Former Deputy Prime Minister of Ukraine Oleksiy Chernyshov and former adviser to the “Great Construction” program Yuriy Holyk are reportedly seeking to remove online publications examining alleged corruption risks associated with the presidential infrastructure initiative, the use of COVID relief funds, the activities of the so-called “road cartel,” and their respective roles in the implementation of major infrastructure projects.
For our part, we are republishing an investigation that prevents the figures from removing from the public space information about the circumstances of the implementation of the “Great Construction”, the use of COVID fund resources, tender processes, and issues that have arisen for a long time around this program.
The presidential program “Great Construction”, despite its global idea of updating and renovating Ukraine’s infrastructure, may become a monument to corruption.
The revelations of former adviser to the head of the Presidential Office Andriy Yermak, Ihor Umanskyi, about the embezzlement of the COVID fund and the siphoning of money for the “Great Construction” cast a shadow over many people from President Volodymyr Zelenskyy’s circle who are responsible for the program. Who are all these people? First of all, Andriy Yermak himself, his adviser Mykhailo Podolyak, Minister for Regional Development Oleksiy Chernyshov, Deputy Head of the Presidential Office Kyrylo Tymoshenko, his assistant Yuriy Holyk, and the head of Ukravtodor Oleksandr Kubrakov. But the main thing is that the actions of all these managers of the “Great Construction” directions discredit personally President Volodymyr Zelenskyy.
Why Umanskyi
A separate and interesting question is why the main whistleblower was Yermak’s former adviser Ihor Umanskyi? Ihor Umanskyi’s career in the Presidential Office did not work out. The former finance minister was appointed by Volodymyr Zelenskyy in April this year as an adviser to the head of the Presidential Office Andriy Yermak. Umanskyi helped Yermak understand the schemes of key agencies that fill the state budget. In particular, he was supposed to push the topic of VAT evasion worth UAH 5 billion, which led to the creation of a temporary investigative commission on customs and the dismissal by Prime Minister Denys Shmyhal of the head of the tax service and the head of customs.
After that, Umanskyi fell out of context, but on November 12 he returned, announcing his dismissal from the Presidential Office. And a day later, on his Facebook page, Ihor Umanskyi posted about the “Great Construction”, corruption, and the embezzlement of billions from the COVID fund by a certain “road cartel” through Ukravtodor.
According to Umanskyi, from the very start of the “Great Construction”, changes were made to the requirements for tender documentation. Only six companies or the “cartel” meet the new requirements and win the main tenders. “But, if you look closely, these companies do not always build roads themselves, but resell contracts to subcontractors with a 30-40% discount,” Umanskyi writes.
As Umanskyi calculated, the “discount” on all tenders won by these companies amounted to about UAH 36 billion — and it was exactly this amount that Ukravtodor additionally received from the COVID-19 fund for the “Great Construction”. For clarity, Umanskyi drew a scheme of embezzling money from the COVID fund. Whether anti-corruption bodies will be interested in Umanskyi’s data or not — we will see in the near future.
But in fact, Yermak’s former adviser only highlighted a problem that the media and experts have been talking about for a long time. Thanks to the actions of many people from Zelenskyy’s circle, the “Great Construction” may turn into one big minus instead of pluses in the government’s piggy bank.
The PR strategy of the program was failed by Deputy Head of the Presidential Office Kyrylo Tymoshenko, who heads the council for the implementation of the “Great Construction”, and Andriy Yermak’s adviser Mykhailo Podolyak, who was recently given the authority to promote and supervise almost all areas and even tell government ministers what and where they need to speak.
Many social infrastructure facilities from the “Great Construction” program, for which the Ministry of Regional Development and Minister Oleksiy Chernyshov are responsible, will become long-term construction projects.
If we dig into Ukravtodor headed by Oleksandr Kubrakov, then scandalous tenders will surface, which were “designed” by Kubrakov’s former adviser, and now Kyrylo Tymoshenko’s assistant Yuriy Holyk.
And while Chernyshov’s Ministry of Regional Development reports 89% readiness of the “Great Construction” facilities, an analysis of the data on the official website of the program says that overall readiness is only 64%. It seems that the above-mentioned officials are misleading not only society, but also personally President Volodymyr Zelenskyy. Interestingly, many of them have direct connections with oligarch Ihor Kolomoiskyi. And the “Great Construction” is already called “Great Theft” among the people. Let’s try to understand the details.
Who is responsible for what
In June, the Coordination Council of the “Great Construction” was created, headed by Kyrylo Tymoshenko. It included the mentioned Oleksiy Chernyshov and Mykhailo Podolyak, as well as Minister of Infrastructure Vladyslav Krykliy and many others. At the same time, the unofficial curators of the “Great Construction” were Tymoshenko and Podolyak, acting on behalf of Yermak, who stands at the top of the entire pyramid.
Kyrylo Tymoshenko personally took on the roads and regularly traveled around the regions together with the head of Ukravtodor Oleksandr Kubrakov, promoting work on the “Great Construction” facilities. Yuriy Holyk, former adviser to Prime Minister Oleksiy Honcharuk, helps him with road issues. Until April, Holyk was an adviser to Kubrakov, but now he has moved up — becoming Tymoshenko’s assistant. Holyk is known for his close ties with former Dnipropetrovsk Governor Valentyn Reznichenko. He also dealt with road issues there. Judging by everything, it is Holyk who is the main architect of everything that is happening behind the scenes in the “Great Construction”.
Who builds our roads
Ihor Umanskyi speaks of a “road cartel” of six companies that win “juicy tenders”. If we study the “Great Construction” projects, the so-called “favorite trio” stands out the most: Avtomahistral-Pivden, Rostdorstroi, Onur. Companies are often spoiled with “additional purchases”, as in the case of Avtomahistral-Pivden in Kharkiv region on the section of the R-51 highway “Merefa — Lozova — Pavlohrad” worth UAH 204 million. Or they turn a blind eye to failed contracts, as in the case of Onur in Zaporizhzhya region, where the company did not meet the deadlines for repairing the N-30 highway “Vasylivka — Berdyansk”, failing to complete the work by March 31, 2020. Despite this, an additional agreement was signed with Onur, according to which the contract value was reduced to UAH 536 million, and the deadlines for the work were never agreed upon.
There are many such examples. And there is one interesting trend: Minister of Community and Territorial Development Oleksiy Chernyshov is also connected with Yuriy Holyk — they often go to sites together, promote themselves and increase the importance of individual sections of the “Great Construction”.
On the sites where Holyk and Chernyshov visit, interesting tenders are subsequently “cut”. They are usually won by representatives of the “road cartel”, to use Umanskyi’s words.
For example, a publication appeared on the “Great Construction” website dated August 3, 2020, which in particular stated that Minister Chernyshov visited Kherson region and inspected the work site on the M-14 highway. The first tender this year for work on the M-14 highway took place on August 7, 2020. The expected cost was UAH 33.5 million. The winner was the Vinnytsia company MEGO LTD, which offered a price of UAH 25.4 million. It must complete its section of work by December 31, 2021. On August 26, another tender was held on this M-14 road — for 4 lots. The contract value — UAH 145 million, the winner — Rostdorstroi, aka Rost. And on October 5, a tender was held for the overhaul of the M-14 highway on the section 604 km — 619 km. The work must be completed by October 31, 2021. The expected cost was UAH 483 million, our familiar company Onur won, offering a price of UAH 385 million.
And on November 2, the same road service in Luhansk region announced a new tender on the N-26 highway for UAH 165.8 million. The auction is scheduled for December 3, 2020.
It turns out that this year they will not have time to repair the highway itself, but they will be able to spend the budget. Spending on the “Great Construction” is planned to be reduced by 24% next year, hence the noticeable rush of Ukravtodor, the Ministry of Regional Development and others in holding tenders for this year’s facilities.
And although the Presidential Office refutes Umanskyi’s accusations, information that the “cartel” may be paying a percentage of tenders to people responsible for the “Great Construction” requires verification by law enforcement and anti-corruption officials.
Long-term construction projects with a beautiful sign
There are many examples of “Great Construction” facilities that may become long-term construction projects. This applies to both roads and social facilities.
Head of the Ministry of Regional Development Oleksiy Chernyshov calls the presidential program “Great Construction” a priority for the ministry. But one cannot say the same about the readiness of the facilities for which Chernyshov is responsible.
Some specific examples from the “Great Construction” website.
Project — reconstruction of stadiums of schools No. 194 and No. 252 in Kyiv. Planned completion date of work — December 31, 2020, declared degree of readiness for work — 44%. (Overall level of readiness of facilities in the city — 64%).
Project — reconstruction of a gymnasium in the city of Konotop, Sumy region. UAH 6 million was allocated from the state budget, UAH 6.6 million from the local budget. Planned completion date of work — December 31, 2020, declared degree of readiness for work — 54%. (Overall level of readiness of facilities in the region — 37%).
Project — Zhytomyr region, reconstruction of unfinished construction into a kindergarten in the village of Chopovychi, Malyn district. The state budget allocated UAH 11.7 million, the local budget — UAH 1.3 million. Planned completion date of work — December 31, 2020, declared degree of readiness — 35%. (Overall level of readiness of facilities in the region — 63%).
There are enough similar examples in every region. At the same time, Chernyshov claims 89% readiness of facilities, which is fundamentally untrue. In words, everything is fine with him, but in reality — a complete failure.
In addition to unfinished construction on site, dishonest officials are caught who “whitewash” contractors for not preventing participation in tenders of the “Great Construction” for social facilities. This happened in Zakarpattia, where a kindergarten was the “goods”. Similar kickbacks may end up in the black cash register of those responsible for the “Great Construction” and in the Ministry of Regional Development.
Who is connected with whom
In the failure that the “Great Construction” program is approaching, a political subtext is clearly visible.
It is beneficial for oligarch Ihor Kolomoiskyi to rock the “Great Construction” today. By discrediting the presidential program, he hits directly at Volodymyr Zelenskyy, who wants to weaken the oligarch’s influence on himself and the work of state bodies.
Kolomoiskyi is helped to discredit the “Great Construction” program by people connected with him. Head of the Ministry of Regional Development Oleksiy Chernyshov is one of them. He has long been associated with close relations with the Privat group. Last year, Chernyshov headed the Kyiv Regional State Administration after an “interview” with oligarch Kolomoiskyi. It is appropriate to recall here that infrastructure facilities for which Chernyshov is responsible are not delivered on time.
It is also no coincidence that Ihor Umanskyi, who is also associated with Kolomoiskyi, spoke about corruption in the “Great Construction”. That is, his attack on the “Great Construction” today may also be part of Kolomoiskyi’s game. Therefore, Umanskyi does not name specific names, otherwise he would have to mention Chernyshov, who is connected with Kolomoiskyi, and this is not according to the script.
Andriy Yermak himself is clearly preparing a springboard for a future political career without Zelenskyy, but with Privat. According to sources from the Presidential Office, Minister Chernyshov found common ground with Yermak, including thanks to the “Great Construction”. Thus, Yermak becomes beneficial to the oligarchs, using the president’s trust. By the way, Yermak recently gave an interview to Natalia Moseichuk on Kolomoiskyi’s 1+1 and received a “warm bath” there instead of sharp questions.
And all these palace intrigues hit the rating of President Zelenskyy, as well as the Servant of the People party. In fact, Zelenskyy’s circle is setting him up for their own goals. And the “Great Construction” has real problems.
While Yermak still finds the right words so that Zelenskyy does not have questions about the “Great Construction”, but if Volodymyr Oleksandrovych himself does not ask them now, then soon he himself will have to look for answers to them. Because Ukrainians have never seen such “Great Harm”, which kills two birds with one stone at once — billions are spent and the president’s authority is undermined.
