Financial Audit of Lutsk's Municipal Budget
The State Audit Service of Ukraine has concluded its review of the Lutsk City Community's budget, covering the period from January 1, 2020, to September 30, 2025. The investigation uncovered financial violations totaling 800 million hryvnias, with direct losses to the community amounting to approximately 400 million hryvnias. The audit focused heavily on the activities of the Lutsk City Council's Capital Construction Department, where significant manipulations of the municipal housing stock were identified. This audit is part of broader anti-corruption efforts in Ukraine's public sector.
Specifically, due to decisions made by officials, the city failed to receive dozens of apartments valued at over 75 million hryvnias. Furthermore, property developers were forgiven millions in unpaid infrastructure development fees for years. A number of these developers failed to fulfill their obligations to pay these mandatory contributions, accumulating debts of 45.6 million hryvnias. For nearly six years, the Capital Construction Department neglected to file lawsuits to recover these funds.
Consequences of the Mismanagement
Additional violations involved the transfer of a land plot for multi-story residential construction. The plot was provided under a sublease agreement without a proper investment contract. According to the original development tender, the investor was obligated to transfer 13% of the total constructed housing area to the community. However, in the final signed agreement, the Capital Construction Department agreed to a fixed number of only 13 apartments, regardless of the project's final scale.
This substitution of a percentage for a fixed quantity resulted in the city losing housing worth nearly 20 million hryvnias. The total budgetary losses from this single episode are estimated at 56 million hryvnias.
The audit findings are being prepared for submission to law enforcement agencies. This development follows a recent vote by Lutsk city council deputies to support the early termination of the authority of Mayor Ihor Polishchuk and City Council Secretary Yuriy Bezpyatko. On December 19, 2025, detectives from Ukraine's National Anti-Corruption Bureau (NABU) conducted searches at the Lutsk City Council, a move confirmed by Deputy Head of the Council's Information Department, Oleksandr Olyshevskyi.
Commenting on his dismissal, Ihor Polishchuk stated: 'This resignation is absolutely not connected to either NABU or the audit. I do not consider it necessary to detail the circumstances that prompted me to write such a statement.'
The completion of the Lutsk budget audit has revealed substantial financial misconduct with potentially serious repercussions for local governance. The identified losses and deficiencies in capital construction management call into question the effectiveness of the city council's operations. The handover of the audit materials to law enforcement indicates potential criminal liability for officials, which may lead to further investigations and changes in local administration.
The recent audit findings have raised serious questions about the management of Lutsk's municipal resources, particularly in light of the ongoing investigations into local governance. This situation echoes the recent decision by the removal of key city officials following NABU raids, underscoring a broader context of accountability and transparency issues within the city’s administration.