Photo: SBU
Law enforcers uncovered a large-scale scheme of embezzlement of budget funds in the Dnipro City Council, which caused losses to the state of over UAH 34 million. Three owners of local advertising agencies, in cooperation with city council officials, embezzled a significant part of the funds intended to promote the activities of the city council. This was reported by the SBU.
The scheme consisted in winning tenders for SMM services, advertising and coverage of the city council’s activities by controlled entrepreneurs. They embezzled almost a third of the total UAH 123 million allocated for these purposes in 2021-2023.
According to the investigation, the tenders were won by individual entrepreneurs who offered inflated prices and had nothing to do with marketing activities. To implement the scheme, city council officials entered false information into financial and business documents. After receiving the money from the city council, the entrepreneurs cashed the money and distributed it among themselves, and provided actual advertising services at minimal prices.
During the searches of the suspects’ residences and offices, law enforcement officers seized mobile phones, equipment, bank cards and draft records confirming the illegal activity.
Ten participants in the scheme have already been served with a notice of suspicion under the Criminal Code of Ukraine on creating a criminal organisation and misappropriation of property on a large scale. The defendants face up to 12 years in prison with confiscation of property.
The pre-trial investigation is ongoing, and law enforcement officers are identifying all those involved in the crime.
