City Council favorite will earn tens of millions on repairing shelters in Kherson without competition

In Kherson, another contract for the repair of shelters in educational institutions was awarded to the favorite of budget bidding in the region - Budpostach STSV LLC.

This was reported by the Center for Public Investigations.

On December 2, the Capital Construction Department of the Kherson City Council signed two contracts with the company.

Representatives of the city authorities decided not to hold tenders, concluding agreements worth 26 million 685 thousand 185 hryvnias without using the electronic system.
The terms of the first purchase include major repairs to part of the basement to build a simple shelter for Kherson Gymnasium No. 1 at 17 B Saints Cyril and Methodius Avenue, Kherson.

Photo: Screenshot from Prozorro.

For similar repairs at Kherson Lyceum No. 51, located on Budivelnykiv Avenue, the contractor will receive a slightly lower amount - UAH 10 million 673 thousand 7. All work must be completed by the end of August 2025.

Photo: Screenshot from the Prozorro website

Intent has already written that according to Youcontrol, Budpostach-STSV LLC, founded in Ivano-Frankivsk in 2008, had no tender history before the full-scale Russian invasion. Since 2023, the company has become the main contractor of the Kherson authorities, and this year it changed its registration address to 2 John Howard Street, Kherson. The head of the company is Oleksandr Valeriyovych Novokhatskyi from Ivano-Frankivsk.

The company started participating in procurement in 2016. During this time, they applied for 34 procurements, of which only 2 were competitive, and the rest were made without using Prozorro. They signed 33 contracts for a total amount of UAH 107.3 million.

Most of the agreements - 28 for a total of UAH 90.8 million - were signed by Budpostach-STSV LLC with the Civil Protection Department of Kherson City Council for the repair of shelters.

According to the CPR, the Opendatabot found one criminal resolution dated January 17, 2024. It turned out that the company in question was involved in a case of misappropriation of budget funds by prior conspiracy earlier this year.

In substantiation of the motion, the investigator noted that the Investigation Department of the Main Directorate of the National Police in Kherson region is conducting a pre-trial investigation in criminal proceedings dated 05.07.2023 on the fact of embezzlement and misappropriation of budget funds by officials during the conclusion of contracts for the overhaul of civil defense facilities in Kherson on the grounds of a criminal offense under Part 4 of Art. 191 of the Criminal Code of Ukraine.

The pre-trial investigation established that the officials, having entered into a conspiracy with contractors, including Budpostach STSV LLC, may have misappropriated and embezzled budget funds allocated for the overhaul of shelters and the purchase of reinforced concrete structures for them. The investigator appointed forensic construction and technical examinations to determine whether the actual scope and cost of the work performed by Budpostach STSV LLC was in accordance with the contracts.

The court, in turn, ruled to partially satisfy the investigator's motion and grant temporary access to the documents in the company's possession.

Ірина Глухова