The construction of a water pipeline between the Inhulets River and the Southern Reservoir has become the subject of an investigation due to misappropriation of budget funds. Approximately 7.4 billion UAH of state finances were received by the construction company, but instead of transparent work, corruption schemes were uncovered. To date, losses of over 240 million UAH have been recorded, but the actual damages could reach several billion hryvnias. Five members of the group have already been charged, facing up to 12 years in prison with property confiscation.

Law enforcement officers from the Strategic Investigations Department, together with investigators from the National Police, found that a group from the management of the construction company organized a scheme for embezzlement. They involved employees of controlled enterprises and a consulting engineer to carry out illegal actions.

The government allocated funds for infrastructure restoration following the terrorist attack on the Kakhovka HPP, which led to the construction of this water pipeline to supply Kryvyi Rih with water.

In July 2024, contracts worth over 7.3 billion UAH for the execution of works were signed. To implement the corruption scheme, the fraudsters inflated prices for construction materials, purchasing them through affiliated companies. For example, pipes that cost 16,000 UAH were resold for over 24,000 UAH. Thus, budget funds were siphoned off through controlled firms.

Police conducted numerous searches, seizing documents and equipment containing information about the criminal activities. Five individuals have been charged under Article 191 of the Criminal Code of Ukraine, including the company owner and an engineer who received a certificate from the engineering guild.

The investigation continues, with expert evaluations appointed to confirm the facts of inflated prices and volumes of work. Law enforcement is gathering evidence to hold those responsible accountable.