Mykolaiv Regional State Administration entrusted the restoration of Bashtanska Hospital to a company with a criminal past

The reconstruction of the destroyed Bashtansk Multi-Profile Hospital in Mykolaiv Oblast was supposed to be an example of effective work by the authorities and contractors during the war. Instead, the story turned into another corruption scheme with multi-million overpayments and scandalous procurements.

In 2023–2024, the Mykolaiv Regional State Administration held four tenders for the reconstruction of hospital buildings with a total cost of UAH 345.5 million. All contracts were awarded to the same company, PIVDENBUD MYKOLAIV LTD, which had already appeared in criminal cases for embezzlement of budget funds and had been fined for anti-competitive conspiracy.

According to estimates, on these projects alone, the cost of work and materials was overstated by at least UAH 32.4 million, and in some cases by up to 86% above the market price. The scheme was simple: in the estimates, the concrete mix was estimated at over UAH 8,000 per cubic meter, while on the market it costs about UAH 5,000. Gas blocks - UAH 6,000 each instead of the average price of UAH 3,700. Even the transportation of soil was quoted one and a half times more expensive than the real cost.

Adding to the cynicism of the situation is the fact that the budget included the purchase of equipment from the Chinese brand Hikvision, which the NACP officially included in the list of international sponsors of the war. And all this was done under the slogan of “restoring critical infrastructure.”

Even more telling is the fact that after the violations were discovered, contracts were terminated, and the State Audit Service made comments, the same officials again awarded contracts to the same contractors in 2024. Neither the results of the audits nor the appeals to the NABU affected the course of the tenders.

This story shows that even in times of war and an urgent need to restore medical facilities, for the “chosen” firms, destruction can become a source of stable and highly profitable business.

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