5 million hryvnias in damages: Law enforcement officers exposed multimillion-dollar schemes by the executives of two water utilities in the Zhytomyr region

5 million hryvnias in damages: Law enforcement officers exposed multimillion-dollar schemes by the executives of two water utilities in the Zhytomyr region

The Security Service of Ukraine and the National Police have documented cases of official negligence by the heads of two water utilities in the Zhytomyr region, resulting in losses of more than 5 million hryvnias to the budget.

This was reported to Suspilne by the spokesperson for the Zhytomyr regional office of the Security Service of Ukraine, Iryna Martynyuk.

According to her, case materials show that at the end of 2022, the head of the Zhytomyr water utility signed a contract with a private company for the supply of electricity.

"A month later, the official signed additional agreements initiated by the supplier, which unjustifiably inflated the price retroactively without verifying actual market fluctuations. The enterprise incurred losses amounting to over 3.4 million hryvnias," Iryna Martynyuk said.

The Security Service and National Police revealed multimillion-dollar schemes involving the heads of two water utilities in Zhytomyr region. National Police

A similar scheme was in operation at the Zvyahel water utility.

"Throughout 2021, the enterprise head signed nine additional agreements to the single annual contract, gradually increasing the electricity price and reducing supply volume. The tariff increased by almost 125% from the initial cost. These actions led to an excessive transfer of 1.85 million hryvnias," reported the spokesperson for the Zhytomyr regional office of the Security Service.

Losses incurred by the water supply and wastewater enterprises were confirmed by the results of forensic economic examinations.

"Based on evidence collected by the Security Service, both officials have been notified of suspicion under part 2 of Article 367 of the Criminal Code of Ukraine. As part of the criminal proceedings, the issue of suspending the officials from their duties is being considered," Iryna Martynyuk informed.

The spokesperson for the Zhytomyr regional police, Ivanna Siletska, reported that a 48-year-old Zhytomyr resident is involved in one of the schemes.

"The man, without conducting a proper market price analysis, signed contracts with an electricity supplier. As a result, the enterprise purchased electricity at significantly inflated prices for an extended period. Preliminary estimates suggest the manager’s actions resulted in losses of nearly 3.4 million hryvnias for the institution," Ivanna Siletska explained.

In Zvyahel, law enforcement officers uncovered criminal activities involving a 43-year-old head of a municipal enterprise.

"After signing the main contract, he concluded several additional agreements that stipulated an increase in kilowatt/hour costs and a reduction in supply without proper justification. Consequently, more than 1.8 million hryvnias were excessively transferred to the supplier," reported the spokesperson for the Zhytomyr regional police.

Under the article’s sanction, the officials may face up to five years in prison, with the deprivation of the right to hold certain positions or engage in certain activities for up to three years.

The head of the "Zvyagelvodokanal" communal enterprise, Oleksandr Tymofiyiv, refused to comment to Suspilne but stated he would fight for justice.

"Someone’s job is to clean the sewer, provide water, and someone’s job is to announce suspicions. People are working, we’re working. A suspicion is not an accepted accusation. Someone suspects that I have perhaps committed some wrong actions. I believe they are right, and the court will decide," said Roman Ilyk, director of the "Zhytomyrvodokanal" communal enterprise, in a comment to Suspilne.