Pickup trucks without documents and fictitious salaries: how Lysychansk’s housing and communal services “mastered” the budget
10 September 16:11
The audit revealed violations of almost UAH 20 million in the housing and communal services of Lysychansk (Luhansk region). This is reported by "Komersant Ukrainian" with reference to the State Audit Service of Ukraine (SASU).
The Lysychansk territorial community has been under Russian occupation since July 2022. Despite this, the city’s Housing and Utilities Department, which was relocated to Dnipro, continued to manage budget funds.
According to auditors of the North-Eastern Office of the State Audit Service in Luhansk Oblast, the department’s work was accompanied by numerous financial violations. The total amount of identified losses and uncontrolled expenses exceeds UAH 19 million.
Security pickups that don’t exist
One of the key episodes was the purchase of six pickup trucks worth almost UAH 9.8 million. According to the plan, the vehicles were to be used to improve public safety and eliminate the consequences of man-made and natural emergencies.
But the utility did not have the necessary documents to register the vehicles. Neither did their suppliers. In addition, the auditors found that the technical characteristics of the purchased pickups did not meet the tender conditions. The price analysis showed that the vehicles were purchased at 33-40% higher than market prices. As a result, budget losses are estimated at almost UAH 10 million.
Read also: Auditors demand to update rules for calculating construction costs to reduce corruption risks
Heating network without heat and documents
Another problematic area is the subordinate utility Lysychanskteplomerezha. Despite the loss of its core business after the occupation (heat and water supply), the company continued to receive funds from the city budget.
Between July 2022 and June 2024, more than UAH 14 million was spent on salaries and accruals for employees. At the same time, the auditors found that most of the primary documents were missing. This made it impossible to confirm the legality of the expenditures and the validity of budget allocations.
Fictitious salaries and millions on cards
Particular attention was paid to the period from July to December 2022. Back then, the company spent the remaining budget funds in the amount of UAH 9.75 million. As it turned out, the money was paid on the basis of fictitious information.
Nine employees received a total of about UAH 3 million to their card accounts as remuneration under civil law contracts. For example, one person received more than UAH 608 thousand over three months, and another received more than UAH 523 thousand.
The analysis showed that these amounts were listed after taxes and the unified social tax, meaning that the actual budget expenditures were even higher. At the same time, it is still unknown for what kind of work people received such funds.
Responsibility and next steps
The official responsible for the purchase of the pickup trucks has already been brought to administrative responsibility. The audit materials have been submitted to law enforcement agencies for further investigation.
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The State Audit Service emphasizes that the lack of primary documentation and control mechanisms creates risks for further embezzlement. At the same time, the example of Lysychansk demonstrates that even after the occupation, some bodies continued to spend the community’s money without actually performing their functions.
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