State Audit Service Investigates Mykolaiv Security Tender Issues

The State Audit Service of Ukraine has begun monitoring the procurement procedure for the Mykolaiv Oblast Recovery and Development Service. The monitoring concerns a tender for the service's security for more than half a million hryvnias that has already been held.

According to the Center for Public Investigations, according to the Prozorro electronic public procurement system, in January, the State Service for Infrastructure Restoration and Development in Mykolaiv Oblast held an open tender for the purchase of security services to ensure the safety of its facility.

The expected cost of the procurement was UAH 676 thousand 368.

Four bidders submitted proposals, and three bidders attended the auction on January 27. The selected contractor was to protect the facility until January 1, 2026.

Screenshot: Prozorro

Oddly enough, it was not the Mykolaiv-based Varta with the lowest bid that was chosen, but rather a company from Kyiv with the highest bid of UAH 506,880. There were complaints about the tender before the bidding process. Safe Way Grizzly LLC filed a complaint about the discriminatory requirements of the tender documentation. After review, the complaint was withdrawn because the customer eliminated the violations. This company won the tender, and the contract was signed on February 10.

However, on February 18, the State Audit Service of Ukraine announced that it had started monitoring the procurement procedures. As part of the audit, the auditors requested justification of the expected cost of services, technical specifications and other aspects of the procedure. The customer is obliged to provide relevant explanations and documents within three business days.

The auditors reminded that, in accordance with Article 351¹ of the Criminal Code of Ukraine, failure by an official to comply with the lawful requirements of a state financial control body or providing it with knowingly false information is punishable by a fine of one hundred to one thousand tax-free minimum incomes, or probationary supervision for up to three years, or restraint of liberty for the same period.

Screenshot: Prozorro

The conditional winner, Grizzly Group of Companies LLC, was registered in November 2023, according to the YouControl online analytical system.

The owner is Vadym Shcherbakov. The main KVED of the company is the activity of private security services. There are 21 companies related to the company, one of them is Research and Production Enterprise UKRPROMARSERVICE PJSC. The beneficiary has 18 enforcement actions and 10 court cases in its history. Most of them are related to bank debts.

Despite its youth, the company has earned UAH 13 million 853 thousand 363 in public tenders. Public funds make up a significant share of the revenue structure (60% or more). Shortly before participating in public procurement, the company underwent registration changes. A match was also found in the Myrotvorets database.

Recently, Khersonelectrotrans ordered physical security services for its facilities. They will cost the utility more than UAH 1.2 million. Two companies competed in the tender: Kyiv-based security firm Grizzly-Storoz and Kherson-based Municipal Guard. Grizzly-Storoz won the tender with a bid of UAH 1.2 million. For this amount, the company will protect the company's facilities until 2025.

Анна Бальчінос