In August, the DOZORRO team prevented the inefficient use of almost UAH 45 million. This was achieved through requests that DOZORRO had sent to procuring entities and law enforcement agencies in previous months. These results were reached through three mechanisms:

• Contract amount reductions – UAH 16,7 million
• Inclusion of evidence of violations into already opened criminal proceedings — UAH 14.06 million
• Initiation of new criminal proceedings — UAH 13.7 million. 

Since the beginning of the year, we have helped save nearly UAH 679 million in this way.

Meanwhile, last month our analysts detected violations in 56 procurement transactions worth more than UAH 5 billion. Potential overpayments amounted to UAH 178 million. The most striking cases and typical violations are summarized in our monthly report. 

What violations we found

In August, the DOZORRO team analyzed 69 procurement transactions with a total estimated value of over UAH 5 billion. Violations were identified in 56 of them. 

As usual, the most widespread problem was inflated estimated value or risk of overpayment — this time in 44 procurement transactions, amounting to UAH 178 million. 

There were also other violations: in three tenders, procuring entities made errors in tender documentation or during publication of information on Prozorro; in three cases, they unjustifiably rejected participants or, conversely, declared ineligible ones as winners. In addition, three tenders contained discriminatory requirements that restricted competition.

August’s criminal proceedings

This month, we will focus in more detail on criminal proceedings, as they formed the basis for preventing overpayments of more than UAH 13.7 million. Interestingly, all three cases concern the procurement of protective structures — mostly at schools and lyceums. 

UAH 5.8 million in overpayments at Velyka Oleksandrivka School No. 2

Back in February, we detected potential overpricing in the construction of a civil protection shelter at Velyka Oleksandrivka Secondary School No. 2. A contract worth UAH 155.8 million was signed with Ukrbud-Project-Reconstruction LLC. For this amount, the company was to build an underground dual-purpose protective structure with anti-radiation properties for 720 people. In addition to basic shelter facilities, the project envisioned classrooms, sports rooms, workshops, a 100-seat cinema, a medical station, a buffet, engineering facilities, and separate storage rooms for furniture and equipment. Ukrbud-Project-Reconstruction LLC was a sole bidder. 

DOZORRO experts reviewed the cost estimates and identified an overpayment of UAH 5.8 million for construction materials. The largest potential overpayment concerned hot-rolled ribbed reinforcement steel (class A-III, diameter 20–22 mm), amounting to more than UAH 3.7 million. Metinvest-SCM sold this material at UAH 30,000/ton, while Stalmira sold it at UAH 31,849/ton; the winning company planned to supply reinforcement steel at UAH 42,509.75/ton (hereinafter, prices are given as of the time of the initial procurement analysis and submission of requests). We also found potential overpayments in various types of concrete mixes. 

In winter, we sent the school our calculations and a request to reduce inflated prices. The procuring entity replied that it saw no grounds to amend the contract. The next step was DOZORRO’s request to the Kherson Regional Prosecutor’s Office, which subsequently opened a criminal case regarding inflated prices for construction materials. 

Ukrbud-Project-Reconstruction LLC was registered in 2016. Since then, the company has had seven directors. Since April this year, it has been managed by Yurii Yarovyi. His predecessor, David Kizimenko, has repeatedly been the subject of journalistic investigations. According to Slidstvo.Info, he is suspected of embezzling budget funds during reconstruction works in Sumy region. In the certificate submitted to participate in the tender for the major repair of the surgery unit at the Institute of Traumatology and Orthopedics of the National Academy of Medical Sciences of Ukraine, Ukrbud-Project-Reconstruction LLC indicated that its director, David Kizimenko, is suspected by law enforcement of two corruption offenses. 

School in Kyiv Region: UAH 5.7 million in overpricing 

The second August case concerns the remaining works on the construction of a secondary school of grades I–III in the village of Chaiky on Kotsiubynskoho Street in the Kyiv-Sviatoshyn district. In the UAH 140.9 million contract, our experts identified a potential overpayment of UAH 5.7 million. As in the previous case, the winner, PJSC Agrobudmekhanizatsiia, was the sole bidder.

The largest overpricing was detected in topsoil. The contractor planned to supply it at UAH 2,413.20 per cubic meter — far above market prices. For comparison, Emerald Stone sold topsoil at UAH 364 per cubic meter, while ABT offered it at UAH 266 per ton. On this material alone, the overpayment could have reached UAH 3 million.

In May this year, we contacted Borshchahivka Village Council of Bucha district (Kyiv region) and requested to lower the price, but our request was ignored. Once we saw the first payments under the contract, we reported to the prosecutor’s office. The result was the opening of a criminal proceeding.

Shelter for Vysokopillia Lyceum in Kherson Region: UAH 2.2 million in overpricing

The third case involves the construction of a bomb shelter for the Vysokopillia Lyceum of the Kherson Regional Council. DOZORRO experts discovered a potential overpayment of UAH 2.2 million — more than 6% of the contract value. Reinforcement steel, concrete mixes, radiators, and lighting fixtures were among the items overpriced.

Budengineering-TM PE was the sole bidder. Vysokopillia lyceum signed a contract with the company for UAH 38.1 million. Back in June 2024, we contacted the procuring entity, asking it to revise the material prices. The entity responded that prices were consistent with regional market levels and that it had conducted its own market monitoring during contracting. After no changes were made and first payments were issued, in July 2025 we reported potential overpayment to the Kherson Regional Prosecutor’s Office. A criminal case was opened.

This was not the first time the winning company had come to our attention. In June, we wrote about a potential overpayment of nearly UAH 12 million in procurement of the Kramatorsk City Council, where Budengineering-TM PE was also contracted.

The State Audit Service also took interest in this procurement. During monitoring, auditors noted the absence of a detailed work schedule. The procuring entity explained that the timeframes were determined by the general terms of the contract and that construction would begin once a building permit was issued by the State Inspectorate of Architecture.

_______

This material is funded by the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.