Arrest of Municipal Enterprise Director
The director of a municipal enterprise responsible for maintaining green spaces in Kyiv's Desnianskyi district has been formally charged after an investigation revealed inflated prices for trees and shrubs. The company, part of the larger Kyivzelenbud municipal organization, awarded a tender for the supply of 4,000 seedlings worth a total of 6 million hryvnias. However, the contract price for certain items was artificially high: for example, Norway maple was listed at 7,260 hryvnias per unit, while the municipal enterprise's own valuation put it at just 2,495 hryvnias.
The municipal enterprise transferred 4.6 million hryvnias to the contractor, of which 1.2 million hryvnias constituted an unjustified overpayment. The director now faces charges under Article 191, Part 5 of the Criminal Code of Ukraine, which covers embezzlement of another's property under martial law on an especially large scale. If convicted, the penalty could include up to 12 years in prison, a ban from holding certain positions for up to 3 years, and confiscation of property.
Systemic Issues Within Kyzivzelenbud
This case is not isolated within Kyzivzelenbud. The head of the organization is also facing trial for alleged losses of 2.1 million hryvnias related to park repairs in the Obolonskyi district. A contract for major renovations around the Yordanske and Kyrylivske lakes was signed for over 9 million hryvnias. Additionally, two other Kyzivzelenbud officials have been notified of suspicion for embezzling around 1 million hryvnias during the restoration of Pozniaky Park. A tender for the capital repair of a retaining wall in Pozniaky Park was scheduled for 2024, with a winning bid of nearly 3.4 million hryvnias from a contractor.
Law enforcement determined that the municipal enterprise in Desnianskyi district, a subsidiary of Kyzivzelenbud, launched a tender to purchase seedlings—trees and shrubs—for maintaining parks, squares, and lawns in the area.
“The director of the municipal enterprise signed a contract with the winning businessman, who undertook to supply about 4,000 trees and shrubs worth 6 million hryvnias,” the Kyiv police press service stated.This incident has raised serious concerns about the management of public funds in the capital's green space maintenance sector.
This case highlights ongoing challenges in Ukraine regarding public resource management and the transparency of tender procedures, especially within the municipal sector. The charges against the director and other officials point to systemic weaknesses in overseeing budget expenditures, which could affect the quality of green space maintenance in the capital and fuel public criticism over how state resources are spent. The outcome of this investigation may prove pivotal for strengthening oversight mechanisms and preventing corrupt practices in similar areas.