Former Official in Hostomel Suspected of Diverting 740,000 Hryvnias in Reconstruction Funds

Former Official Charged with Negligence in Reconstruction Funds Case

According to Главком: A former official of the Hostomel settlement military administration has been formally notified of suspicion regarding official negligence. This negligence led to the unjustified transfer of over 740,000 hryvnias in budget funds intended for rebuilding destroyed housing in the Bucha district. The Bucha police department, with the support of the Security Service of Ukraine (SBU), is conducting a pre-trial investigation into the matter.

Details of the Negligence Scheme

Law enforcement uncovered a scheme of official negligence during the reconstruction of homes in the Bucha district. The incident occurred in December 2022 when the official, acting as a budget fund manager, improperly executed his duties. He failed to ensure proper verification of the justification for expenses, the actual completion of work, and the reliability of project documentation. His actions resulted in an unjustified payment of 741,374 hryvnias to the accounts of a contracting organization.

According to the investigation, in one instance, a paid restoration project was never actually developed, while in another, the cost of documentation was knowingly inflated and did not correspond to the complexity of the work. The ex-official is charged with official negligence that caused grave consequences under Part 2 of Article 367 of the Criminal Code of Ukraine, which carries a potential penalty of up to five years in prison and a ban from holding certain positions.

Furthermore, information about payments made by the Hostomel settlement military administration disappeared from the state portal of public finances after journalists uncovered a series of sham recipients. The investigation indicates that a lion's share of the work was funded to individual entrepreneurs who did not actually perform the tasks. Notably, at least one of these contractors permanently resides in the temporarily occupied city of Donetsk. These sham individuals received contracts not through a competitive process, but via direct agreements signed by officials.

This case involves reconstruction work in a settlement heavily damaged during combat and Russian occupation in February-March 2022. In May 2023, the Verkhovna Rada passed a draft resolution to expand the powers of the head of the Hostomel settlement military administration in the Kyiv region. This incident highlights the critical challenges of ensuring transparency in post-war reconstruction, a major priority for Ukraine and its international partners.

The case underscores the vital importance of oversight for budget expenditures, especially in the context of rebuilding infrastructure after military conflict. Abuse in this area can severely hinder the recovery of devastated territories and the well-being of affected communities. The investigation is ongoing, and further details may reveal more about the scale of the problem and potential systemic flaws in managing budget spending.