Ukraine: realities | «The Weekly Five»: 13.11 – 19.11

Fakes about corruption in Ukraine in "American publication"

On November 15, 2023, in Ukraine, there was a public outcry over a number of Telegram channels and websites that spread information  from «American publication» The American Insider. The article by Stephen Fuchs accuses corruption in the state-owned companies «Ukrenergo» and «Ukrzaliznytsia» and criticizes their leaders, Volodymyr Kudrytsky and Yevhen Lyashchenko.

According to The American Insider, the National Anti-Corruption Bureau revealed major violations in Ukrzaliznytsia, including the embezzlement of $20 million in state procurement. Lyashchenko, the head of the company, receives a high non-market salary incompatible with the company's situation. Similar accusations concern Ukrenergo, where the director Volodymyr Kudrytsky is also accused of abuse and connections with Russia.

However, it is important to note that the information presented in The American Insider raised doubts. Babel correspondent Alexander Myasischev called the article manipulation, and the «American publication» raised doubts about its authenticity, resembling a Russian fake.

Nevertheless, the details of the article turned out to be controversial, as the specified dates and facts did not correspond to the real situation. For example, an interview with NABU head Semen Krivonos indicated that abuses in Ukrzaliznytsia occurred in 2023, but this turned out to be untrue, as these events happened earlier.

In addition, The American Insider itself became the subject of doubt, as it is a new anonymous site that mimics American media. The lack of specific data about the editorial board and owners underscores its dubiousness and possible disinformation.

Thus, the story about corruption in Ukrainian state companies requires careful analysis and verification from reliable sources before drawing any conclusions.

 

Ukrainian Defense Minister equates corruption to terrorism

Ukrainian Defense Minister Rustem Umerov has stated his intention to eradicate the corrupt component and regards corruption as equivalent to terrorism.

«Where and what do we, as the Ministry of Defense, want to achieve? Firstly, it is the corrupt component. For me, understanding 'corruption' or war profiteering is something that needs to be stopped. I didn't start it, but I want to finish it. Secondly, we are currently building early contracts for one year, three years, ten years. Why are we doing this? To meet urgent needs and address important matters», he said at the annual general meeting of the European Business Association.

Umerov also emphasized that he sees corruption «as terrorism».

 

A company linked to the Member of Parliament Igor Palitsya sold land under a hotel in Lutsk for a song.

The Limited Liability Company «GRAD INVEST REAL ESTATE», associated with the People's Deputy Igor Palitsa, sold a land plot without bidding, where the premises of the old regional hotel «Krucha» is located. The relevant decision was made during the session of the Volyn Regional Council on Thursday, November 16.

The total area of the land plot is 0.95 hectares, designated for the construction and maintenance of health and social care facilities. The value of the land, as assessed by the regional council, is nearly UAH 7,152,000. However, before the session, activist Serhiy Ryzhkov stated that such a price is significantly undervalued and should actually be around UAH 70 million, which is 10 times more.

«The amount of the advance payment in the amount of UAH 699,010.00, paid by the limited liability company 'GRAD INVEST REAL ESTATE' according to the advance payment agreement towards the payment of the land plot price from November 10, 2023, is credited to the land plot sale price», the decision states.

One of the deputies noted that an auction or open bidding could have been conducted to generate additional revenue for the region from this plot. However, according to Deputy Volodymyr Bondar, this plot could only be sold or leased to the owner of the property on that plot. And the owner of the building is precisely «GRAD INVEST REAL ESTATE».

As reported by the media  outlet «Syla Pravdy», the property of the former regional hotel «Kruta» is not only a political but also a business interest of one of the most influential and wealthiest politicians in our region, Igor Palitsa.

It is precisely with his name that the LLC «Grad Invest Real Estate» is associated. Officially, Igor Khmelov and Andriy Shabayev are listed as the beneficiaries of the company on paper. Igor Khmelov is referred to as one of the top managers of the «Privat» group. Together with Shabayev, they are owners and managers of several other companies associated with Dnipropetrovsk oligarch Igor Kolomoisky and his business partner in Volyn, Igor Palitsa.

 

The National Anti-Corruption Bureau is investigating the alleged misappropriation of funds at the municipal rehabilitation sanatorium «Gloria» of the Zaporizhzhia Regional Council.

The investigation focuses on a suspected conspiracy involving officials from the Zaporizhzhia Regional Council, who, in collaboration with the staff of the sanatorium, may have misused funds during the procurement of medical equipment at an inflated cost. The Higher Anti-Corruption Court and the Appeals Chamber of the HACC have issued relevant resolutions.

According to the investigative authorities, officials of the "Gloria" sanatorium, in collusion with Zaporizhzhia Regional Council officials, LLC «Medgarant», and LLC «Cimmer Medicine System Ukraine», could have misappropriated funds during the purchase of medical equipment for the health resort, the value of which may have been inflated. Moreover, there was allegedly no real need or necessity for the procurement. As part of this case, NABU and SAP conducted a series of searches at the implicated entities, including the premises of LLC «Medgarant». Detectives seized a range of equipment and information carriers subject to arrest, recognized as material evidence.

 

Survey: Ukrainians consider corruption the biggest problem after the war

According to Ukrainians, the most significant problem in Ukraine, aside from the war, is corruption, followed by low salaries and pensions, according to the survey results from the Kyiv International Institute of Sociology (KIIS).

«While war is undoubtedly the biggest problem for Ukraine and Ukrainians, when asked about the problems beyond the war that concern Ukrainians the most, 63% mention corruption»,noted the survey authors.

The second top problem is low salaries and pensions at 46%. Other important issues include high utility tariffs at 26%, demographic risks at 22%, and unemployment at 20%.

54% of respondents believe that the new anti-corruption bodies created after 2014 should primarily combat corruption. Additionally, a significant number of respondents mention the president/president's office (43%) and the «old» law enforcement agencies, such as the police, SBU, and the prosecutor's office.

«Corruption remains a powerful trigger for Ukrainians, and besides victory, Ukrainians want an effective fight against corruption. The results of this survey once again confirm the attention that the population pays to corruption», said Anton Hrushetskyi, the executive director of KIIS.

He noted that the population is less concerned about their own well-being than about injustice due to corruption.

 «It is worth adding that, according to the KIIS survey for the Advisory Mission of the European Union, 68% of Ukrainians believe that to achieve justice, it is necessary to give a bribe», added Hrushetskyi.

 

The project «Ukraine: realities» is implemented by the News agency «Konkurent» together with the Civic Movement «SVIDOMI» in English for readers from other countries to tell the stories of people who survived the horrors of the Russian occupation.

Проєкт «Ukraine: realities» реалізовується Інформаційним агентством «Конкурент» спільно з Громадянським Рухом «СВІДОМІ» на англійській мові для читачів з інших країн аби розповісти історії людей, які пережили жахи російської окупації.