You're reading: Prosecution raids Kyiv City State Administration, alleges embezzlement

Kyiv prosecutors searched the Kyiv City State Administration on Oct. 11.

Prosecutors allege that the city’s sports department officials embezzled $26,000 by transferring money to low-profile construction firms. According to the prosecution, companies allegedly connected to Kyiv officials inflated the cost of repairing a municipal stadium.

Two unnamed officials were charged with embezzlement and abuse of office.

The searches are only the most recent actions taken against Kyiv’s authorities, who are notorious for mismanagement.

Starting in early May, the State Fiscal Service and the Kyiv Prosecutor’s Office conducted over 70 searches of Kyiv officials, accusing them of corruption, tax evasion, abuse of office, embezzlement and fraud. A total of 13 people were charged, most of whom are incumbent officials connected to Klitschko.

Kyiv Mayor Vitali Klitschko has accused President Volodymyr Zelensky and his office of political persecution. The two have publicly criticized each other since Zelensky took office in May 2019.

Read More: Klitschko, Zelensky bump their heads over Kyiv, again

The Investigation Bureau launched corruption investigations of at least 11 municipal enterprises including the public transport operator Kyivpastrans and water supply company Kyivvodokanal. The bureau didn’t publish the names of suspects.

The bureau estimated on Oct. 4 that Kyiv is losing up to Hr 10 billion ($375 million) a year, due to corruption among city authorities.

According to the bureau, Kyiv’s yearly budget is Hr 60 billion ($2.5 billion), approximately one-sixth of which gets diverted into the pockets of local officials. The embezzlement is allegedly conducted through the uncontrolled distribution of funds among the 128 municipal utility service companies. Utility companies received about Hr 20 billion ($750 million) in 2021.

“The leadership and officials of the Kyiv City State Administration, using their powers, established stable corruption schemes,” the bureau said in a statement.

On Oct. 9, the Kyiv City Prosecutor’s Office charged two Kyiv officials and two subcontractors with embezzling money from the Kyiv’s Podilsky Bridge project.

According to authorities, the city-owned contractor “Directorate for Construction of Road Construction Facilities of Kyiv” paid $5.5 million (Hr 148 million) to low-profile subcontractors for the use of “specialist equipment,” which was not needed on the site.