Briefly about the case
The head of a construction company has been notified of suspicion in a large-scale tax evasion scheme and possible legalization of illegally obtained funds. The pre-trial investigation is being conducted under the procedural guidance of the Kyiv Regional Prosecutor’s Office.
According to the investigation, in 2023–2025 the company carried out work funded by the state budget — road repairs, building repairs and the construction and equipping of shelters for state institutions and local government bodies. After receiving payment, the company was required to record the transactions in its reporting and pay VAT, but, according to law enforcement, the director deliberately understated the volumes of work and submitted false information.
"More than UAH 7.7 million did not reach the budget. In addition, the suspect transferred part of the funds between the company’s accounts and to his own, concealing their origin and presenting them as lawful income"
— Office of the Prosecutor General
The actions have been qualified under Criminal Code articles on tax evasion and money laundering. The investigation aims to identify those involved and the channels used to divert the funds.
Why this matters
The money is not simply a "loss" to the budget — these are projects that affect infrastructure and public safety: roads, shelters, repairs of administrative buildings. When a contractor falsifies reporting, it implies risks to the quality of work, delays in completion and additional costs for taxpayers.
Beyond the financial harm, such cases undermine trust in the public procurement system and complicate the rapid restoration of infrastructure during martial law.
What’s next and possible consequences
The investigation could lead to criminal prosecution, asset seizure and reimbursement of losses to the budget. At the same time, the case highlights the need for stricter audits of contractors, transparency in the allocation of funds and prompt oversight of the execution of critical works.
The effect on communities will depend on the speed of the investigation and the ability of local authorities to ensure the continuation or re-tendering of works without quality loss. If oversight is not strengthened, the risk of recurring schemes will remain.
It is now up to the prosecutor’s office and the contracting authorities: will they be able to recover the funds and ensure that road and shelter repairs are completed to a high standard and on time?
