The management of the Kyiv Regional Road Administration has been exposed for a bribery scheme involving the leasing of state property
The Security Service of Ukraine, the National Police and the Office of the Prosecutor General have uncovered a large-scale scheme involving the misappropriation of funds at the state-owned enterprise ‘Kyiv Regional Road Administration’. As part of a comprehensive operation, three senior managers of the enterprise have been detained on suspicion of organising the systematic acceptance of bribes in connection with the leasing of state property.
According to the investigation, the scheme was organised by the administrator of a subsidiary currently undergoing reorganisation as part of bankruptcy proceedings. He enlisted the help of his deputy and the company’s commercial director in the illegal activities.
The investigation established that, instead of working on the company’s financial recovery, the management had set up a systematic scheme to obtain unlawful benefits from entrepreneurs who leased office and industrial premises from the state-owned company.
To carry out the scheme, the officials let out the premises without proper documentation and at artificially low rates.
Payment for the use of state assets was made by handing over cash bribes directly to the company’s management. According to the case file, the officials received over 100,000 hryvnias every month from just four clients.
Law enforcement officers documented the suspects’ activities and arrested them whilst they were handing over yet another sum of illicit gain.
During the arrest, one of the suspects attempted to dispose of material evidence and threw some of the money out of the window of his office.
The detainees have now been notified of the charges against them under Part 3 of Article 28 and Part 3 of Article 368 of the Criminal Code of Ukraine. They face up to 10 years’ imprisonment with confiscation of property.
Separately, law enforcement officers have classified the actions of the four tenants who paid the bribes. They have been notified of the charges against them under Part 3 of Article 369 of the Criminal Code of Ukraine. The penalty under this article provides for up to 8 years’ imprisonment with confiscation of property.
The investigation is ongoing. Law enforcement officers are identifying all those involved in the scheme.
