, the city budget creates a cushion for multi-million overpayments that go into the pockets of affiliated individuals.

RAT LLC has already been the subject of criminal proceedings, in particular over schemes involving the reconstruction of sports grounds. Despite this, the company continues to receive contracts worth hundreds of millions of hryvnias, effectively remaining a "favorite" of the city council.

In connection with these facts, a complaint was filed with the competent authorities with a demand to conduct a comprehensive audit of the activities of the Kharkiv City Council, check contractors, identify manipulations with prices and financial flows, and bring those responsible to justice.

This practice calls into question the efficiency of using budget funds, undermines trust in the authorities, and deprives Kharkiv residents of the high-quality infrastructure changes they are counting on.

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