The Kyivavtodor Corporation, which is under the jurisdiction of the Kyiv City Council, has found itself in yet another scandal. The first major procurement this year has raised questions about transparency and economic feasibility.
This concerns the purchase of 12 dump trucks with equipment for pothole repair for the amount of UAH 145.44 million. The tender was won by LLC “NPO NT “Budshlyakhmash”, whose owner is Stanislav Huyvan, a former employee of the Ministry of Economy. It is worth noting that there was no other participant in the tender. One of the potential competitors even asked to change the requirements in order to expand the circle of participants, but Kyivavtodor refused, explaining this by the “interests of the enterprise”.
This is not the first such case. In November last year, Budshlyakhmash was involved in criminal proceedings after Kyivavtodor purchased a garbage truck and 26 dump trucks at inflated prices. Then, instead of the market price of UAH 3.6 million, more than UAH 5 million was paid for the garbage truck, and the cost of the dump trucks reached UAH 9.04 million per unit, compared to the market average of UAH 8 million.
The Guivan family controls a whole group of companies: LLC "TD "Budshlyakhmash" and LLC "Spetsbudmash", which often hold tenders among themselves or through satellite structures. The equipment offered in the tenders is manufactured at the Brovary plant "Spetsbudmash", also associated with this business group.
This is not the first time Kyivavtodor has come under suspicion due to the lack of competition. The most high-profile example is the multi-billion tender for the repair of the Metro bridge in Kyiv, which was awarded to the Turkish company Onur. This company consistently wins capital contracts without competitors and has a number of criminal suspicions, in particular regarding overstating the cost of work.
Thus, Kyivavtodor's procurements once again raise issues of transparency and possible corruption risks.
