Officials at the Southern Regional Directorate of the State Labor Service of Ukraine face allegations of running a systemic kickback scheme targeting local businesses, alongside coercing their own inspectors.
Leadership at the Southern Regional Directorate of the State Labor Service in Odesa has reportedly orchestrated a widespread extortion network targeting local business owners, according to informed sources. Despite the recent arrest of First Deputy Chief Denys Mezenko by the State Bureau of Investigation (SBI), the scheme allegedly continues under the direction of Department Head Serhii Baidiuk and his deputy, Ruslan Pavlovskyi.
Reports indicate that agency officials leverage procedural technicalities to pressure local companies. Unscheduled safety audits are being launched following emergencies completely unrelated to occupational safety violations—including fires and the aftermath of Russian missile strikes.
Inspectors are reportedly ordered to conduct repeated, unsanctioned visits to private enterprises. The sole aim of these visits is to engineer hostile conditions that compel business owners to pay for «problem resolution.»
Alleged Extortion Rates by Enterprise Size:
Altering workplace accident investigation results: $2,000$ to $10,000$.
Securing «favorable» safety audit outcomes: $2,000$ to $5,000$.
During the summer season, the operation has shifted its focus toward beach clubs and resort hotels across Odesa and the surrounding coastal area. Field inspectors have reportedly been instructed to carry out relentless walkthroughs of hospitality venues.
During these visits, venue managers are met with threats of heavy administrative fines as well as warnings that local military recruitment centers (TCC) will be mobilized to draft their young employees unless protection money is paid to the agency’s leadership.
The arrest of First Deputy Denys Mezenko for allegedly taking bribes from training centers has yet to dismantle the broader operation. Insiders report that agency leadership has taken steps to deflect law enforcement scrutiny away from top management to keep the scheme operational.
Additionally, public attention has been drawn to Deputy Chief Ruslan Pavlovskyi, who recently acquired a new vehicle that has not been disclosed in his official financial declaration.
Official statements from the State Bureau of Investigation and the National Police regarding the matter remain pending.