Searches in Kyiv City State Administration and hospitals: officials suspected of embezzling budget funds during the purchase of medicines

Law enforcement officers have launched an investigation into alleged abuses during the procurement of medicines and medical devices for hospitals in the capital. According to the investigation, officials of the Kyiv City State Administration's Department of Health could have lobbied a number of suppliers, as a result of which prices for goods increased 3-5 times. The proceedings are being conducted within the framework of criminal case No. 12025100000000988 dated July 31, 2025.

The Main Directorate of the National Police of Kyiv is investigating possible massive budget abuses during procurements by the Department of Health of the Kyiv City State Administration. The investigation has been opened 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 on a large scale).

According to investigators, department officials organized a "criminal mechanism" for the supply of medicines and medical devices at inflated prices - with annual procurement volumes exceeding UAH 2 billion. The focus of the investigation is a number of suppliers, in particular Medgarant LLC, Protek Solutions Ukraine LLC, Artek Medical Group LLC and Kato Scientific and Production Company - they were the ones who, according to the investigation, were lobbied in tenders.

Law enforcement officials claim that one of the key roles in the scheme belonged to an advisor to the now former First Deputy Head of the Kyiv City State Administration, Mykola Povoroznyk. Allegedly, this advisor coordinated technical specifications with suppliers and sent them to the Deputy Director of the Department, who supervised the working group on the preparation of procurement requirements. The working group then, according to the investigation, “unhinderedly” approved these technical requirements — which effectively narrowed the circle of possible bidders and ensured victory for the right companies.

The criminal case materials separately mention a case: the purchase of endoprostheses and sets of instruments in the spring of 2025 (expected cost — UAH 123.3 million). According to the investigation, the technical and medical requirements for this purchase were developed by representatives of the Kato Private Enterprise, and the documents reached the department through intermediaries — in particular, doctors from the relevant hospital. The winner in the relevant lot was this private enterprise.

During the investigation, law enforcement officers conducted a number of searches, including at the residence of the Department's authorized person for public procurement (Trebukhiv village, Brovary district). The seized mobile phones and other media were recognized as physical evidence; some of them were seized by court orders, while others were refused due to lack of evidence of the need for arrest.

The investigation has not yet released estimates of total possible budget losses — there are no approximate figures in the court rulings. Law enforcement officials report that the active phase of the investigation is still ongoing and gaining momentum.

From the list of persons involved and structures mentioned in the materials, it is clear that the attention of law enforcement officers is focused on the period of the Department's work under the leadership of Valentina Ginzburg (director from October 23, 2017 to October 13, 2025). Officially, her dismissal/retirement coincided with the beginning of active investigative actions. The name of Mykola Povoroznyk, a long-time first deputy head of the Kyiv City State Administration, who was called the curator of the "medical" direction at the city hall, also appears in the text of the case; according to the investigation, Povoroznyk's advisor allegedly coordinated work with suppliers.

What is known about the companies mentioned in the investigation:

  • Medgarant LLC is a supplier of medical equipment, has a significant number of government contracts; the head is Artur Zhulinsky, the beneficiary is Oleksandr Ostrovsky.

  • Protek Solutions Ukraine LLC and Artek Medical Group LLC are also active participants in state tenders; the media previously linked them to the circle of businessman Mykola Kuzma.

  • PE "Scientific and Production Firm "Kato"" is a supplier that, according to the investigation, prepared the requirements for the tender for endoprostheses.

Incidents and questions regarding the work of the Kyiv Department of Health are not new: in 2020, Valentina Ginzburg was criticized for her reporting on the provision of medical facilities with protective equipment at the beginning of the pandemic; also in 2021, some of her deputies came under suspicion in various episodes related to procurement. However, to date, there have been no final conclusions in many of the previous cases.

After Ginzburg left, Tetyana Mostepan temporarily headed the department; after the departure of Mykola Povoroznyk, the department's work is being monitored by the first deputy head of the Kyiv City State Administration, Petro Panteleyev (acting). Representatives of the Kyiv City Hall have not yet provided public detailed comments on the progress of the investigation and possible financial losses to the budget.

Law enforcement agencies continue investigative actions and document circulation: they seize electronic media, interview the suspects, and clarify the scope and mechanisms of the alleged abuses. The final conclusions and the amount of possible losses to the city budget will be known after the completion of the examinations and relevant procedural steps.

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