Price-fixing scheme worth UAH 20.7 million uncovered in Odesa over traffic light power supplies (photo)
Law enforcement officers in Odesa have uncovered a scheme involving inflated prices for uninterruptible power supply units and batteries for traffic lights. According to the investigation, those involved in the scheme illegally misappropriated more than UAH 20.7 million in budget funds.
This was reported by the Odesa Regional Prosecutor’s Office on Telegram.
Investigators suspect the organiser to be the director of one of the companies who effectively controls a group of firms. He allegedly involved officials of the municipal institution “Specialised Installation and Maintenance Unit” of the Odesa City Council, a lawyer, and the heads of two other companies in implementing the scheme.
In 2024, during procurement procedures, companies controlled by the suspects won tenders and supplied traffic light equipment at deliberately inflated prices.
Seven individuals have now been formally notified of suspicion, including two officials of the municipal institution, the owner of the group of companies, two company directors, a lawyer, and an employee of an affiliated enterprise. They are suspected of large-scale misappropriation of property committed under martial law (Part 5, Article 191 of the Criminal Code of Ukraine).
Searches were conducted in the offices of the municipal institution, at the suspects’ places of residence, at the premises of the beneficial owners of the companies, at the registered addresses of the enterprises, and in the vehicles of those involved. Draft documentation, cost calculations for batteries and uninterruptible power supply units, as well as materials indicating coordinated pricing between affiliated companies were seized.
At the request of prosecutors, preventive measures have been imposed on the suspects.
In addition, one of the municipal officials has been suspended from his post.
Fraudsters are also renting out non-existent properties and disappearing with the money.
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