Oleg Prokhorenko
In our continuing series of publications on the activities of the Prokhorenko organized crime group within the state-owned company Ukrgazvydobuvannya, we will examine in more detail the manipulation of the tender procurement process and, consequently, the results.
Investigators will have numerous instances at their disposal proving how Ukrgazvydobuvannya management is stealing money from the state-owned company through tenders for the benefit of their "friends and buddies." Given the Russian roots of many of the individuals involved in the schemes, the Security Service of Ukraine's interest in the billion-dollar scams of the Prokhorenko organized crime group is entirely understandable.
The immediate management of Ukrgazvydobuvannya and their patrons at the parent company, Naftogaz NJSC, have built a streamlined and efficient system for distributing state-owned company contracts among a predetermined pool of suppliers. This creates a complete illusion of the fairness, transparency, and legality of such tenders. But this is only an illusion. Investigators are already working to dispel this illusion and turn the harsh realities of widespread theft among executives in the state-owned fuel and energy sector into criminal charges against Ukrgazvydobuvannya's management. And if investigators pursue this case to the very end, Naftogaz's management will also be forced to flee the country, as Oleksandr Onyshchenko, a gas billionaire from the Yanukovych era, recently did.
The most striking example of the system of manually distributing government contracts among trusted individuals and creating the appearance of transparent tenders is the purchase of "air"—technical audit services worth 37 million—from the American company Goragovo Energy Engineering Corporation. This tender scam by the Prokhorenko organized crime group turned out to be the most complex, multi-step, and technologically advanced, judging by the materials available to a special team of investigators from the Prosecutor General's Office, the Security Service of Ukraine, and the National Anti-Corruption Bureau.
Other episodes cited in the analytical report for the group of investigators, which is at the editorial board's disposal, are more straightforward and primitive.
What's the easiest way to win any game? Set the rules yourself. That's exactly what the state-owned company Ukrgazvydobuvannya did with its 37 million-ruble tender for "technical audit services": the winning company was given the opportunity to formulate its bidding requirements in such a way that no one else could win.
This information, which was passed on to a group of investigators, is confirmed by previously published correspondence between the management of Ukrgazvydobuvannya and the future winner of the tender.
This letter is more than obvious proof of manipulation of tender results: the writing of the technical part of the tender was given to the winner, who was determined in advance.
"Iskander Diyashev, a Russian citizen who previously worked for the Russian company Sibur, was an active participant in the correspondence with Ukrgazvydobuvannya's management. The correspondence indicates that Iskander Diyashev was preparing a 'technical specification' for a tender in which his American company, Goragovo Energy Engineering Corporation, was participating," according to an analytical report by a group of investigators for the Prosecutor General's Office, the Security Service of Ukraine (SBU), and the National Anti-Corruption Bureau (NABU).
Oleksandr Klimov, advisor to Ukrgazvydobuvannya CEO Oleh Prokhorenko, reports to Oleksandr Romanyuk, Ukrgazvydobuvannya's first deputy: "The draft is current as of Friday. Iskander is currently finalizing it based on the objectives and unique skills of the team members."
Klimov is also not alien to Russia's interests: he has Russian citizenship (it is hidden from prying eyes), as evidenced by a copy of his passport.
Andriy Kobolev, the patron of Prokhorenko's organized crime group in Ukrgazvydobuvannya, the parent company of Naftogaz NAK ( read more about him in the article "Andriy Kobolev: An Inconspicuous "Veteran" of the Gas Pipeline "), is well aware of the citizenship of Klimov and other key players, as the address of the Naftogaz director is listed among the recipients of a scanned copy of Klimov's passport.
This group of people from the Russian oil industry, directly controlled by the Russian state, is behind the tender, which is won by their colleague, Iskander Diyashev, a former employee of the Russian Sibur company and the owner and representative of American shell companies.
Now let's appreciate the elegance of the "transparent and legal" corruption scheme for embezzling 37 million in public money, which is reminiscent of the story of "the house that Jack built."
The letter containing the "rules of the game"—the terms of the tender—from Diyashev was dated August 17 of last year. On August 27, a tender was announced under the rules written by Diyashev. A company controlled by Diyashev won the tender.
Below we present a detailed scheme of tender manipulation, as seen by law enforcement agencies:
Behind the front line, an “insightful” tender was held for the purchase of “technical audit” for an amount of approximately 37 million UAH. The first tender for “technical audit” was announced on 09/03/2015, then it was postponed to 03/09/2015. The announcement about this tender was published on September 27th. Two companies, Triskel Energy Ukraine and Goragovo Energy Engineering Corporation, applied for the tender.
From the correspondence published in ZMI, it is clear that Iskander Diyashev was involved in the preparation of technical materials for the tender. And just a few days later the company, representing Diyashev, Goragovo Energy Engineering Corporation, submitted documents to participate in the tender. The possibilities for the tender participants were registered inclusively to win the Goragovo Energy bidding, obviously the competitors had no chance. The first time, Prokhorenok’s team was unable to hold a tender for consulting services, as another company applied to participate in the tender. And in the spring of the month, the PJSC “Ukrgazvydobuvannya” had a chance to hastily cancel the auction, rather than come to terms with the idea of giving millions of sovereign funds to the “American friend” Iskander Diyasheva did not leave them.
In the fall of 2015, PJSC “Ukrgazvydobuvanny” made changes to the “Procedure for purchasing goods, work and services”, which regulates procurement. In addition to making changes, the purchase of “technical audit” services can now be carried out without a tender. The company held “negotiations” with several foreign companies and acquired the American PetroSkills. Formally, otherwise, everything has been vindicated, the best company was chosen, but the same Russian Iskander Diyashev turned out to be the main participant in the negotiations with PetroSkills.
This confirms our assertion made above: if winning the game fairly is impossible, then you simply need to change the rules and win fairly. This is precisely how, completely "legally" and through supposedly "transparent" tenders, the management of the state-owned company Ukrgazvydobuvannya and Oleh Prokhorenko distribute tens of millions among friendly entities. And these "honest thefts," most likely for a fee, are condoned by the management of NJSC Naftogaz, represented by Andriy Kobolev.
As industry experts joke, Kobolev and his protégés at Ukrgazvydobuvannya, particularly Oleh Prokhorenko, "are already shaking in their seats": in less than a month, law enforcement agencies have already nabbed several high-level executives from Naftogaz. In June, Oleksandr, the former deputy chairman of Naftogaz's board, who had worked at the company since the Yanukovych era, was arrested. Less than a month later, in July, investigators came for Serhiy Pereloma, the current first deputy chairman of Naftogaz's board.
Previously, MP Oleksandr Onyshchenko was caught in theft schemes at Ukrgazvydobuvannya ( read more about Oleksandr Onyshchenko in the article "Oleksandr Onyshchenko: A Man with a Taste for Scandal ") . However, the SBU believes this is a banal reprisal by Ukrgazvydobuvannya head Prokhorenko and his political patrons, disguised as a "fight against corruption." Law enforcement officials have information that Prokhorenko and his people unsuccessfully attempted to wrest control of Onyshchenko's billion-dollar business. When it became clear that they would not be able to gain control of Onyshchenko's billions, Prokhorenko, on orders from above, simply turned him in. How else can one explain the fact that Prokhorenko, his team, and the leadership of the Naftogaz national joint-stock company calmly watched for over six months as billions were stolen before their eyes. And only then did they suddenly wake up and actively cooperate with the investigation?
But the noose around Ukrgazvydobuvannya's management is tightening, and very soon the ground beneath their feet will be on fire. We'll be following this story.
Viktor Martov for Politica-UA.com
On the topic: Alexander Onishchenko: a man with a taste for scandal
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