Hundreds of millions and crime: what the reconstruction of a special school in Odesa has revealed

The reconstruction of the specialized school No. 75 in Odesa has been going on for six years. The work was carried out by a contractor who was previously involved in a case involving embezzlement of budget funds during the reconstruction of the Victoria Children's Camp.

The Center for Public Investigations has described how the reconstruction of the special school went and what "red flags" the contractor had.

Reconstruction project at DREAM

According to the DREAM ecosystem, the project at 4 Sadova Street involves the modernization of the school building and the improvement of the surrounding area. The total budget is UAH 120 million, of which funding for UAH 80.1 million (66.76% of the need) has been confirmed. The works include reinforcing part of the building, strengthening the wall of a neighboring residential building, replacing the floor waterproofing, updating internal engineering networks, and modernizing heating, water supply, sewerage, ventilation, and electricity systems.

SCREEN SHOT: DREAM

The school's grounds are to be equipped with new sidewalks, benches, trash bins, ramps for people with limited mobility, and landscaping. The trees on Sadova Street are to be preserved, and a temporary parking lot for two cars will be arranged due to the lack of parking spaces.

The work was commissioned by the Capital Construction Department of the Odesa City Council. The project was funded from the city budget: in 2020 - UAH 890 thousand, 2021 - more than UAH 10 million, 2022 - UAH 10.8 million, 2023 - more than UAH 58 million. The total cost of the project was about UAH 120 million.

Tenders, budget, and one contractor

According to the Prozorro public procurement system, a contract was signed with Monolith PE for the project worth UAH 59.3 million. The agreement was signed on November 6, 2023, following an open bidding process, and the contractor was to complete the work by December 31, 2024.

SCREENSHOT: Prozorro

At the same time, it turned out that the first tender for the reconstruction of the Odesa Special School was announced by the Capital Construction Department in February 2021 with an initial cost of UAH 58.3 million. Monolith PE and Grekov Trading House LLC came to the auction, and in March 2021, the agreement was signed with Monolith.

Under the first contract, the work was to last from March 2021 to December 2022. In June 2023, an additional agreement was signed stating that the work had been completed, and the contractor was to be paid 55.5 million hryvnias for the reconstruction of the school.

However, as Intent wrote back in 2020, the Capital Construction Department prepared a project for the reconstruction of Odesa Specialized School No. 75. In the summer of that year, the city council press service reported that the overhaul of the building at 4 Sadova Street was nearing completion.

SCREEN SHOT: Prozorro

According to the YouControl analytical system, Monolith PE was founded in 1999 and has a registered capital of UAH 6 million. Over the years, the company has earned more than UAH 397 million, with the largest amount being almost UAH 165 million in 2023.

Criminal "trail"

The company's activities have repeatedly been the subject of journalistic investigations and criminal proceedings.

For example, according to a ruling of the Kyiv District Court of Odesa, the SBI prosecutor filed a search warrant as part of a case of abuse of power. The investigation revealed that the Filatov Institute of Eye Diseases and Tissue Therapy signed a contract with Yug-Ukrstroy LLC in 2017 for the completion of a medical building on Frantsuzsky Boulevard in Odesa for UAH 274.7 million.

SCREEN SHOT: YouControl

Later, the parties signed additional agreements without a new tender and project adjustments, which increased the amount first to UAH 391.6 million and then to UAH 477.5 million, while the investigation did not find documents confirming the legality of such increases.

Victoria Children's Camp

According to the ruling of 18.12.2017 of the same court, the police of Odesa region investigated a case opened in December 2015 regarding the possible misappropriation of budget funds and forgery of documents during the reconstruction of the Victoria children's camp. According to the investigation, officials from Yug-Ukrstroy, Monolit and Stroysozstandartrotrozvytok may have acted in concert with the Capital Construction Department of Odesa City Council, entering false information into documents and misappropriating part of the funds.

At that time, wooden buildings were erected on the territory of the camp, one of which burned down on September 16-17, 2017; the work was carried out by Yug-Ukrstroy LLC with subcontractors.

According to Slidstvo.info, fireproofing of wood, for which Odesa spent more than a million hryvnias, was not carried out at all in some places. Such treatment is needed to make the wood withstand fire longer and slow down the spread of flames. During the inspection, experts also found voids in the walls and ceilings that could have caused the building to catch fire quickly.

SCREENSHOT: YouControl

Although the tender for the reconstruction of the Victoria children's camp was won by Yug-Ukrstroy, the actual work was carried out by the Odesa-based company Monolith. Part of the budget funds were transferred to shell companies, probably for misappropriation. The analysis showed that at least four companies that allegedly worked at the facility existed only on paper and were involved in a money laundering scheme.

Thus, the reconstruction of Odesa Special School No. 75 is being carried out by a company that has previously been involved in criminal proceedings and journalistic investigations for embezzlement of budget funds and negligence that could endanger the lives of children.

In 2020, Intent also wrote that the founder of Monolith PE, Liubov Reznikova, is one of the founders of the Passenger Cable Car rental company.

Анна Бальчінос