Fictitious debts and works on paper: who received 50 million for heat supply in Mykolaiv region

A company with a controversial reputation and criminal records may be awarded a contract to repair heating networks in Pivdenoukrainsk worth more than UAH 56 million. Despite being involved in cases of fictitious transactions, the company has already won the tender and is awaiting the signing of the contract.

This was reported by the Center for Public Investigations with reference to the Prozorro procurement system.

At the end of June, the Construction and Repair Department of the South Ukrainian City Council announced a tender for the overhaul of the heating main along Nezalezhnosti Avenue. The expected cost of the project was UAH 56.5 million. The contractor must complete the reconstruction by December 15, 2026.

Screenshot: Prozorro

The auction on Prozorro took place on July 7 and brought together three companies: KRM-Stroymart LLC, Ed Temp LLC, and Effekt PE. Although the offer of the latter company was not the lowest, it was this company that was recognized as the winner of the auction. The cost of its final bid was reduced by about UAH 3.5 million, and the contract is now being approved.

PE Effect has a controversial history. According to criminal proceedings in 2018, a group of people tried to fraudulently extort money from the head of DPL Corporation, citing a fictitious debt to the company. In 2021, the Ternopil City District Court found that officials of the regional Road Service could enter into fictitious subcontracts with the company, which allowed them to receive payment for work that had not been completed.

According to YouControl, the company was registered back in 2005 with a registered capital of UAH 500. The main activity is the construction of residential and non-residential buildings. The total portfolio of won tenders exceeds UAH 95 million, with more than UAH 65 million being used by the company in 2025 alone.

Screenshot: YouControl

In April, Effekt signed a contract with Mykolaiv CHP for the reconstruction of heating networks at 3 Slobidska Street worth more than UAH 40 million, reducing the initial price by almost UAH 4.7 million. Thus, despite its small statutory base and ambiguous reputation, the company continues to successfully compete for large municipal projects and may receive another contract - this time to modernize the heating infrastructure of Pivdenoukrainsk.

Анна Бальчінос