In Balakliya, Kharkiv region, law enforcement officers have uncovered a large-scale corruption scheme involving the heads of the local military administration and a municipal enterprise. The officials are suspected of systematically misappropriating budget funds through fictitious tenders for the renovation of the interior of the Yuvileyny Hotel.
How the scheme worked
The investigation established that the officials and leadership of the CP acted as an organized criminal group. They controlled the entire process - from determining the funding objects to selecting contractors.
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The administration provided political cover and identified targets.
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The utility company prepared discriminatory tender conditions, concluded contracts with the "right" companies, and signed certificates of work performed.
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Contractors simulated repairs, received money, and divided it among the participants in the scheme.
Actual construction work was carried out minimally and through controlled companies, and estimates were systematically overstated by 2–4 times.
The officials appear in case No. 42025220000000211 under Part 4 of Article 191 of the Criminal Code of Ukraine (embezzlement, embezzlement of property or taking possession of it through abuse of official position, committed by an organized group on a particularly large scale).
Investigators are currently investigating:
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the circle of people involved;
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movement of financial flows;
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compliance with legislation in procurement;
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the actual amount of work performed;
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losses caused to the state budget.
The investigation is ongoing. Law enforcement officers do not rule out new suspicions, as the scheme could have operated systematically and encompassed not only the renovation project of the Yubileiny Hotel, but also other city infrastructure facilities.
