Intent logo

Nov. 18, 2024, 1:54 p.m.

Misappropriation of funds and a contract for 68 million: construction of a shelter for a school in Kherson region was awarded without bidding

PHOTO: Transparency International Ukraine

(PHOTO: Transparency International Ukraine)

In Kherson region, a school shelter contract worth 68 million was awarded to a company that was previously accused of fraud, overpricing and misappropriation of budget funds.

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

On November 11, the Beryslav Academic Lyceum signed an agreement for the construction of a civil defense facility for more than UAH 68 million without bidding.

The multimillion-hryvnia contract was awarded to Karat Finance LLC, which was previously accused of involvement in an organized criminal group, misappropriation and laundering of budget funds, inflated prices and tax evasion. The company's bid was only 1% below the expected value.

Screenshot: Prozorro

The company has until December 25, 2025 to build the shelter for the school.

According to the YouControl online analytical system, Karat Finance LLC was registered in 2016 with a registered capital of UAH 4 thousand. The founder of the company is Pavlo Oleksiyovych Babenko. The main KVED is construction of residential and non-residential buildings.

According to the Dozorro monitoring portal, UAH 35.3 million was allocated for construction materials for the construction of the shelter, and selling prices for the largest items are 31-76% higher than market prices. In total, the company has three negative mentions in the media.

Since its inception, the company has earned UAH 261 million 124 thousand 238 from public tenders . The customers were mostly municipal institutions, enterprises and educational institutions of Kharkiv region.

Screenshot: Prozorro

According to the ruling of the Chuhuiv City Court of Kharkiv region, the company was part of an organized criminal group whose activities are focused on embezzlement and possession of budget funds, including financing of international and state programs, tax evasion, money marking, as well as receiving and providing undue benefits.

The scheme was implemented through the conclusion of fictitious contracts: with the help of controlled companies, inflated prices were set, VAT was illegally charged, and expenses were created that allowed the withdrawal of funds from the budget.

In early July, contracts for the repair of shelters in Kherson worth 15 million were awarded without competition to odious companies and a newcomer. Three contracts for more than 8 million were signed by the Civil Protection Department of the Kherson City Council, and one each by the Department of Civil Protection and Defense of the Kherson Regional State Administration and the Kherson Regional Municipal Emergency Rescue Service.

Also in Kherson region, the contract for repairing a school damaged by Russians was awarded to a company associated with corruption and money laundering. The Department of Territorial Development of the Kherson Regional State Administration announced a tender for the overhaul of the premises of the school. Only one bidder attended the tender and was awarded a contract worth more than 17 million.

Анна Бальчінос

You might also like:

March 13, 2025

Mykolaiv's Veselynivka Council Awards ₴3M Contract Amid Corruption Allegations

Mykolaiv Lyceum Students Face Danger During Air Raids as Shelter Delay Hits 2025

March 12, 2025

Bereg Trans Bud Secures ₴9.8M Contract for Radiation Shelter in Urozhayne Amid Controversy

March 6, 2025

Mykolaiv Awards ₴28.9 Million Repair Contract Amid Bid Rigging Probe

March 15, 2025

Kodyma's Northern Center for Vocational Education Selects Contractor for Basement Overhaul

Feb. 28, 2025

Kherson Prosecutor Stops ₴11.4M Shelter Repair Contract Amid Concerns

March 8, 2025

Chornomorsk Village Council Signs ₴1.5M Roof Overhaul Contract Amid Controversy

March 7, 2025

Dar'yivka Village Council Awards ₴2M in Contracts for Educational Facility Upgrades

Odesa Allocates ₴8.91M for Overhaul of Two Civil Defense Structures

March 15, 2025

Kherson Region Allocates ₴398.4M to Rebuild 52 Homes in Posad-Pokrovske

March 9, 2025

Kherson Region Announces ₴238M in Tenders for Housing Repairs After russian Attacks

March 6, 2025

Kherson Region Allocates ₴528M for Defense in 2025 Amid Budget Cuts

March 9, 2025

Mykolaiv Announces ₴34.4M Tender for Heating Main Modernization

March 14, 2025

Construction of Outpatient Clinic in Davydiv Brid Costs ₴ 15.3M More

Mykolaiv Announces ₴15.6M Tender for Administrative Building Overhaul