Kyiv City State Administration auditors have again caught the management of the Engineering Center municipal enterprise in financial violations // Collage KV
Auditors from the Kyiv City State Administration (KCSA) continue to record financial irregularities in the operations of the Engineering Center municipal enterprise. It has been revealed that between 2018 and 2021, during the reconstruction of an outpatient clinic in the Darnytskyi district and the overhaul of an emergency department in the Svyatoshinskyi district of Kyiv, this enterprise lost UAH 2,08 million to the city budget and inefficiently spent another UAH 1,3 million. Most of these funds, as usual, were squandered by inflating the cost and scope of work. While it is known that the director of the Engineering Center, Mykhailo Terentyev (pictured), has partially "corrected the errors," it is unlikely that systemic "improvements" will occur. The management of this municipal enterprise previously promised the capital's authorities to better monitor its employees and contractors.
As it became known KVRecently, the Department of Internal Financial Control and Audit of the Kyiv City State Administration published the results of a scheduled audit of the activities of the Engineering Center.
The corresponding audit report, No. 070-2-3-0410, is dated August 10, 2022. This document was published on the aforementioned department's website in mid-September of this year—when it became known which auditors' comments had been taken into account by the Engineering Center's management and which had been ignored.
As noted in the report, the Kyiv City State Administration's Department of Internal Financial Control and Audit audited the renovation of non-residential premises for a family medicine clinic at 23 Darnytskyi Boulevard (Darnytskyi District) and the overhaul of the building of Emergency Care Department No. 8 at 15-A Yakuba Kolasa Street (Svyatoshinsky District). The Engineering Center commissioned these works between 2018 and 2021. It was found that, during the implementation of these projects, the management of the Engineering Center, a municipal enterprise, lost UAH 2,08 million to the Kyiv budget and ineffectively spent UAH 1,3 million.
The reconstruction of non-residential premises into a family medicine clinic at 23 Darnytskyi Boulevard was carried out between 2019 and 2021 and cost the Kyiv city budget UAH 24,4 million. This amount included the costs of design work, architectural supervision, construction, and customer service. Five contractors were engaged to carry out this work, including ChP "Sabi", ABOUTNGO "Construction company "Anta" и Promservisproekt LLC.
Among other things, the auditors found instances of inflated costs and volumes of construction work performed by Anta Construction Company LLC. The report states that the Engineering Center utility transferred an "excess" UAH 1,28 million to this contractor. This relates to the improper application of resource elemental estimate standards (REKN). Specifically, instead of the work specified in the contract, similar, but cheaper, work was performed and accepted. For example, the contractor performed "external wall masonry of medium complexity at a floor height of 4 meters," although it was supposed to "lay" 510 mm-thick ceramic brick walls with facing brick cladding at a floor height of 4 meters.
Between 2018 and 2020, 29,1 million hryvnias were spent from the capital's budget on the major renovation of the emergency medical care building at 15A Yakuba Kolasa Street. This covers the entire range of work, from design to construction and supervision. Seven contractors performed the work, including LLC "NPP "Geotekhnika", LLC "K.D.K. Stroy", Energy Consulting LLC, LTD Absolut-Climate.
Among other things, Kyiv City State Administration auditors found that the Engineering Center overstated the cost of construction work performed by Absolut-Climate LLC at this site by UAH 2 million. Specifically, this utility inefficiently used UAH 973,4 to pay for materials such as metal fencing, granite products, and so on. Furthermore, the RECN was improperly applied. For example, instead of "installing compacted clay subbase layers," it instead performed "installing compacted sand subbase layers."
The Kyiv City State Administration's Department of Internal Financial Control and Audit provided the Engineering Center with 12 recommendations to address the identified violations and prevent them in the future. As of September 12 of this year, the company had fully implemented only five of them. Five more recommendations were partially implemented, and two were not implemented at all. Specifically, the Engineering Center secured additional construction work from Anta Construction Company LLC and Absolu-Climate LLC totaling UAH 1,6 million. However, the Engineering Center has yet to identify a person responsible for monitoring the actual volume of construction work performed.
As reported by KV, Kyiv City State Administration auditors continued to record numerous financial "sins" in the operations of the Engineering Center municipal enterprise. Specifically, an audit conducted in 2017 revealed that during the reconstruction of the passageway connecting the Dnipro metro station to Kirovogradska Street (now Volodymyra Brozhko Street), the enterprise committed violations that resulted in a loss of UAH 21,8 million. Following this, the Engineering Center's management assured Kyiv City State Administration auditors that the enterprise had begun holding weekly working meetings to strengthen oversight of compliance with the law when calculating the costs of design, survey, and construction work, and that employees had begun to be warned of liability for violations.
The activities of the Engineering Center municipal enterprise have also repeatedly attracted the attention of law enforcement agencies. For example, in February 2018, the Shevchenkivskyi District Prosecutor's Office of Kyiv opened a criminal investigation into alleged budget embezzlement during the major renovation of the City Children's Clinical Hospital No. 2, which Armabud Ltd., commissioned by the Engineering Center, carried out from 2016 to 2018. Investigators were "surprised" that the same work was included in the estimates several times. Consequently, according to law enforcement, the Engineering Center spent 84,3 million hryvnias on this project ineffectively.
However, none of the potential defendants in this investigation has yet received even a suspicion, let alone a guilty verdict.
Let us remind you that the position of director of the KP "Engineering Center" has been occupied by Mikhail TerentyevHe has served three consecutive terms on the Kyiv City Council. In the current 9th convocation of the Kyiv City Council, Terentyev is a member of the UDAR faction and chairs the standing committee on architecture, urban development, and land relations.
The Engineering Center municipal enterprise is under the jurisdiction of the Kyiv City State Administration Department of Construction and Housing, which has been headed by Boris RabotnikFrom March 22, 2016 to October 25, 2019, this department was headed by Konstantin Fedotov, from October 25, 2019 to July 1, 2020 - Vladimir Denisenko, from July 1, 2020 to December 14, 2020 - Sergey Martynchuk.
The activities of this department have been supervised by the Deputy Chairman of the Kyiv City State Administration since 2018. Vyacheslav NepopThe latter is known as the former director of the municipal enterprise "Zhilinveststroy-UKB" (from 2002 to 2018) and a deputy of the IV, V, VII, VIII convocations and the current IX convocation of the Kyiv City Council (in the last elections he was elected from the party of the mayor of Kyiv). Vitali Klitschko "HIT").
translation Skelet.Org
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