How to make your business successful? Tons and tons of literature, multi-year courses at the world leading universities were spent in order to find an answer to this question. Still, there is no formula of real success found yet. But, as it seems, the Kharkiv official, Volodymyr Chumakov, knows how to succeed, how to earn lots of money, and, as the most important, how to spend these millions! A story of this lucky man of destiny is amazing. Let’s take a closer look at ingredients of his success.
Zigzag of Fortune
A story of Mr. Chumakov’s stunning success took its roots from the limited liability company “Parking+” involved in repairing of automobile roads. In 2007, he was a director and founder of this company. Would he only know that he becomes a founding father of the company with a budget of 1 billion UAH during the first 8 years and would build and repair all main roads in his hometown? We do not know. Nevertheless, sense of success, as it seems, is in his blood. Because in spring of 2010 our main hero did another shot and made a very successful career decision – took over the Construction Department and road building of Kharkiv City Council.
Actually, straight from this point, the golden era for his enterprise “Parking+” has began. This comapny gets all important contracts on building and repairing of automobile roads. According to the published minutes of contracts, available on z.texty.org.ua, from 2010 company has been granted contracts from city budget on 1,68 billion UAH in 131 deals.
A volume of deals increases every year. “According to data from an analytical website, from the moment of implementing of Prozorro system, June, 2016, limited liability company “Parking+” has made deals on public contracts for about 50 million UAH. This participant is a supplier only in Kharkiv region. It should be mentioned that employer is always the same – Kharkiv city council. “The participant has won contracts only through negotiating procedures and directly, in a case of lower level of price. Also it has taken part in one additional tender, but without result as for now. So employer found on their own those who will sign the contract and published report about that in Prozzoro, because he is obligates to do this accordingly to law” – an expert in public procurement of Transparency International Ukraine Mykhailo Nevdakha has commented.
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Trusted Friends
What are the supernatural forces that help the company to be so successful and won all important contracts with no participation in tender sales? Maybe, personal charisma and energy of the former co-founder? Has the department of road building strong ties with “Parking+”?
Let’s took a closer look. Since April 2010, Viacheslav Blinkin is the head and signator of “Parking+”. At the same time, the company was re-registered and owned by Halyna Davydova. She also was a co-founder of service cooperative “ZHBK “TRYUMF”, which has obtained a land plot with area of 1,68 hectare on Tulskyi alley in Kharkiv park near residence of the people’s deputy Mykhailo Dobkin from “Opposition block” into property without payment. Besides, Halyna Davydova is a co-founder of limited liability company “Franko” with Vitalii Pechura – who has close relationships and one of the associates of Kharkiv Mayor Hennadii Kernes. As you see, successful people should have a secured base and influential friends, which always support them in difficult situations.
But this list of influential allies of Chumakov is not complete. Until the last time ultimate beneficial owner of “Parking+” was Albina Bokli-Kardanova, a citizen of Switzerland, a manager of Russian brothers and businessmen Borys Zinharevych and Mykhailo Zinharevych.
Nowadays, “Parking+” is registered on Hong Kong offshore. At this time 83,94% of Kharkiv limited liability company “Parking+” is owned by Hong Kong offshore company Dragon Investment Development Limited. Ultimate beneficial owner of this Hong Kong offshore is Tan Dzhyn Li, a citizen of Malaysia, who also, similar to Albina, lives in Switzerland. We do not know what this Malaysian man is famous for, but we strongly believe he is a reputable businessman and will do his best to facilitate development of such powerful enterprise and will work for the benefit of Ukraine.
No to economizing!
Another life motto of Volodymyr Chumakov is guided by the principle “do not hold tight to money if it has something to do with a company that gave you a ticket to a successful life”. Especially, if we talk about government money. Under the initiative of Construction Department manager, «Parking+» is now able to repair roads for twice as much as an average cost for the works in the country.
For instance, in May last year, «Parking+» received 20,48 million hryvnia for a major road repair of five streets. The overhaul cost for the square meter of the roadway ranged from 560 to 1250 hryvnia which is twice as much as an average Ukrainian price at this period of time.
In June 2016, the enterprise received 80,98 million hryvnia for the Moscow avenue reconstruction. Then, 1 kilometer cost the city budget 43,07 million hryvnia. And in August, «Parking+» received 89,67 million hryvnia – this time, for the reconstruction of a new road sector of the same avenue. Only now the cost for a square kilometer has doubled and amounted to nearly 90 millions.
But does the quality of Kharkiv roads correspond to their high repair cost? Absolutely! The city of Kharkiv repairs some of the roads twice a year. At least on paper. Thanks to the ProZorro system it became public and the Road Construction Department of Kharkiv City Council concluded an agreement in October 2016 on a 1,04 million repair of the Universytetska street. But this road section had already been repaired in spring, and it was officially reported in press. Both tasks were executed by «Shlyakhrembud» communal enterprise. Same was the story with the Serhiivskyi Maidan that was repaired twice in 2016. Having not finished Maidan repair the first time, another 1,29 million hryvnia agreement on its repair was concluded immediately with the already familiar «Parking+» enterprise.
Having such enthusiasm for the road repair, Kharkiv should simply be the best city for drivers, shouldn’t it?
Decent Life
Despite Chumakov’s significant contribution to the city’s development, his salary is rather modest. Last year, it was just 98 447 hryvnia, meaning he was paid slightly more than 8 thousand hryvnia per month. In 2015, Volodymyr Chumakov’s salary and income was even smaller and equals 55,7 thousand hryvnia per year, and 4.6 thousand hryvnia per month. And in 2014, Chumakov’s salary was 48,85 thousand hryvnia, only 4 thousand hryvnia per month.
The burden to bring home the bacon fell on the tender shoulders of Volodymyr Chumakov’s wife, Olha. To keep the family afloat, she is forced to be a smart entrepreneur. And she has been quite successful. For example, last year she earned 1 million 187 thousand hryvnia! The year before – 1 million 554 thousand hryvnia, and in 2014 – 974 thousand hryvnia.
This is an example of a successful manager!
Road Construction Engineer Choses an All-Terrain Vehicle
It is not enough to make much money. One has to be skilled at wasting it.
The Chumakovs are not trying to cover up their love towards luxurious cars.
Interestingly enough, the main road construction engineer for some reason likes all-terrain vehicles. Is that due to the road quality? In July 2016, Mr. Chumakov purchased a luxury vehicle for 2,37 million hryvnia. The official chose Mercedes-Benz GLS 350 D 4 Matic. This is a new Mercedes of the 2016 model year, a new Mercedes-Benz GLS class all terrain-vehicle. This model appeared in Ukrainian car showrooms in April of the last year. In June of the same year, Chumakov also purchased a JCB Workmax 800 D quad bike of the 2014 model year. He spent 257,5 thousand hryvnia on it.
In April, Chumakov’s wife Olha purchased Porsche Cayenne of the 2016 model year for 2,52 million hryvnia. Thus, the family spent nearly 5 million hryvnia on the means of transport. This sum of money greatly exceeds the overall yearly income. Perhaps, they have been saving money for the purchases for many years. And even had to sell their old car, for which they got 1,68 million hryvnia.
Olha also manages the family’s housing matters. She is the owner of a 104,3 square meter apartment in Kharkiv, a 240 square meter dwelling house in Bystre cottage village in Kharkiv district, and 0,3 hectares of land in the same village.
Volodymyr does not own any real estate, yet he possess a collection of 5 valuable watches, among which one can find Perelet Double Rotor, Ulysse Nardin Maxi Marine Diver Chronometer, Ulysse Nardin Classico Luna, Hublot Classic Fusion, and Zenith Pilot Extra Special.
Olha Chumakova owns a Breguet Reine de Naples watch, 2 sets of jewelry along with 2 long fur coats of brown and blue color.
Now, when e-declarations have been implemented, everyone can learn on the example of the Chumakov family how hard work, talent, and right business decisions can guarantee welfare.
Currently, fight against conflict of interest in politics and cooperation between the authorities and business on an open and comprehensible basis has been the most progressive sector of Western European chapters’ activity of Transparency International anti-corruption movement. For instance, European officials of different levels are so afraid of conflict of interest accusations that even avoid voting on matters that may be somehow linked to their former business. Officials’ family members strive to get rid of a business provided a connection to it can potentially harm the reputation of their relatives in the government.
