Luhansk Oblast budget lost over UAH 28 million: regional state administration official suspected of negligence

The deputy director of one of the departments of the Luhansk Regional State Administration was reported on suspicion of official negligence. According to the investigation, improper control over the implementation of construction work led to losses of the regional budget by more than 28.1 million hryvnias.

This was reported by the Luhansk Regional Prosecutor’s Office.

What the investigation established

According to law enforcement officials, during 2021–2022, the official was responsible for organizing and controlling the implementation of construction work in the territory of the Luhansk region.

It concerned the reconstruction and overhaul of a residential building, kindergarten and educational institutions in Rubizhne, Stanytsia Luhanska, Lysychansk, Markivka, Bilovodsk and Krasnorichensky.

In February 2022, the official signed acceptance certificates for the completed work with contracting organizations.

At the same time, the financing provided for in the contracts from the State Regional Development Fund was not confirmed, and the funds were not actually transferred.

As a result, a debt arose to the contractors.

The contractors recovered the funds through the court

According to the investigation, the contracting organizations went to court and achieved the recovery of funds for the work, which, according to the documentation, was allegedly performed before the start of the full-scale Russian invasion.

The construction sites for which financial obligations arose are currently located in the temporarily occupied territory of Ukraine.

According to the conclusions of economic examinations, the improper performance of official duties by the official caused more than 28.1 million hryvnias of material damage to the budget of the Luhansk region.

What punishment does the official face

The suspect’s actions are qualified under Part 2 of Article 367 of the Criminal Code of Ukraine as official negligence that caused grave consequences.

The sanction of this article provides for imprisonment for a term of two to five years with deprivation of the right to hold certain positions or engage in certain activities for a term of up to three years, as well as the possible imposition of a fine.

Currently, law enforcement officers are deciding on the issue of choosing a preventive measure for the suspect and imposing an arrest on his movable and immovable property.

The pre-trial investigation is ongoing.

According to Article 62 of the Constitution of Ukraine, a person is presumed innocent until his guilt is proven in accordance with the law and established by a court verdict.