350,000 UAH were “laundered” on pavement edges reconstruction

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Bureau of policy analysis extends the territory of its research. After studies in Poltava, Sumy and Kharkov regions, now it’s turn of the Donetsk region.

As we know from our experience, dishonest organizers of government purchases try to hide thoroughly results of their “work”. However, some machinations “lie on the surface”. Thus we could easily find fraud of municipal employees of Donetsk.

A Utility Enterprise “Road repair-construction department” in Donetsk (Number in the list of company registers: 05449153; address: 1, 50-years of SSSR Str.) enounced open tender for purchasing concrete edge stone БР 100.30.18 (in other words, pavement curb) - 6000 running meters. The purchase was made at the expanse of the Donetsk city budget. This information was published on the official web-site «Bulletin of government purchases» № 41 (784) from 27.05.2013, number of the advertisement: 127860. The tender was set for 05.07.2013.

There were only (attention!) 2 participants ar the tender. Either there are no other enterprises in the Donetsk region (the biggest industrial region of Ukraine) that are able to participate in the tender; or during the economy crises in our country producers do not need any income.

 Full name of the tender participant, ID, contacts

Tender price

LLC «Sparta» 23977817

Ukraine, Donetsk, Svitloho Shlyashu Str., 1, 83029.

Tel./fax: (062) 201-85-42

  795 000.00 UAH with taxes

LLC «Donkommunstroy»


Ukraine, Donetsk, Livoberezhna Str.,11,


Tel./fax: ( 062)201-86-50

750 000.00 UAH with taxes

The above table shows that the LLC «Donkommunstroy» won the tender offering the lower price (45,000 UAH cheaper). Its tender price was 750,000 UAH that is 125 UAH for one edge stone.

To be sure that we had counted correctly, we send the information request to the tender organizers. Surprisingly quickly and even without any help of the prosecutor’s office, we got the answer. We won’t publish all pages of the letter. The most interesting is the page that confirms price in 125 UAH for one concrete edge stone БР 100.30.18:

Sizes of this kind of stone are 100 Х 30 Х 18 (cm). Honestly, I am personally not ready to pay 125 UAH (1/8 of the average pension in Ukraine) for a piece of concrete. So I decided to find this stone at appropriate price in the Internet. It occurred that prices in the net vary from 56 (!) to 107 UAH.  

Why (and how) does a utility enterprise pay double price for a piece of concrete? Why do the law enforcement bodies do nothing about that?

By the way, there are few other interesting facts about the tender participants. According to the documents, LLC “Sparta” and  LLC “Donkommunstroy” are registered at the different addresses. This is proved by SOE “Information and resource center”.

But on other web-sites we find different address of LLC “Donkommunstroy” (herehere and here): Donetsk, Svitloho Shlyashu Str., 1. Attention, please: the enterprise that lost the tender is registered at this very address too.

Now it is obvious that in fact only one enterprise, not two, participated in the tender. Signs of corruption are revealed.

Losses of the Donetsk city budget because of only one machination are over 350,000 UAH.

We wonder who indeed got the laundered money. But it is rather task for the law enforcement bodies to answer all these questions.



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