Half a billion carve-up prevented in Odesa region

In Odesa region, a contract for works for budgetary funds worth UAH 500,000 was terminated. It concerns the repair of the Izmail-Kilia-Vylkove road, which was to be started by the Odesa-based Rostdorstroy company, which is affiliated with Mayor Gennadiy Trukhanov's Trust the Deeds party.

According to the Odesa Regional Prosecutor's Office, they filed a lawsuit in the interests of the state against the Odesa Regional Infrastructure Restoration and Development Service and the contractor. Under the terms of the agreement, the company was supposed to repair the public road of national importance T-16-07 on the Izmail-Kilia-Vylkove section. However, despite three years since the contract was signed, no work has been done.

The prosecutor's office found that the contract was concluded without proper financial support and appropriate budgetary allocations, but it continued to be in effect during this time.

After filing a lawsuit, the parties terminated the contract. Thus, the prosecutor's office managed to prevent the unjustified use of half a billion hryvnias of budget funds.

Intent wrote about this tender earlier. In May 2021, the Road Service in Odesa region signed a contract worth UAH 500 million 84 thousand with Rostdorstroy.

The company's ultimate beneficiaries are currently listed as Odesa City Council deputy Yurii Shumacher, a representative of the Trust the Deeds party, and businessman Yevhen Konovalov.

The contractor was supposed to complete the repair of the road section by the end of 2022. However, the deadline was repeatedly extended until the relevant authorities came to the attention of the authorities.

Last year, about 500 private commercial companies received almost UAH 150.5 billion from the state. Among the top five is Rostdorstroy LLC of the Rostdorstroy group, which received UAH 7.6 billion in government tenders. The total value of the company's winning tenders is almost UAH 470 billion. The group includes two other companies that, together with Rostdorstroy, received UAH 8.8 billion in public funds.

The Center for Public Investigations has investigated the most expensive tenders in Odesa region in the spring published on Prozorro.

"Rostdorstroy signed two contracts worth 2.6 billion in spring. One without the use of an electronic system and the other as a result of an open tender with specifics on the operational maintenance of public roads of national importance (different ones, not those that will be serviced by the Motorway). Since Rostdorstroy offered the lowest price, it was awarded the contract for road maintenance. The contract also runs until the end of 2026.

Ірина Глухова