Financial Fallout from Diesel Generator Purchases in Bila Tserkva
The Bila Tserkva territorial community suffered substantial losses exceeding 5.3 million Ukrainian hryvnias during the 2024 procurement of diesel generators meant for wastewater treatment facilities. An investigation uncovered the misappropriation of public funds alongside irregularities in the tender process conducted under martial law. Specifically, suspects—including officials from the city council's Department of Housing and Communal Services and representatives of private companies—are accused of artificially inflating procurement costs and tailoring the tender to a specific generator model and supplier.
Investigation and Fallout
Two diesel generator units were purchased as part of this case in 2024. However, the probe revealed that the estimated procurement value was deliberately inflated, with the actual cost of the imported generators being significantly lower than the amount paid. Investigators documented a scheme to launder a portion of the funds through business accounts and individual entrepreneurs using fictitious services, as well as through non-repayable financial assistance.
To advance the investigation, authorities conducted 11 searches across the Kyiv region, the city of Kyiv, and Mykolaiv. These searches led to the seizure of:
- Mobile phones
- Laptops
- Financial and business records
- Handwritten notes
- Cash: nearly $90,000 USD, over 1.9 million UAH, and almost 16,000 EUR
- 7.62mm caliber ammunition
A company director has been notified of suspicion under Article 191, Part 5 (embezzlement and misappropriation of property through abuse of office) and Article 209, Part 1 (legalization of criminally obtained property) of the Criminal Code of Ukraine. The head of the procurement department at the Housing and Communal Services Department faces charges under Article 367, Part 2 (negligence of duty). Two other individuals involved have been notified of suspicion for complicity in property embezzlement and money laundering.
The pre-trial investigation continues under the procedural supervision of the Kyiv Regional Prosecutor's Office. This case raises serious concerns, as such actions undermine public trust in state institutions and could have severe repercussions for community infrastructure development.
This incident underscores the critical need for transparency and integrity in public procurement processes, especially during wartime when resources are extremely limited.
The ongoing issues surrounding procurement practices in Ukraine are not isolated to Bila Tserkva. A similar case involving the embezzlement of $18 million intended for generator purchases for the Armed Forces has recently come to light. This situation underscores a troubling pattern of financial misconduct within government contracts. For more details on this broader scandal and its implications, see the full report on the $18 million generator embezzlement scheme.