Fictitious losses and inflated tariffs: what is known about the corruption scheme in the heat supply of Prykarpattia
16 December 15:21
The police of Ivano-Frankivsk region have announced the exposure of a corruption scheme in the supply and production of heat energy, which, according to investigators, has resulted in the withdrawal of more than UAH 71 million from the budget, "Komersant Ukrainian" reports.
The scheme involved supplying heat to about a quarter of the regional center’s residents.
What is the essence of the scheme?
According to the investigation, the organizer set up two limited liability companies that received licenses for the production and transportation of heat energy. Through the lease of boiler equipment and heating networks, the offenders effectively took control of the entire heat supply chain.
Investigators claim that a key element of the scheme was
- artificially inflated tariffs for heat production;
- underestimation of the percentage of technological losses during transportation;
- laying down excessive profitability in the tariffs.
How the scheme worked
In 2021-2023, the group members submitted a package of documents to the Ivano-Frankivsk City Council to justify the tariffs. After their approval, the group entered into contracts with the utility company worth over UAH 400 million.
Upon completion of the work, the parties signed acceptance certificates with, according to law enforcement, inflated cost of services. As a result, from January 2021 to April 2023, more than UAH 71.2 million was misappropriated from the budget.
Who is involved in the case
on December 12, four participants in the scheme were served with a notice of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine – misappropriation of property by abuse of office on a large scale.
The role of law enforcement
The scheme was uncovered by regional police investigators with operational support from the SBU, the National Police’s Strategic Investigations Department and the State Audit Service. The regional prosecutor’s office provides procedural guidance.
The pre-trial investigation is ongoing. The court will choose a measure of restraint for the suspects. If found guilty, they face up to 12 years in prison with confiscation of property and a ban on holding certain positions.
