Odesa budget missed out on UAH 594 million in rent - prosecutors

Odesa's budget, according to investigators, missed out on over UAH 594 million because a private company used municipal sewerage infrastructure facilities for more than five years without a properly executed lease.

The Prosecutor General's Office reported this on October 6.

Suspicions of official negligence were served on the current director of one of Odesa's municipal enterprises and two of his former managers.

This concerns two sewerage pumping stations and two collectors. In 2013, due to poor technical condition, these facilities were withdrawn from lease and transferred to a municipal enterprise for reconstruction.

Over USD 45 million in international bank loan funds was spent on their restoration. The loan repayment was made from the Odesa city budget.

After the reconstruction was completed, a private company that provides the city with water supply and wastewater services began using the facilities again. However, investigators allege there was no properly executed lease agreement for them, so the city did not receive separate rental payments.

According to prosecutors, from January 2020 to October 2025, the three managers of the municipal enterprise failed to take the necessary measures to formalize paid use of this property. Instead, the company operated the facilities under a maintenance contract.

After the reconstruction, the value of the pumping stations and collectors increased, and rental payments should have increased as well. A forensic economic examination concluded that over this period the city budget missed out on over UAH 594 million.

The actions of the three municipal enterprise managers were classified under Part 2 of Article 367 of the Criminal Code of Ukraine - official negligence that caused grave consequences. The court has already imposed pre-trial restrictions on them.

The reconstruction of Odesa's water and sewerage infrastructure using international loan funds was carried out as part of a large-scale city infrastructure modernization project. In particular, back in 2012, tens of millions of dollars from the World Bank were reported to have been attracted for the construction and reconstruction of the city's sewerage facilities.

The prosecutor's office reminded that suspects are presumed innocent until their guilt is proven by a court conviction.

Based on materials: Prosecutor General's Office, Uriadovyi Kurier