The significant deficit of funds to maintain Odesa’s viability came about due to misappropriations by those who organized the sale of Hr 61 million hryvnias worth of municipal bonds a year ago, according to Acting Mayor Mykola Biloblotsky in report of the government committee for auditing the city executive committee.
Deputy Prime Minister Biloblotsky called the bond scam “the crime of the century.” Only one quarter of money borrowed (Hr 15 million) was spent where it was supposed to be, in housing and garage construction. Hr 12 million was used to purchase shares in a Kyiv bank. Then shares were handed over to managers of a number of one-day companies, who exchanged them for Hr 12 million in cash. The auditors failed to find the money, structures, or their managers.
The Deputy Premier noted that the government will not pay off the debt of Odesa city council because it does not have money and has no responsibility before the creditors. We should note, that the whole Odesa bonds project would not be possible without the support of top officials.
However, Chairman of the Stock Market and Securities Committee Oleh Mozhovy told Interfax-Ukraine that the decree on issuing municipal bonds was legal and did not include any contradictions. He said also that all Hr 61million went into the city budget. He opposed dramatizing the situation and underlined that the state has filled its function and the investors purchased the bonds at their own risk.






