Shelter for Stepkivska gymnasium in Mykolaiv region to be repaired by defendant in embezzlement case

The contract for the reconstruction of a shelter in a village school was again awarded to a company without competitors. The company has previously been involved in criminal cases and investigations into embezzlement of budget funds.

This was reported by the Center for Public Investigations with reference to the Prozorro procurement system.

In early April, the Department of Urban Development of Mykolaiv Regional State Administration announced a tender for the overhaul of the radiation shelter at Stepkivska school. All construction work is scheduled to be completed by December 31, 2026. More than UAH 19 million has been allocated from the budget for the reconstruction of the shelter.

This is not the first attempt to find a contractor for this procurement. At the end of June, the program of economic and social development of Mykolaiv region for 2024 was amended to include the repair of the shelter of Stepkivska secondary school.

In September 2024, the Department of Urban Development announced a tender to find a contractor. During the tender, questions arose and a complaint was received.

On October 15, 2024, the State Audit Service of Ukraine decided to monitor the procurement. At that time, the company was waiting for a decision to sign the agreement, but the tender was canceled, and the reason, according to Prozorro, was a reduction in the cost of procurement of works.

Screenshot: Prozorro

Stepkivska gymnasium is a municipal institution of general secondary education that also includes an elementary school. Currently, 103 students study here, although the institution is designed for 392.

The repair of the shelter for the Stepkivska school was planned back in 2019, according to the decision of the Mykolaiv Regional Council of May 16, 2019, which extended the Program of Economic and Social Development of the region until the end of the same year. In November 2023, work resumed, but then everything stopped. The facility was financed by public funds, totaling UAH 12.8 million.

Screenshot: Mykolaiv Oblast Development Program

This time, too, the auction failed. Only one company, Hospodar-2, submitted its offer, which was 580 thousand hryvnias less than the expected purchase price, although the tender stated that the minimum price reduction should be 193 thousand hryvnias.

Screenshot: Prozorro

The company has repeatedly been the subject of journalistic investigations. In July last year, they received a contract for the construction of a shelter for the Bohdanivka Lyceum, also without competition, for 46 million.

Since 2016, the company has earned over UAH 200 million in public procurement. In March 2023, Hospodar 2 LLC was involved in criminal proceedings. This is stated in the decision of the Podil District Court of Kyiv. The case states that the company could have been involved in the embezzlement of budget funds.

In December last year, the Antimonopoly Committee began considering a case of possible violation of competition law by Gospodar-2 and VBK Alfa. The case was opened because of the tenders for the overhaul of buildings held in 2023-2024 by the Syniukhino-Brid village council and Mykolaiv district heating company.

Анна Бальчінос