Ukraine: realities | «The Weekly Five»: 20.11 – 26.11

Money laundering of 10 billion: Former head of the State Property Fund Sennychenko faces renewed suspicion

The National Anti-Corruption Bureau has renewed suspicion against the former head of the State Property Fund, Dmytro Sennychenko, now accusing him of laundering 10 billion hryvnias. NABU announced this on November 24.

Sennychenko is considered the leader and organizer in this case. In March 2023, NABU revealed a criminal organization headed by the former head of the State Property Fund, which embezzled over 500 million hryvnias from state enterprises from 2019 to 2021.

According to NABU, the former head of the State Property Fund, Dmytro Sennychenko, allegedly refused multimillion bribes several times to create an image of an anti-corruption fighter. In reality, he was eliminating competitors through this facade.

NABU Director Semen Kryvonos stated in an interview with Ukrinform on June 21 that international search and possible extradition to Ukraine are being considered for Sennychenko.

Rivne Regional Council deputy illegally enriched by millions of dollars

Employees of the State Bureau of Investigations (DBR) have discovered undeclared wealth in the possession of a deputy of the Rivne Regional Council, who also serves as the deputy head of the Polissky Forest Office of the State Forest Resources Agency «Forests of Ukraine», amounting to millions of dollars.

The DBR notes that until February 2023, the individual in question held the position of the head of the Rivne Regional Department of Forestry and Hunting Management. Later, he assumed one of the leading positions in the Polissky Forest Office «Forests of Ukraine», established on its basis. According to media reports, this concerns Vitaliy Sukhovych.

«While working in the executive branch and local self-government bodies, he managed to illegally enrich himself by millions of dollars. As part of the open criminal investigation, searches were conducted, including at his residence and the deputy's workplace, as well as the homes of his family members. During the investigative actions, over $4 million in various currencies were identified and seized in cash», – stated the DBR.

Law enforcement officers also found three luxury cars, including AUDI Q8, MERCEDES-BENZ GLE 350E, BMW X5, valuables, and expensive watches, including the elite brand Patek Philippe. Golden coins, gold bars, 2 pistols, and an AK-47 with 16 magazines and ammunition were also discovered.

In addition, the deputy owned four land plots in Rivne, where he was building cottages. The plots were registered in the names of nominal individuals controlled by the «elected official».

The suspect has been informed of the suspicion under the article of illegal enrichment (Article 368-5 of the Criminal Code of Ukraine). The sanction of the article provides for imprisonment for up to 10 years. A letter has also been sent to the National Anti-Corruption Agency to monitor the lifestyle of the suspect and his family.

Court arrests property of MP Dubinsky, his mother, and ex-wife, including 23 apartments in Kyiv

The Pechersk District Court of Kyiv has imposed an arrest on the property of the suspect in state treason, Member of Parliament Oleksandr Dubinsky, as well as the property of his mother and former wife.

«Based on the materials of the Bureau, the investigating judge has imposed an arrest on the property of the current Member of Parliament, part of which is registered in his mother's and ex-wife's names. In total, 39 real estate objects have been arrested, including 23 apartments in the capital, 8 land plots, two residential houses in Kyiv and the region, and 15 cars».

The statement does not mention the name of the individual involved, but according to media reports, it refers to Dubinsky. According to the court ruling dated November 10, during the investigation of the criminal case, the State Bureau of Investigations obtained information that the current MP, his mother, and wife had become owners of a large number of apartments, cars, two houses, and seventy hectares of land, with a total value of about two and a half million dollars over the past few years.

Official incomes of the suspect and his close relatives did not justify the acquisition of such a significant amount of property. DBR investigators also found that the MP, his mother, and his now ex-wife conducted risky financial transactions involving large sums, including cash, from 2008 to 2023.

These transactions significantly exceeded their officially declared incomes, suggesting the legalization of funds through the family's acquisition of highly liquid assets and depositing money into accounts.

How a company associated with Igor Palitsa obtained a hectare of land and a hotel in Lutsk

A company linked to People's Deputy Igor Palitsya has acquired another hectare of land in Lutsk, where the former regional committee hotel for «VIPs» - «Krucha» stands. The Volyn Regional Council decided to "gift" this lucrative piece almost unanimously on November 16, without an auction.

While serving as the head of the Volyn Regional Council, Igor Palitsa claimed that «Krucha» needed to be saved because, according to him, it is unknown where it might end up in a few years. As we can see, it ended up in the hands of the company associated with Palitsa. At that time, the council head suggested that a multi-storey building might be erected on the site, with 10-12% of the apartments belonging to the region for some benefit. However, things did not go as expected.

«If it's a building, the regional council will get 10-12% of the apartments, which will go to doctors, teachers, ATO participants, or Afghan veterans who are in line at the regional or city level», – said Igor Palitsa.

This land, almost a hectare in size, located not far from the regional council building and the center of Lutsk, was valued at a mere 7 million 151 thousand hryvnias. It was acquired by the LLC «Grand Invest Real Estate». Interestingly, this company had purchased the buildings of the former hotel "Krucha" several years ago. Remember the name of the company; we'll come back to it.

How did the hotel «Krucha» end up in Palitsa's ownership?

Let's go back a few years. In late May 2020, the Volyn Regional Council officially announced that it wanted to sell the premises of the former regional committee hotel «Krucha» at an auction. The starting price was 3 million 876 thousand hryvnias. The relevant decision on the privatization was brought to the session of the Volyn Regional Council and signed by then-chairwoman Iryna Vakhovych.

Here's the interesting part: the document stated that «Krucha» was put up for an «auction without conditions». In other words, the building was sold without requiring any commitments from the buyer regarding restoration, reconstruction, improvement, or the construction of another building. It was sold just to be sold.

Electronic auctions took place on November 10, 2021, with only two participants - LLC «La Brook» and the familiar LLC «Grand Invest Real Estate», which won and purchased the hotel for over 4 million 238 thousand hryvnias. Despite the fact that the object was put up for sale during Irina Vakhovych's tenure, the auction results were signed by the current chairman of the Volyn Regional Council, Hryhoriy Nedopad, a member of the political party «For the Future». The same party led by Igor Palitsa, a Ukrainian politician and one of the closest associates of oligarch Igor Kolomoisky.

Palitsa got the hotel, and the matter of «privatization» of the land under it didn't take long

On March 16, 2023, at a session, the deputies of the Volyn Regional Council decided to lease the land near the already purchased hotel «Krucha» by LLC «Grand Invest Real Estate» to rent for 49 years. The rent for the land for a year was set at only 1,657 hryvnias. And who got this land lease? Of course, the same company, «Grand Invest Real Estate».

They concluded this deal on November 16, 2023. The land plot was sold for a little over 7 million hryvnias. As you already know, the buyer was LLC «Grand Invest Real Estate». So, to summarize: in 2021, the hotel building was sold; in March 2023, the land under the building was leased, and in November 2023, the same land was sold. And all of this went into the same hands. Quickly, conveniently, and without unnecessary questions, doubts, discussions, or even conscience pangs.

What is LLC «Grand Invest Real Estate», and why is it associated with Palitsa?

We've mentioned LLC «Grand Invest Real Estate» several times, so let's delve into the history of its founding. According to Insider Media, LLC "Grand Invest Real Estate" was officially registered in Kyiv in 2009 with a statutory capital of 74,400 hryvnias. Its main activity is buying and selling real estate and leasing. The company is quite well-known in Ukraine, owning many large reconstructed shopping centers in different cities. Including the Lutsk TSUM, which is associated with MP Igor Palitsa.

Officially, the beneficiaries of the company, so to speak, «on paper», are Igor Khmelov and Andriy Shabayev. Igor Khmelov was referred to as one of the top managers of the financial-industrial group «Privat». Together with Shabayev, they are owners and managers of several other companies associated with Dniprovskiy oligarch Igor Kolomoisky and his Volyn business partner Igor Palitsa.

By the way, according to Insider Media, the current chairman of the Volyn Regional Council, Hryhoriy Nedopad, who signed the auction result for the land lease under «Krucha» in 2015, worked as the director of LLC «Green Realty». Later, through Cypriot offshore companies, the same Igor Khmelov and Andriy Shabayev became the beneficial owners of this company.

«Krucha» handed over to Palitsa, but promised apartments were not received by Volyn residents

When Igor Palitsa was the head of the regional council, he already had his eye on a lucrative piece of land. He first mentioned «Krucha» on May 16, 2019, in a program on his own channel. At that time, the politician suggested that, for example, a multi-story building could be erected on the site of the former regional committee hotel in Lutsk. He also suggested that if it were a building, the regional council should receive 10-12% of the apartments for the benefit of the community.

These «noble intentions» of Palitsa likely marked the beginning of the countdown to the direct acquisition of the hotel building and land. However, as we can see, during the land manipulations, auctions, and sales, the regional council did not impose any conditions. The talk about apartments for Volyn residents was nowhere to be found. Whether views changed or the mood is unclear.

«It was on an enterprise that went bankrupt, and it's unknown where that 'Krucha' would end up. I was there a long time ago; I looked at photos when it was transferred to the balance of Volynprirodroesurs. Nothing is happening there; it's preserved. The experts of the regional council need to think about what kind of object can be built there: either a residential building or some other complex. If it's a building, the regional council will get 10-12% of the apartments», – said Palitsa.

So where is the benefit for the region in this decision that Palitsa spoke about? Or is this benefit not for ordinary Volyn residents at all? Most deputies, who practically unanimously supported the sale of a priceless hectare of land near the center of Lutsk, could at least recall Palitsa's words and ask the buyer what will grow on that territory. It's hard to say what guided them, but «Krucha» did go under the hammer. However, there were those who opposed and did not vote for the sale. Deputy Yulia Vusenko explained that something was wrong with this story.

«Who made the decision that this land, which could have been sold at an auction and brought much more money to the community, should be sold to the only contender?» – Vusenko said.

There were also those who defended this scheme of acquiring a whole hectare of Lutsk land. Deputy Viktor Galan-Vlashchuk claimed that there were only two options for resolving the issue with this land - either lease or sale. Surprisingly, they settled on the latter.

«A person bought the premises; it was the fifth convocation of the regional council. Now the person wants to formalize the land. Under that building is the area, and we have to help formalize this area. The person can refuse part of the area, but he didn't. There are two legal ways: either lease or purchase. Today, we have come to the purchase of this land», – assured Galan-Vlashchuk.

Since the first mention of «Krucha» by Igor Palitsa to the sale of both the building and the territories, only a few years have passed. So to speak, the plan worked, and ultimately, for relatively meager money, another lucrative piece in Lutsk was successfully acquired. Surprisingly, the regional council agreed to everything.

In the end, «Krucha» is now owned by LLC «Grand Invest Real Estate». How they will manage the land and property, what they will build or leave as is, is unknown. It is also unknown what benefit Volyn and ordinary Volyn residents received from such a sale at a giveaway price without any demands.

The Higher Anti-Corruption Court (HACC) has arrested a suspect in organizing a scheme to misappropriate funds from the State Special Communications Service.

The HACC has chosen a preventive measure for the organizer of the scheme to detain him with an alternative of posting a bail of 50 million UAH.

It is noted that, at the request of the prosecutor of the Specialized Anti-Corruption Prosecutor's Office (SAPO), on November 22, the investigative judge of the HACC chose a preventive measure for the person whom the investigation considers the organizer of the scheme to misappropriate state funds amounting to over 62 million UAH during the procurement of information technology tools for the creation of a secure data registry system by the State Special Communications Service.

Media reports suggest that the individual in question is entrepreneur Roman Koval, who is specifically assigned the role of the organizer. Koval was a co-owner of the companies LLC "2K Consulting" and JSC "Atlas". The National Anti-Corruption Bureau (NABU) and SAPO requested Koval's arrest with an alternative of a 100 million UAH bail.

«The court partially granted the motion of NABU detectives, agreed upon by the SAPO prosecutor, and applied a preventive measure to the mentioned suspect in the form of detention with an alternative of posting a bail of 50 million UAH and imposition of procedural obligations in case of its payment», – the statement says.

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.