State Audit finds UAH 800M violations in Lutsk budget
The State Audit Service of Ukraine has completed an audit of the budget of the Lutsk city community for the past five years and found violations totaling almost UAH 800 million. Part of this, about UAH 400 million, was classified as losses.
The inspection covered the period from January 1, 2020 to September 30, 2025. Among the main problems, the auditors named the activities of the City Council's capital construction department, as well as violations in the management of the housing stock.
In particular, due to certain management decisions, the community did not receive dozens of apartments with an estimated value of over UAH 75 million. In addition, some developers did not pay their share in the development of infrastructure for years, and the city authorities did not take measures to collect debts.
The auditors also recorded cases of changes in the terms of investment contracts, which caused the city to lose some of the housing it was supposed to receive from developers. It also turned out that land plots were transferred for use on terms that were later changed or not fulfilled, which led to multimillion-dollar budget losses.
In one case, the investor was supposed to transfer 13% of the total area of the constructed housing to the community, but when concluding the final agreement, this figure was replaced by a fixed number of 13 apartments. As a result, the city lost almost UAH 20 million worth of housing. Another episode concerns a land plot transferred in 2015 for the construction of high-rise buildings. According to the decision of the city council, 8% of the residential area was to be transferred to the families of the deceased and participants in the ATO. However, the plot was later subleased to the developer without concluding a corresponding investment agreement. As a result, after the commissioning of three buildings with a total area of over 16.6 thousand m², the community did not receive a single square meter of housing, which led to losses of UAH 56 million.
In addition, the audit found that the capital construction department has not initiated lawsuits for almost six years to recover equity from developers who began construction before 2021. This amounts to UAH 45.6 million in unreceived funds. The audit materials are being prepared for transfer to law enforcement agencies.
Let us remind you that a former SMS employee will be tried in the Odessa region for enrichment.
