UKRAINE, KHARKIV, Aug 12 — The court satisfied the claim of the Prosecutor’s Office in Kharkiv and ordered the contractor to return to the state almost UAH 900,000 ($21,688) that was not spent under the contract for building fortifications in the Kharkiv region, said the Prosecutor’s Office.

At the beginning of May 2024, the Ministry of Defence reported the completion of fortifications in five directions, including the Kharkiv Oblast. On May 10, 2024, Russia started a new offensive north of Kharkiv Oblast. By the end of the month, Russia had occupied 173,81 square kilometers north of the region, and the lack of proper fortifications in the region sparked dissent.

In February 2024, the Kharkiv region military administration department signed a contract with the company for building a fortification costing UAH 22 million ($527,577).

The department made an advance payment of UAH 9.9 million ($237,410) to the company. According to the contract, this payment had to be used to purchase materials, and after completion of the work, they had to be confirmed by acts or returned if there was a surplus.

“The customer consistently noted that the building was strategically important for the region’s defense capabilities, so the deadlines for completion and the targeted use of money were critically important,” said the Prosecutor’s Office.

The company failed to meet the deadlines and did not return advance money to the budget.

The Prosecutor’s Office filed a suit to recover unused money and penalties. The court established that the terms of the agreement were violated and confirmed the state’s right to return almost UAH 900,000.

Also, the National Agency on Corruption Prevention revealed that in cooperation with suppliers, officials purchased fortifications at an inflated price, causing budget losses of over UAH 2.7 million ($64,748).

On July 15, Andrii Rudenko, former Kharkiv deputy mayor, remained in custody without the right to bail. According to the investigation, he was involved in the embezzlement of funds allocated for defence fortifications. The invesigation is ongoing.

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