The former head of the Capital Construction Department of the Odesa City Council, Borys Panov, has been served with a new notice of suspicion for abuse of power entailing severe consequences. According to law enforcement authorities, the official’s actions during a 2018 housing procurement program for orphans caused 11.4 million UAH (approximately $280,000) in damages to the municipal budget.
In 2018, the Odesa City Council launched a social initiative to provide housing for orphans and children deprived of parental care, aimed at purchasing 22 apartments. Borys Panov, who then led the city’s Capital Construction Department, was appointed to oversee the procurement process.
Before signing the contracts, the official was legally required to verify that the property prices aligned with fair market value and to initiate an independent review of the appraisal reports. Instead, Panov accepted valuation documents provided directly by the sellers—the party with a vested interest in inflating the prices. As a result, the city council approved the purchases under the sellers’ terms without any prior regulatory verification.
The fraudulent activity was uncovered during a subsequent investigation that included independent structural, real estate, and economic expert appraisals. The findings revealed that the actual market value of the apartments was significantly lower than the price paid by the city, and the original appraisal reports contained severe methodological violations.
Investigation Details: The discrepancy between the funds allocated from the city budget and the actual market value of the 22 apartments amounted to 11.4 million UAH. This deficit is legally classified as causing damages on an especially large scale.
The former official is currently facing charges under Part 2 of Article 364 of the Criminal Code of Ukraine (Abuse of authority or office).
This case is not the first criminal investigation involving the former Odesa official. In September 2023, Borys Panov was served with a notice of suspicion for the misappropriation and embezzlement of public funds. Investigators alleged that he embezzled over 2 million UAH during the procurement of medical oxygen generators for Odesa City Hospital No. 8 during the COVID-19 pandemic.
Following his dismissal from office, Panov attempted to flee Ukraine by crossing into Romania in 2024 but was apprehended by border control. The investigation into both corruption cases is ongoing, as authorities continue to identify other potential accomplices involved in the schemes.