Privatization according to the “European standards”. Experience of the Sumy city :)

Medunytsya Oleg

Expert on budget and decentralization. Member of the Verkhovna Rada Committee on Budget of the 7th-8th convocations. He participated in the development and implementation of budget reform, administrative-territorial reform and…


08 July 2013

I have described a detailed scheme of privatization of the public property (a premise in Voskresenska  Str., 6; 81 sqm) with the help of the NGO “Art world”. This organization rented the premise but in fact the room was occupied by a firm-subcontractor of the “Sumyzhytlo” (a utility responsible for housing in the city), which provided legal survives. A head of this firm-subcontractor was an ex-employee of the Juridical Department of the Sumy city council.

An evil chance seldom comes alone. My assistants revealed that the same fraud was made to another premise. It is quite big too – about 80 sqm (this figure differs in the documents because the area was specified). This premise is located at the same address – Voskresenska Str., 6. This second premise was released on loan to the same ill-fated “Art world” (it is very convenient – the leaseholder did his best). But this time the shady dealers did not come in the spotlight, because the decision was not discussed at the special commission of the city council members. The “Sumyzhytlo” disposed of this premise till February, 4, 2013. This utility as a public service had right to release to loan the premise without any additional permissions of other city institutions. So the doubtful utility signed the rental agreement. They also send an official letter to the city council and helped the leaseholder to get the permission for repair work in the room.

As a result, 7 members (all who were present at the meeting) of the Commission on the Public Property voted for permission for repair work on December, 11, 2012.

But it failed. To privatize the premise, it had to be and it was transferred as a public property to the city council on February, 4. There was no other way for privatization.

And on July, 4 – after 5 months – the draft of decision about the privatization of both premises appeared on the mayor’s office web-site. The Sumy city council will consider this issue on July, 31.

The same thing happened to another “crossbreed” that is the head of the “Youth parliament” of the Party of regions Igor Babenko. His affair with public property was described in detail by experts of the Bureau of policy analysis.

In both situations there was used the same scheme: under the cover of the NGOs the “elite” of the city was stealing public premises. They rented rooms on preferential rate less than a year and then bought them out. That is an absolute fraud, stealing Sumy public property. It is significant, that these crimes started to be committed in the period when management of the “Sumyzhytlo” was from the mayor’s party “Home town”. Dear Hennadij Minayev, it’s not good! You promised that there would be an art gallery. And now there is neither gallery, nor premise. The second room is stolen too. Can you tell us who steals the rooms?

I remember how we were trying to start the Partnership Program between city authority and NGOs. This is the European experience: government orders a social project to NGOs, they fulfill the project. Executive bodies of the city council buried the Program. It died quietly somewhere in the corridors of the executive committee. Instead of really European practices, they just raised the EU-flag above the “village council office” and keep on stealing everything they can see.

To my mind, there is a crime syndicate. It commits crimes and steals Sumy public property under the cover of fake NGOs.

To stop these crimes and stealing public property, I’ll send a letter to the prosecutor’s office. That’s all I can, for now.