Overpriced work on an artesian well: the prosecutor’s office is demanding that almost half a million be returned to Kyiv through the courts
15 January 15:15
The Kyiv City Prosecutor’s Office has filed a lawsuit with the Commercial Court of the capital against a private contractor who built an artesian well in Obolon. The prosecutor’s office is demanding that nearly UAH 490,000 in damages be paid to the Kyiv budget, as well as penalties.
The lawsuit was filed in the interests of the state, represented by the Kyiv City Council, according to "Komersant Ukrainian".
What are the claims about?
As established by the investigation, a contract was concluded between the specialized municipal enterprise Kyivvodfond and a private company for the construction of a low-capacity artesian well on Vyshgorodska Street in the Obolon district.
During the pre-trial investigation of the criminal proceedings, expert examinations and analysis of documents showed that the cost of the work had been overstated. In particular, the acceptance certificates indicated larger volumes of drilling and casing pipe installation than were actually performed at the site. According to experts, some of the work was duplicated on paper.
What are the consequences for the budget?
According to experts’ estimates, the overstatement of the volume of work caused losses to the Kyiv budget in the amount of almost UAH 490,000.
In addition, the terms of the contract provide for a penalty in case of breach of obligations. Based on the volume of overpriced work, the prosecutor’s office is also demanding that the contractor pay almost UAH 100,000 in penalties, which is 20% of the cost of the work performed.
The Commercial Court of Kyiv has already opened proceedings in the case. The court must determine whether the contractor actually caused losses to the budget and whether they are subject to compensation along with the penalty.
