Suspected company of budget embezzlement received 90 million contract for reconstruction of Kherson region

In the Kherson region, one company received three contracts for the construction of residential buildings in the village of Posad Pokrovske, one of which was without competition. This company has been repeatedly mentioned in journalistic investigations and criminal cases. In particular, it is suspected of misappropriating funds during road repairs in Kharkiv region.

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

In early May, the Infrastructure Restoration and Development Service of Kherson Oblast announced three tenders for the construction of private residential buildings in Posad Pokrovskyi. The total budget of the projects exceeds UAH 94 million, and the work is scheduled to be completed by December 31, 2025.

Proposals were accepted until June 11, and auctions were scheduled for the same day. Two procurements for UAH 12.6 million and UAH 28.9 million were competed by Automagistral-Pivden and Energetichno-Roadstroy.

Screenshot: Prozorro

The third tender for UAH 53.2 million was held without competition - only one company submitted an application. All three tenders were won by Energy and Road Construction LLC. In two of the tenders, the company slightly reduced the price, and in the last one, it reduced the amount by only UAH 551.

According to the online service YouControl, Energy and Road Construction LLC was registered in 2005 with a registered capital of UAH 1.8 million. The main activity is the production of concrete products for construction. The company is affiliated with Life Service PE and Eurotunnelbud consortium and has been featured in 13 journalistic investigations.

The company's total revenue from public procurement exceeds UAH 10 billion.

Screenshot: YouControl

Among the co-founders of the company are Maksym Kokarev, Yuriy Klimov, Andriy Kositsyn, and Oleksandr Kiblyk, who is the husband of Olena Kiblyk, a former employee of the State Center for Certification of Agricultural Products.

The company is also involved in several criminal proceedings. In particular, the head of the company was suspected of allegedly embezzling budget funds during the repair of emergency damage to a road in Kharkiv region. The works in 2022 cost UAH 27.7 million, but in a frontline region, their value is not measured in money alone.

Another company suspected of misappropriating budget funds received a tender worth UAH 100 million for the reconstruction of a children's hospital in Kherson. This is a company that has previously disrupted the repair of an outpatient clinic in Davydovyi Brod and is involved in a case of abuse during work at a hospital in Mariupol.

Анна Бальчінос