28.06.2024 Kyiv Utility scams

How a Turkish company, with the assistance of Klitschko, seized billions from Kyiv’s budget

Amid the collapse of the Metro and the collapse of the pedestrian part of the bridge on Air Force Avenue in Kyiv, Kyivavtodor Corporation, which is part of the executive body of the Kyiv City Council, decided to carry out emergency repairs to the Metro Bridge, the oldest of 6 road bridges across the Dnipro River, allocating UAH 2 billion for such work.

As a reminder, in 2023, the Kyiv City State Administration, citing estimates by European experts, said that rebuilding the Metro Bridge would cost at least €500 million. And in January of this year, the former head of the Kyiv Metro, Viktor Braginsky, said that the Metro had inspected the bridge and found it safe for passenger transportation.

So what’s the catch? And why did the local authorities, including Klitschko, and Kyivavtodor CEO Fedorenko decide to carry out the repairs anyway? Do they not trust Braginsky?

In the end, the tender for the restoration of Kyiv’s Metro bridge was awarded to the scandalous Turkish company Onur, which is ready to carry out repair work for UAH 1 billion 995 million.

“Onur” was the only participant in the large-scale procurement, the deadline for submitting proposals for which ended on June 17.

What’s so surprising?

“Onur” is often the only bidder for road repairs not only in Kyiv but throughout Ukraine. That is why it often finds itself at the center of scandals.

For example, in 2017, the National Police suspected Onur of poor-quality repairs of Beresteyskoho (Peremohy) Avenue and a number of other highways in Kyiv. According to the investigation, the suspicion concerned the use of a scheme to inflate the cost of construction work.

The company has also repeatedly been in the spotlight for questionable tenders, construction delays, and corruption schemes in other regions of the country.

In addition, Onur is also involved in international corruption scandals

How Onur monopolized the road construction market

The road construction market in Ukraine is divided between two giant companies: Avtomagistral-Pivden (Ukraine) and Onur Group (Turkey).

These two effectively controlled all the important decisions on tenders of the former Ukravtodor (now the State Road Agency of Ukraine). Other market participants were either not allowed to participate in tenders or acted as formal participants.

When Slavomir Novak was head of the State Road Agency of Ukraine, Onur Group won absolutely every tender of Ukravtodor. According to various experts, the Turkish company was involved in kickback schemes, which is why it became a favorite of the then board.

Operational contacts between the Onur Group and Novak were carried out through Vira Bichuya and Jacek Paliukh, who agreed on the terms of cooperation. In particular, it was agreed that the tender for the EBRD and EIB’s “pan-European road” project of the M-03 Kyiv-Kharkiv-Dovzhanskyi highway worth $175.6 million would be won on condition that Novak’s bribe be transferred to a separate company. The bribe was in the form of a joint venture called Onur Polska, co-founded by Novak and Paliukha.

Onur Group did win the tender for the construction of this road (the contract was signed on May 21, 2018).

Later, through intergovernmental cooperation between Ukraine and Poland, Novak’s schemes were exposed, and the official himself was suspected of three episodes at once – for taking bribes from the Ukrainian company Altcom, the Turkish company Onur, and the Polish company ECM Group. His offices and residence were searched, and all financial documents and records were seized.

Onur Group Ukraine then confirmed that law enforcement agencies were conducting searches in the criminal case against the former head of Ukravtodor, Slavomir Novak. The company’s press service reported this, promising to provide more detailed information after the investigation is completed.

“Onur Group Ukraine will facilitate the investigation and provide full access to information that will facilitate the investigation with the participation of NABU, SAPO and the Central Anti-Corruption Bureau of Poland into the activities of the former head of Ukravtodor,” the statement said.

However, as we can see, the international scandal did not affect the company’s activities in any way. Onur continued to actively receive contracts under the new director of Ukravtodor, Oleksandr Kubrakov.

Now the Turkish company’s bribery hands have reached the capital.

Did Mayor Klitschko and Kyivavtodor decide to pocket UAH 2 billion of the budget? When can we expect another subway collapse and bridge collapse?

Did you witness a crime?

Let us know about it. We will help protect the violated rights!

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