Journalists found out who in Odesa and Mykolaiv regions is making money on the recovery

The Center for Public Investigations made a film about the restoration of facilities damaged by Russian attacks in Odesa and Mykolaiv regions, and according to journalists, some procurements were not without fraud.

The journalists made an investigative film on this issue and analyzing which contractors are performing reconstruction work in Odesa and Mykolaiv regions, the CPR suspected that some work may be performed poorly and with inflated prices.

The CPR analysts found that in the first year of the full-scale war in Odesa region, almost no funds were allocated for reconstruction - from February to December 2022, 224 lots were announced for a total of approximately UAH 123 million. Furniture accounted for 15% of the procurement volume. The most expensive lot in 2022 was a secret procurement for UAH 80 million. The funds for this procurement went to Avtostrada, a company from the group of Vinnytsia businessman Maksym Shkil.

In 2023, the Service for Infrastructure Restoration and Development in Odesa Oblast announced 164 procurements with an expected value of UAH 8.19 billion. The two most expensive procurements of 2023 were two secret construction projects totaling five billion hryvnias. Both contracts were concluded without open bidding. The contractors for these works were Rostdorstroy, a company of Yuriy Shumakher, a deputy of the Odesa City Council from the mayor's party "Trust the Deeds," and Automagistral-Pivden LLC, which also often receives budget contracts. We assume that the works may be related to the construction of defense facilities in the Odesa region or the laying of a new power line, as Oleh Kiper, the head of the Odesa Regional State Administration, said.

As of 11 months of 2024, 148 procurements with an expected value of UAH 7.95 billion have already been announced in Odesa region. By the end of the year, this figure is likely to be close to last year's. This year, the recovery service also spent money on construction, and another 11.49% of procurement was for oil products, fuel, and electricity. As of now, the largest procurement of 2024 was the remnants of works worth almost UAH 1.5 billion. The contract was awarded to Rostdorstroy LLC without open bidding. The object itself is not disclosed. Automagistral-Pivden also received two purchases of one billion each this year for the remaining work.

Кирило Бойко