Company with embezzlement case to repair historic building in Odesa

Emergency repairs in a historic building in Odesa were awarded to a company with a mixed reputation. Earlier, the company was involved in a case of possible abuses during the repair of an educational institution's shelter.

TheCenter for Public Investigations found out who is behind the contractor and what risks may accompany its activities.

According to the Prozorro system, the Department of Municipal Economy of the Odesa City Council signed an agreement for emergency repairs in a building at the corner of 52 Nizhynska Street and 10 Kira Muratova Street in the Prymorskyi district. This is the Vernet apartment building, a cultural heritage site of local significance.

SCREENSHOT: Prozorro

The expected cost of the work was UAH 10.08 million. This is the amount of the contract awarded to BC Deluxe Development LLC. The works will be paid for from the city budget as part of the housing infrastructure development program.

The procurement was carried out under a direct procedure after open bidding failed due to the absence of participants. This allowed the customer to conclude the contract without a tender in accordance with the current resolution of the Cabinet of Ministers.

The works are scheduled to be completed by the end of 2027. The project includes a set of measures to strengthen the structures and prevent further destruction of the monument.

SCREENSHOT: Prozorro

Vernet's house is also of historical value: in the first half of the twentieth century, the famous zoologist and professor Mykhailo Lignau lived here.

According to the YouControl analytical system, BC Deluxe Development LLC was registered in 2017 with a registered capital of UAH 10 thousand. The company specializes in the construction of residential and non-residential facilities. Among the founders are the NGO "Shchyt" and Yevhen Sudakov.

Over the years of participation in public procurement, the company has received contracts for more than UAH 150 million, including more than UAH 56 million in 2025 alone. Among the main customers are the structures of the Odesa City Council, Odesa Regional State Administration and Nerubai village council.

SCREEN SHOT: YouControl

At the same time, the company has repeatedly come to the attention of journalists and law enforcement. For example, according to the Kyiv District Court of Odesa, in July 2023, the police opened a criminal investigation into possible abuses by officials of the Nerubai village council and a number of contractors, including Davmir Stroy and BC Deluxe Development.

The investigation was looking into the alleged misappropriation of budget funds during martial law. At that time, BC Deluxe Development received contracts for the repair of the shelter of Academic Lyceum No. 1 for more than UAH 7 million.

SCREEN SHOT: reyestr.court.gov.ua

As part of this proceeding, the judge allowed an inspection of the shelter in Nerubaiske to verify the actual scope and cost of the work performed to collect evidence of a possible criminal violation.

In April, law enforcement officers in Odesa exposed a possible scheme to embezzle budget funds during the restoration of the historic Ukrainian Theater building. The head of the contracting company is suspected of falsifying documents and embezzling money, and was taken into custody.

Анна Бальчінос