Forestry Officials Suspected of Rigging a $1.1 Million Cleaning Contract

Allegations Against a Branch of the Carpathian Forestry Office

According to Главком: Law enforcement officials suspect the leadership of a branch under the state enterprise Forests of Ukraine-specifically the Carpathian Forestry Office-of signing fraudulent contracts that caused substantial financial losses. The case revolves around a tender for office cleaning and window washing, with an estimated value of 44.7 million hryvnias (roughly $1.1 million). After the tender was awarded, the forestry managers laid off 80 cleaners, who then continued working off the books, receiving cash payments and bank transfers for their services.

Involvement of an Outside Firm

Despite not winning the tender, a company called PP LPK Zakhid-Lis was still brought in to perform the work. Owned by Petro Kichula from Ternopil, this firm was part of a network of businesses linked to the Babenko group. In March 2025, the State Audit Service found that one of the Babenko-affiliated enterprises declared it had planted 2.4 million trees, yet had only one officially registered employee. According to standard productivity norms, completing such a large task would have required at least 168 workers, raising serious doubts about the truthfulness of the claimed achievements.

Meanwhile, Forests of Ukraine is currently undergoing dissolution and must complete its corporatization by July 1, 2026. Ihor Zubovych has been appointed acting CEO of the enterprise. Evidence supporting the suspicions has been seized, and a court has already placed some of it under arrest. This situation highlights ongoing concerns about transparency and efficiency in Ukraine's forest management sector.

This case underscores broader challenges in managing state-owned enterprises in Ukraine, particularly in the forestry industry. As Forests of Ukraine moves through the corporatization process, the need for transparent tenders and strict financial oversight becomes even more critical. Open investigations like this could mark an important step toward improving governance in this sector and rebuilding trust in public institutions.

This situation is reminiscent of a previous scandal involving the state forestry sector, where an audit revealed a scheme worth $450 million linked to ghost companies. These revelations raise critical questions about the integrity and management practices within Ukraine's forestry enterprises. For more insights into the systemic issues affecting the industry, see how this phantom company scheme unfolded in the state forestry sector.