Court disputes over the Shuliavskyi Overpass
One of the most high-profile financial episodes in the activities of the municipal enterprise Kyivavtodor under the leadership of Oleksandr Hustyeliev was the case related to the Shuliavskyi Overpass. On 22 September, the Supreme Court dismissed a cassation appeal in a dispute that envisaged the recovery of 1.12 billion hryvnia from the contractor. The initial contract value was 598.5 million hryvnia, but after the conclusion of additional agreements, the amount exceeded one billion.
The Competition Protection Committee (AMCU) established collusion between the companies Pivnichno-Ukrainskyi Budivnytsnyi Alyans and Spetsbud-Plus during the procurement process. Among the signs of coordinated actions, experts recorded shared IP addresses, overlapping personnel and banking documents. The total size of fines for these companies amounted to 56 million hryvnia.
Particular attention was drawn to a detail: the municipal enterprise, which acted as the customer, disputed the invalidity of the contract. It remains unclear whether it will be possible to actually recover over 1.1 billion hryvnia from the contractor, which, according to court materials, is undergoing pre-bankruptcy rehabilitation. As noted, the court decision does not guarantee the return of funds to the budget, and only the actual execution of the verdict will allow an assessment of whether the community will receive these funds back.
SBU investigation and audit checks
Oleksandr Hustyeliev headed the Kyivavtodor corporation from April 2015. In February 2020, the Kyiv City Council appointed him deputy head of the Kyiv City State Administration. As early as March 2017, the Security Service of Ukraine and the General Prosecutor's Office initiated an investigation into the alleged embezzlement of nearly 300 million hryvnia. According to reports from that time, during searches of the case participants, approximately 4 million hryvnia in unaccounted cash was seized. Separately, the State Audit Service identified over 11 million hryvnia in inflated expenditures and violations in contracts worth 418 million hryvnia. Hustyeliev himself denied that the cash was found directly in the corporation's premises.
The materials of criminal proceedings No. 12017000000001327 described a probable scheme for diverting 11.4 out of 37 million hryvnia allocated for road marking. Between June and August 2017, these funds were transferred to the company DORBUDREZERV-UKRAINA. The investigation claimed that the actual work was performed by municipal employees, while private companies provided only documentation and created an appearance of competition. The case materials also featured the companies KOLOR S.I.M., UKRDORPLAST and AVTOMAHISTRAL.
Separately, the case regarding the procurement of technical salt was examined, with suspicions of price inflation and fictitious competition. The materials of production No. 755/1645/17 referred to 40,798 tonnes of salt with a total value of 36.45 million hryvnia, supplied by the company KOSTANZA at a price ranging from 828 to 909.6 hryvnia per tonne. Its competitor in the tender was the company UKRSOLINVEST. The documents emphasised that the charter capital of both companies was only one thousand hryvnia.
Scandal over the construction of the Podilsko-Voskresenskyi Bridge
Another large-scale tender scandal was the construction of the Podilsko-Voskresenskyi Bridge Crossing. AMCU established collusion between the companies ECO-BUD-TRADE and FORMA during the procurement, the expected value of which was 6.103 billion hryvnia. The committee included shared IP addresses, banking devices and other circumstances indicating the coordination of participants' actions as evidence of coordinated conduct. Fines totalling 182.6 million hryvnia were imposed on these companies. The total cost of the bridge construction approached 20 billion hryvnia. Journalists linked the contractor to the entourage of former Kyiv City Council member Denys Komarnytskyi.
In November 2021, Vitali Klitschko dismissed Oleksandr Hustyeliev from the position of deputy head of the Kyiv City State Administration against the backdrop of problems with meeting the bridge construction deadlines.
Audit of Kyivavtoshlyakhmist and personnel changes
An audit of the municipal enterprise Kyivavtoshlyakhmist for the period 2017–2019 revealed financial violations amounting to 32.2 million hryvnia. Of this amount, 4.94 million constituted losses, and another 6.6 million represented inefficient expenditures. At the time of the inspection, the enterprise was headed by Dmytro Kotlubey, who later became an adviser to Oleksandr Hustyeliev. His former deputy Valentin Osipov headed the transport department of the Kyiv City State Administration in February 2020.
Comments
No comments yet. Be the first!