Report On Our Work in July

12.08.2015 Центр Протидії Корупції – громадська організація, яка об’єднує експертів з юридичного, медійного та громадсько-політичного секторів.
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We offer our sincerest thanks to everyone who supported our work in July. This month, we received 32,688 UAH with 10,850 UAH being utilized for the salary of our new lawyer. These donations were used effectively to return to the state budget a sum 10,000 times larger than this month’s donations: our organization prevented the misuse of 300 million UAH of state funds as a result of the reduction of a contract for the maintenance of Luhansk roads which are located in the temporarily occupied territories.

Please continue to support our work.

The Results of Our Work in July 2015

  • We completed a review of 4 cases totaling 1.9 billion UAH, including a case regarding the withdrawal of PryvatBank of 1.8 billion UAH on refinancing.
  • Our inquiries led to the discovery of violations in 5 tenders, on which 462 million UAH were spent.
  • We achieved the opening of 5 criminal proceedings, including a case against the State Food and Grain Corporation of Ukraine, whose management caused billions in losses for the state.
  • We appealed 18 corrupt tenders totaling 258 million UAH, including the project for the renovation of Lviv’s Saint George Square.
  • We saved the state 300 million UAH for the renovation of Luhansk roads by decreasing the total sum of the contract by 75%.

Top Cases Which We Started in July

  • We stopped the use of 1.75 million UAH for transformers which the state-owned energy company Ukrenerho ordered from the factory ZTR. The point is that the transformers, manufactured by a factory owned by the Russian businessman Kostyantyn Hryhoryshyn, were inflated two-fold. In addition, there are significant doubts regarding the feasibility of acquiring 27 of the most expensive transformers.
  • We are engaged in the process of bringing the head of the Cvyatoshyn Regional Administration Illya Sahaydak, who is suspected of illegal enrichment, to criminal responsibility. Having analyzed the declarations of officials from 2013 to 2014, questions have arisen about the source of wealth of Sahaydak and his family.

Spurred the Opening of 5 Criminal Proceedings

  • We spurred the opening of criminal proceedings based on the discovered facts of a scheme by the State Food and Grain Corporation of Ukraine, whose management caused billions of losses for the state.
  • We completed the upload of materials for criminal proceedings, which features the former head of the South-West Railway, Oleksiy Kryvopishyn, who used state funds to construct a private sport-leisure complex called the Olympic Village.
  • We achieved the opening of criminal proceedings, which featured the mayor of Druzhkivka in Donetsk Oblast. As it later became known, he was constructing an estate covering an area of 600 square meters, despite the lack of sufficient income for that official.
  • We achieved the opening of criminal proceedings regarding a deal in Mykolayiv, where the local utility company overpaid for waste treatment in the sum of 1.7 million UAH.
  • We spurred criminal proceedings regarding the forgery of documents by the winner of a tender for the capital renovation of the Children’s City Hospital No. 2 in Cherkasy valued at 1.79 million UAH.
  • We achieved the opening of criminal proceedings given the fact that 4 million UAH was used during the organization of the International Gymnastics Tournament, entitled the Ukraine Nation Cup, which was organized by the Olympic Champion Stella Zakharova.

Completed a Review of 4 Corrupt Tenders Totaling 1.9 Billion UAH

  • We completed a review of tenders in the Ukrtranshaz system for renovations valued at almost 52 million UAH.
  • We completed a review of tenders of the Odesa Sea Trade Port, which significantly overpaid for fuel. The value of the tender was valued at 15.5 million UAH.
  • We completed a review of a tender regarding the withdrawal of 1.8 billion dollars from Ukraine which Pryvatbank presented as refinancing.
  • We completed a review of a tender of the Department of Utilities of the Dnipropetrovsk City Council. The point is that in the agreement, there was not any information regarding which specific roads they were planning on renovating with the contract sum of 36 million UAH.

Our Appeals Discovered Violations in 5 Tenders Valued at 462 million UAH

  • We detected violations in the activities of the infamous State Agency for Investment and Management of National Projects of Ukraine, headed by Vladyslav Kaskyv, which has cost the state at least 400 million UAH in losses. This government structure became famous for depositing millions of hryvnias in financial institutions, which soon ceased to exist.
  • We detected violations during the tender process of Kyivavtodor, which allocated 21 million UAH on the capital renovation of sewers in the Pechersk and Podilskyi districts in Kyiv. It should be noted that the tender conditions were drawn up by one of the participants in the tender process.
  • We detected violations in the tender process for the reconstruction of a kindergarten in Kyiv for the sum of 35.46 million UAH. Applications from companies with cheaper offerings were rejected for unusual and far-fetched reasons.
  • We detected violations in the tender process of the Odesa State Agrarian University for the sum of 6.73 million UAH. Companies with related personnel participated in the tender process.
  • We detected violations with the State Financial Inspectorate during the tender process of the regional education departments of Vinnytska Oblast regarding coal purchases.

Contested 18 Corrupt Tenders Worth 258 Million UAH

  • We contested the use of 28 million UAH for the reconstruction of Saint George Square in Lviv, where a monument to Metropolitan Archbishop Andrey Sheptytskyi was erected.
  • We contested a tender of Enerhoatom, which purchased cables for 60 million UAH from three manufacturers, but did not reveal the price paid per unit.
  • We contested a tender worth 20 million UAH for the purchase of coal for one of the branches of the Border Service, as cheaper offers were declined for unusual and far-fetched reasons.
  • We contested a tender of the Odesa Public Utilities, which purchased pipes while fabricating reasons for rejecting proposals that were 20% cheaper. The value of the purchase was almost 25 million UAH.
  • We contested the purchase of the state-owned enterprise Artemsil, which overpaid for shrink wrap by three times. In this instance of procurement, they were planning to allocate more than 17 million UAH of state funds.
  • We contested a medical tender in Lviv Oblast as a firm under the influence of the Dubnevych brothers won the tender. The competitor in the open competition for the 33 million UAH tender participated against the Dubnevych firm only “for show.”
  • We contested a tender of the Sokilnyky Village Council in Pustomytivskyi Region of Lviv Oblast worth 14 million UAH as the winner of the tender is a firm in the orbit of the Dubneyvch brothers, who are deputies in the Poroshenko Bloc.
  • We contested two tenders of the Pustomytivskyi Regional Hospital valued at 9.4 million UAH, as the winning firms were linked to the Dubneyvch brothers, deputies in the Verkhovna Rada. The primary competitor in the tender competitions was Lvivbud, which constantly loses tenders to Dubnevych firms.
  • We contested a tender of Lvivoblenerho valued at 2.7 million UAH, which was competed for by two closely-linked firms.
  • We contested a Pustomytivskyi Region tender valued at 200,000 UAH, as the participating firms had links between them.
  • We contested a tender worth 300,000 UAH, as the winner of the tender was created only a week before the tender competition. The purchase was conducted through a simplified procedure as dentistry products were in urgent demand.
  • We attempted to stop the use of credit funds by the Ukravtodor for the renovation of roads. It is important to note that the state-owned corporation established a scheme of non-transparent contracts, which made it possible to purchase services and materials at inflated prices from a closely-related company.
  • We contested a tender for the reconstruction of a boarding school in Slavuta in Khmelnytska Oblast valued at 16 million UAH. The director of the customer-company and the owner of the winning firm are representatives of the same political group, which may indicate impropriety in the tender process.
  • We contested a tender of the Mariupol Port, which awarded 12 million UAH in a competition of related firms.
  • We contested a tender of Selydivvuhillya valued at almost 8 million UAH, competed for by companies registered to the same address.
  • We contested the purchase of a state-owned enterprise for tablets at inflated prices. For this purchase, the state-owned company was planning to use 8 million UAH.
  • We contested a tender for Kharkiv trolleybuses valued at almost 2 million UAH, as two of the competing firms were headed by two brothers. Additionally, the prices for the tires were not reported.
  • We contested the purchase of tractors by the Public Utilities Company of Lviv at inflated prices. The total value of the tenders amounted to 1.8 million UAH.

Achieved Price Reductions in Tender Purchase Contracts

  • We achieved a price reduction in a contract for the maintenance and current renovation of roads in Luhansk Oblast from 387 million UAH to 93 million UAH. The majority of the roads are currently located in the temporarily occupied territories, meaning that there is no guarantee that the funds will be used appropriately.

We Are Calling For Penalties Against High-Ranking Officials

  • We are calling for the punishment of officials in the state-owned enterprise Uktranskhimamiak, who specifically did not apply penalties to the unfair company, which cost the state 300,000 UAH. We would like to penalize the officials who made this mistake.
  • We are stopping the pollution of land and forests in Bucha of Kyiv Oblast, which was backed by the head of the local city council Anatolyi Fedoruk and his godfather Volodymyr Karplyuk, the head of the Irpinskyi City Council.

The monthly reports from previous months are available here in English: June and May.

We offer our sincerest thanks for your support and trust!

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