The General Prosecutor’s Office of Ukraine conducts pretrial investigation in criminal proceeding on embezzlement of the loan, disbursed by the World Bank, Economic Truth reports, according to the Kyiv Pechersk Court ruling dd. 30 January 2017.
During the investigation, it was established that during the period between 2007 and 2013, the World Bank disbursed the loan for realization of the project «Development of City Infrastructure» in several regions of Ukraine, including Ivano-Frankivsk, Chernihiv and Donetsk regions.
The loan funds were disbursed against the security of the Government of Ukraine, and the main contractor of the project is the Ministry of Regional Development, Construction, Housing and Communal Services.
«The specified funds were allocated directly to the contractor and should have been used for reconstruction and modernization of the properties, belonging to water and sewer companies», according to the message.
However, the officials of utility companies transferred funds to the accounts of affiliated transit companies. Meanwhile, the unreasonably overestimated price of works was specified in contracts; in some cases, the works were not even performed.
«Then the noncash funds were converted to cash with the help of «fictitious» companies… and were distributed among the members of the criminal group. In addition, the loan liabilities on the specified investment projects are discharged through the state budget», according to the order.
