No checks: four state agencies have not opened investigations into Chernivtsi premises

After four years of court hearings over a municipal premises at 5 Stepan Bandera Street in Chernivtsi, journalists approached state supervisory and law enforcement bodies. They asked them to assess the actions of the Department of Municipal Property and the city council, through which the budget could lose over 3.2 million UAH, according to the editorial office's calculations.

Responses were received from all four agencies, but none has yet initiated a check or investigation.

Case history

In 2022, the Department of Municipal Property of the Chernivtsi City Council disqualified auction participant Nataliia Vargotska, who had offered the highest rental bid. The contract was signed with Larysa Nahorniak, who received the premises only three years later, after court proceedings.

In February 2026, the Chernivtsi Court of Appeal ruled the contract invalid and concluded that Vargotska had been disqualified without justification.

According to journalists' calculations, the budget failed to receive approximately 2.16 million UAH in rent over three years. In addition, Nahorniak is demanding compensation for damages from the city, and the court of first instance partially upheld her claim.

No internal check was conducted at the Department, according to its head, Vadym Russu. Therefore, journalists turned to state agencies.

Response from supervisory bodies

The State Audit Service (SAS) stated that no planned audit or review of the Department of Municipal Property is scheduled for the third quarter of 2026. However, the inquiry was entered into the risk database to potentially be considered when planning future control measures. In other words, a check is not ruled out, but it has not been scheduled.

The State Tax Service (STS) did not examine the inquiry on its merits but forwarded it to the Main Directorate of the STS in Chernivtsi Oblast for review. No results have been announced yet.

The National Anti-Corruption Bureau (NABU) responded that at this stage, it has not established sufficient objective data on criminal offences falling under the jurisdiction of the Bureau's detectives. Therefore, it currently sees no grounds for a pre-trial investigation.

NAKA's position on the mayor

Separately, journalists asked the National Agency on Corruption Prevention (NAKA) to verify information regarding Mayor Roman Klychuk, who remains the ultimate beneficial owner of several companies linked to business in Chernivtsi. The agency stated that it had not established factual data indicating that after transferring corporate rights to management, Klychuk continued to personally manage the business activities of these companies.

Regarding questions about the possible abuse of office, NAKA noted that their legal assessment falls within the competence of law enforcement agencies.

The editorial office emphasises: there is no documentary evidence of a private interest by Roman Klychuk or other officials in this premises.

No one held accountable yet

Thus, the court established the illegality of the Department's decision, but no state agency has yet taken it upon itself to assess who is responsible for it. An audit is only possible in the future, the tax service forwarded the inquiry to the region, NABU does not see its jurisdiction, and NAKA refers the matter to law enforcement officers.

Meanwhile, appeals in the case are ongoing, and the city authorities have not disclosed how much the budget has spent on court proceedings. Journalists will monitor the review of the inquiries and whether the issue of personal liability of officials will lead to specific decisions.