The Ministry of Health, with the permission of Deputy Finance Minister Igor Umansky, paid 78,786,008.00 hryvnia to Ukrprofmed LLC, the former general contractor for the construction of the new building of the NDSB "OKHMATDET".
According to the head of the PS, deputy Oksana Korchinskaya, this happened secretly in the last days of last year.
"On December 24, Ukrprofmed LLC, the general contractor for the new Okhmatdet building from 2011 to 2013, which was controlled by Viktor Yanukovych Jr.'s assistant, Lidiya Shevchenko, was paid almost 79 million hryvnias in alleged debts for work they completed during that period, with the permission of Deputy Health Minister Ihor Pereginets and First Deputy Finance Minister Ihor Umansky, who was dismissed a week later," the PS chairperson stated.
She also notes that immediately after the change of power in the country, a protocol was signed between the state-owned enterprise Ukrmedproektbud, which is the balance holder for the construction, and the Ministry of Health, according to which the state-owned enterprise committed not to repay any debts to previous developers until May 2017.
"It was precisely this condition, incidentally approved by both the new Minister of Health and the Prime Minister of Ukraine, that became the basis for allocating an additional 500 million hryvnias for the hospital's completion," notes O. Korchynska. "Furthermore, on December 29, as the chair of the inter-faction parliamentary group 'For Completing Okhmatdyt,' I attended a meeting between Minister Kvitashvili and the head of the State Enterprise, where they reported on the 48 million hryvnias spent on construction and the purchase of specialized equipment for the hospital's construction this year. There was no mention of any intention to repay any debts to previous developers."
In this regard, the Board of Trustees appealed to the head of the Security Service of Ukraine, the Minister of Finance, and the Ministry of Health with a demand to investigate this operation. As a result, the Minister of Finance and the Security Service of Ukraine convened an urgent meeting, where a decision was made to freeze the funds in the accounts of the State Enterprise "Ukrmedproektbud" and LLC "Ukrprofmed" for the duration of the investigation.
"As of today, Ukrprofmed has returned 62 million hryvnias to the accounts of the state-owned enterprise Ukrmedproektbud. But this is in the form of repayable financial assistance, meaning that when this money, frozen during financial monitoring, is unblocked, they will be able to take it back. The rest of the money has disappeared, we are certain, through kickbacks for the repayment of these so-called debts to Viktor Yanukovych Jr.'s companies."
According to Marina Slobidchenko, a specialist at the Center for Transparency in Construction in Ukraine, only 4 million hryvnias are currently confirmed as the state's debt to Ukrprofmed LLC in the court of first instance.
According to the conclusion of the NGO "Center for Transparency of Construction in Ukraine", which analyzed the situation, in this case, there was misuse of budget funds by the State Enterprise "Ukrmedproektbud", since the funds were directed "contrary to the provisions of the budget program passport 2301810."
"This entire scheme," according to the hospital's PS, "was only made possible thanks to the General Director of the State Enterprise, Irina Koval, who was supported by Deputy Ministers Pereginets and Umansky."
In this regard, the Board of Trustees demands the dismissal of the person responsible for completing the country's main hospital, who instead concealed "an illegal payment of almost 80 million hryvnias to the previous general contractor," and an investigation into his official actions.
REFERENCE
The state enterprise “Ukrmedproektbud” is the customer of the construction and the balance holder of the new building of the NDSB “OKHMATDET”.
Until 2015, Ukrprofmed LLC was the general contractor for the construction of the new building of the OKHMATDET National Children's Hospital and was controlled by Viktor Yanukovych Jr.'s assistant, Lidiya Shevchenko.
On topic:
OKHMATDET: "THE CONSTRUCTION SITE OF THE CENTURY" BUILT ON CHILDREN'S TEARS
This investigation by Medical Control for the "Dose of Truth" project took over six months to prepare. During its preparation, we met with experts and insiders, obtained materials by hook or by crook, and begged for documents on Okhmatdet. As a result, we were able to uncover and describe a massive criminal scheme aimed at stealing 700 million hryvnias from children with cancer in Ukraine.
For every new government in our country, the implementation of a grand social project in healthcare has been a point of honor. If the unfinished "children's hospital of the future" became a household word for Viktor Yushchenko, evoking a smirk, then the construction of a modern treatment and diagnostic complex at the Okhmatdet National Children's Specialized Hospital in Kyiv could become a similarly sad reminder of the "Yanukovych era" for future generations.
The fact that the new Okhmatdet building is being built by the "Family" companies has been repeatedly reported by the media—Ukrainian Pravda, TVi, and others. But the real picture was hidden from the public during Yanukovych's time. Now it's clear, and the cynicism is astounding.
GOP-COMPANY
1. The political “roof” of the project and the main beneficiary is Viktor Viktorovich Yanukovych.
Viktor Viktorovich Yanukovych
No further comments are needed.
2. The main builder of the project and the money maker is Vilen Grigorievich Shatvoryan.
Vilen Grigorievich Shatvoryan
A close friend of the youngest son of the fugitive president, Viktor Viktorovich Yanukovych, a people's deputy of Ukraine and member of the Party of Regions faction, controls the company "Euroinveststroy" - the main contractor for the construction of the new building of the "Okhmatdet" National Children's Hospital.
At the time of his election to the Supreme Council, Vilen Shatvoryan was listed as the founder of Donbasstransoil, a trade and industrial company that recycled tires from EU countries. The Shatvoryan family's business is registered in the Donetsk region, including Yenakiyeve, where the former president was born and raised. The deputy's father, Grigor Shatvoryan, met the head of state back in 1988, during the formation of teams to respond to the aftermath of the earthquake in Armenia.
In addition to the construction of the new Okhmatdet building and several other construction projects, Shatvoryan's companies actively "mastered" funds from Ukrzaliznytsia and other state monopolies during Yanukovych's time.
As an active ally of the "Family" during the "Revolution of Dignity," Vilen Shatvoryan, while head of the Union of Armenians of Ukraine and head of the Kyokushin Karate Federation, defended the Berkut riot police, which fired on peaceful demonstrators, on television in January 2014 (channel 112.ua), and covered up the murderers of the first member of the Heavenly Hundred to die in the clashes on Hrushevsky Street, the Armenian Euromaidan protester Sergei Nigoyan.
3. The project curator in the Cabinet of Ministers of Ukraine is Yuriy Sergeyevich Anistratenko.
Yuri Sergeevich Anistratenko
First Deputy Head of the Secretariat of the Cabinet of Ministers of Ukraine, born in 1959. He graduated from the Kyiv Automobile and Construction Institute in 1981. He served as Vice President and Head of the Design, Research, and Expertise Department at Kyivmiskbud Holding Company (headed by Mykhailo Polyachenko).
A simple construction worker, thanks to a fortunate marriage, had a meteoric rise: first, on March 12, 2010, he became a member of the Board of Directors of Kyivmiskbud, and on June 21 of that year, by order of the Cabinet of Ministers, he was appointed Deputy Minister of the Cabinet of Ministers. On April 11, 2011, he was appointed First Deputy Head of the Secretariat of the Cabinet of Ministers of Ukraine.
On August 21, 2013, Yuriy Anistratenko was dismissed from his position as First Deputy Head of the Secretariat of the Cabinet of Ministers of Ukraine at his own request, as stated on the Cabinet's official website. However, according to the newspaper Segodnya, which reported on August 23 of last year that Anistratenko had resigned, law enforcement officers conducted searches of Anistratenko's home and office on August 14-15, 2013.
He was a particularly trusted confidant of Azarov and oversaw all construction projects in the Cabinet of Ministers. Anistratenko is a Distinguished Builder of Ukraine. He was renowned for his insistence on speedy construction. This often resulted in construction work being carried out without well-developed design solutions—designers would produce working documentation after the work had been completed. However, due to widespread flaws, completed buildings were subsequently delayed for years (for example, the National Cancer Institute's surgery department was completed two years after its official opening, while the general contractor, Kyivmiskbud-2, went bankrupt). But that was no big deal: the budget funds for the construction had already been spent.
The results of his actions were so outrageous that even under the old regime, his friendship with Azarov did not save him – he was expelled amid scandal and criminal charges.
4. Technical lobbyist for the project at the Ministry of Health – Lidiya Anatolyevna Shevchenko.
Lidiya Anatolyevna Shevchenko
She began her career as an assistant to Yevhen Kushnarev, a tragically deceased member of parliament, deputy of the Party of Regions faction, and head of the Presidential Administration under Leonid Kuchma. She entered our story as an assistant and press secretary to Member of Parliament Viktor Viktorovych Yanukovych. She was a remarkably energetic woman, capable of kicking open the door to the office of virtually any minister during Viktor Yanukovych's presidency, even during meetings.
She assisted her boss with the Automobile Federation of Ukraine and promoted Ukrainian cinema by organizing Ukrainian film nights in Cannes. Her main focus in recent years has been overseeing the construction of the new building for Okhmatdet, including as a member of the Ministry of Health's Coordinating Council for the activities of Okhmatdet, in accordance with Order No. 68 of the Ministry of Health of Ukraine dated February 1, 2012.
She was the main lobbyist for the signing of the necessary documents for the project in the Cabinet of Ministers, the Ministry of Transport, the Ministry of Health, and UkrEuroInfraProject.
5. Project Manager – Irina Yuryevna Koval.
Irina Yuryevna Koval
Today, Iryna Koval, Director of the State Enterprise "Ukrmedproektbud," represents the project's client. She was involved in this megaproject as Director of the general contractor, Ukrprofmed LLC, which is constructing and equipping the new building of Okhmatdyt.
At one time, Ukrprofmed was headed by Iryna Koval's best friend, the well-known pharmaceutical businesswoman Olena Bekh, the daughter of police Colonel General Valentyn Nedrygaylo. Both figures are well known to those interested in government procurement of pharmaceuticals, especially vaccines. Olena Bekh currently oversees vaccine supplies from Sanofi, the main supplier of vaccines under the state immunization program.
Both of their roles at the Ministry of Health are linked to a corruption scandal, criminal cases, and prison sentences for members of the Ministry of Health's tender committee. A criminal case was opened against high-ranking officials of the Ukrainian Ministry of Health and the heads of certain commercial entities who illegally purchased the Pentaxim vaccine from Sanofi in 2009.
As the Ministry of Internal Affairs noted, these individuals, using their corrupt connections to more than double the price of the Pentaxim vaccine, embezzled budget funds on an especially large scale, totaling over UAH 63,5 million. Read more here.
Irina Koval herself spoke about the special construction training of employees and management of the Ukrprofmed company. From her interview with the newspaper “Uryadovy Kuryer” in the original language: “The company (“Ukrprofmed” - ed.) was founded in 2006. The main focus of their activity was to provide Ukraine with clear disinfection methods. Such as do not harm the human body and nature. Nina is already a pioneer of daily hygiene and disinfection practices. In addition, the company supplies daily dosing devices for antiseptic and disinfection products, systems for the preparation of medicines, and pharmaceuticals for medical purposes. We write that we are creating trends in the market of technologies and disinfection methods.”
This "experienced" builder became the general contractor and general designer of the new Okhmatdet building.
Organizational structure for project implementation or the structure of an organized crime group?
It's clear that people with such lobbying capabilities and track records were above the law in our country during Yanukovych's rule. Therefore, the Okhmatdyt construction project was launched on a grand scale, quickly, and without any concern for even the slightest legitimacy.
Okhmatdyt was initially appointed as the construction contractor. The hospital held a tender for the construction work, which was won by the state-owned corporation Ukrmontazhspetsstroy, a company with numerous successful projects under its belt both in Ukraine and abroad. However, construction never began, and the Ministry of Health voluntarily declined funding for the construction program (probably the first time in Ukrainian history that a ministry has declined funding). The government then changed the recipient of the targeted funds from the Ministry of Health to the National Agency for the Preparation and Staging of the 2012 European Football Championship in Ukraine and the Implementation of Infrastructure Projects (UkrEuroInfraProject). Consequently, the tender results were annulled.
Why is the government appointing the National Agency for Euro 2012 Preparations, rather than the Ministry of Health, the relevant ministry, as the recipient of targeted funds? How can an agency that builds stadiums and implements infrastructure projects effectively implement a complex healthcare project?
The logic is actually quite simple. During the preparation and implementation of Euro 2012, procurement is being carried out without red tape, i.e., without tenders, on a non-competitive basis, using a single-source procurement procedure. The money goes into reliable, reliable hands. And it's being shared out in full.
The functions of the customer for the construction of the children's clinic on behalf of the National Agency for the Preparation of Euro 2012, in accordance with the order of 15.06.2011 No. 436, are performed by the State Enterprise "Ukrmedproektbud" (the successor of the State Enterprise "Infrastructure Projects").
But can an organization with no connection to either the management of Okhmatdet or the site on which the hospital is located be the construction contractor? Our "defendants" likely wondered this too, and to legalize this utterly foolish scheme, they found nothing better to do than draft and sign a simple cooperation agreement between the Okhmatdet National Children's Hospital and the State Enterprise Ukrmedproektbud on August 5, 2011, granting the latter the functions of the contractor. Thus, the special operation to remove the project from the Ministry of Health's jurisdiction and place it under the jurisdiction of the National Agency for Euro 2012 was completed. However, there was no Cabinet of Ministers order or joint order from the Ministry of Health and the National Agency transferring the contractor's functions. Is such a scheme legal? Let the relevant law enforcement agencies decide.
Given the lobbying landscape, the criteria for selecting contractors for the new Okhmatdet building construction project were not economic feasibility or the presence of similar experience implementing modern, unique medical technologies, but rather the promotion of their companies.
Thus, the general contractor, Ukrprofmed LLC, the general designer, Ukrstroyproekt Scientific Design and Construction Institute LLC, the main contractor, Euroinveststroy LLC, and other subcontractors were selected on a non-competitive basis. All without a tender, simply by mutual agreement (sic!).
Construction began not only without an approved project, but without a project at all. By early summer, buildings were already being demolished and the site was being prepared, but the project only passed state expert review in December 2011 (expert opinion of the State Enterprise "Ukrgosstroyexpertiza" No. 00-1952/1-11/CB dated December 16, 2011), and was approved by the Cabinet of Ministers on December 12, 2011 (Cabinet of Ministers Order No. 1280) – by which time the foundation pit had already been dug. The fact that the Cabinet of Ministers approved a project that had not yet passed state expert review is a clear confirmation of the "team's" lobbying capabilities and, of course, a new question for law enforcement.
There was no construction permit either. Permitting was only obtained after project approval on December 29, 2011, under No. 11411118228, that is, closer to mid-winter, when the foundation was already being poured.
Who in our country could afford to begin such a massive construction project without the necessary permits? Only those close to the Family.
The quality of the design for this extremely complex clinic—a unique facility in Ukraine—is simply beyond discussion. What could have been accomplished in four months is a rhetorical question. It's safe to say that the project only passed state review thanks to lobbying. This explains why changes were made to the design and why the design process continues to this day, parallel to construction.
Naturally, given the pace of the design process, there simply wasn't enough time to conduct geological and hydrogeological studies crucial to the building's future. This is despite the construction site being located in a landslide zone of the historic Lybid River basin, where high-rise buildings were not built during the Soviet era.
But reducing the cost of design work by preparing bogus reports without conducting the actual studies proved insufficient. Significantly more budget funds had to be spent. Unfortunately for the participants in the scheme, achieving large amounts of funds during the initial construction phase in 2011 was technically impossible. But if you really want to, you can, even by violating construction procedures. Rumors of the horror that unfolded on the site during the first year of construction still circulate in construction circles. They say piles were driven into an aquifer, concrete was poured in winter at temperatures of -25°C, and much more.
But it's no big deal if you have such lobbyists. If the money can't be spent on construction, we'll write it off for the purchase of unique medical equipment. In 2011, UAH 103,02 million was spent on this item, naturally, through non-competitive procurement procedures with a single participant. And it doesn't matter that at the time of the equipment purchase, the foundation pit was still being dug, and the clinic is scheduled to be completed in three years. If necessary, we'll buy it. The Ministry of Health will, of course, sign off on the equipment procurement list (remember the lobbying power). Thus, they purchased a Swedish Elekta Synergy S linear accelerator and an AnyScan trimodal SPECT/CT/PET system from the Hungarian manufacturer Mediso. As a public assessment later revealed, the equipment was purchased at a significantly inflated price compared to the cost of similar equipment. The purchase of the linear accelerator for UAH 59,5 million resulted in a budget loss of UAH 28 million.
According to our information, the equipment remains in its original packaging in warehouses and the interior of the unfinished building, and its commissioning date is unknown. Should any unforeseen issues arise during equipment installation after the warranty period, the state will bear the cost of repairs, and this additional funding is not provided for in the budget.
Appetite comes with eating
Construction of the new Okhmatdet building continued, and the appetites of our "gangster gang" grew. Ms. Koval decided to consolidate the project's management and control entirely in her own hands, which was essential for the continued successful plundering of the project's budget. As a result...
The project has a general designer who oversees the project and makes changes to it if necessary. But that's not a problem. Something else surprising happened: the general designer of such a financially sound and solvent project, the Scientific Design and Construction Institute Ukrstroyproekt LLC, with its director, Natalia Abuyevna Dzhanbekova, went bankrupt. After that, the general contractor, Ukrprofmed, became the general designer. And so, a company selling disinfectants became the designer of a highly complex technical facility—a unique children's bone marrow transplant clinic, unparalleled in Ukraine.
But this wasn't enough. Iryna Koval resigned as director of the general contractor and, in May 2013, became director of the state-owned enterprise Ukrmedproektbud, the construction client. Clearly, she retained control over the contractor. And to increase her control over the process, Koval amended the cooperation agreement between the construction client and Okhmatdet, acquiring all the client's powers through a simple contract for the transfer of client functions (Appendix 1).
A wonderful system: I order the work myself, design it myself, execute it myself, and accept it myself. What more could you want?
Most likely, Koval needed to gain control over the construction client, general contractor, and general designer so she could make unconditional changes to the project. Naturally, these changes were bound to lead to a significant increase in construction costs. Back in October 2012, the Ministry of Health, out of the blue, unilaterally amended the medical specifications by order No. 842 of the Ministry of Health dated October 26, 2012. Given the "team's" lobbying capabilities, it's clear that this desire was realized as if by magic, including with the help of then-Minister of Health Raisa Bogatyreva, who personally oversaw the construction of the new Okhmatdet building.
Raisa Vasilievna Bogatyreva
UkrEuroInfraProject prepared a design brief based on the amended medical specifications, and by early autumn 2013, Ukrprofmed had amended the project. The amended project passed the review by the State Enterprise "UkrDES" and received a positive expert opinion (No. 00-130313/CB) on September 16, 2013. It was reviewed by the Ministry of Regional Development and Construction of Ukraine on September 26, 2013, and approved by Cabinet of Ministers Resolution No. 737 on October 9, 2013.
Oops! And almost UAH 700 million more (the estimated cost increased from UAH 1,784 billion to UAH 2,477 billion) of budget funds must be spent on unspecified changes. Meanwhile, the clinic's functionality is unlikely to improve if the façade system and waterproofing are replaced with more expensive ones. But who cares about the health of young patients when that kind of money is at stake?
Now it becomes clear why Koval had to be appointed general designer by the general contractor, Ukrprofmed. Clearly, a self-respecting designer like Dzhanbekova would hardly have agreed to sign off on the new Okhmatdyt construction project, which would require the state to spend an additional almost 700 million hryvnias.
Moreover, the very fact of undergoing a re-examination raises questions about its legality, as re-examinations are not permitted if the general contractor is the designer. We hope law enforcement agencies will answer this question.
The increase in the cost of the project was mainly due to the expansion of the list of equipment with high-cost medical equipment (Appendix 2).
Given that procurement is conducted without tenders, and the primary criteria are not clinical or economic feasibility, the bulk of the increased budget will end up in the pockets of the "gop-company." A clear example of this is the planned purchase of the Aquilion ONE 640 CT scanner from Toshiba Medical Systems (Japan), priced at UAH 32 million, which is significantly higher than market prices and could result in a loss of UAH 22 million in public funds.
According to the specifications, this device is additionally equipped with functions for cardiac imaging. The purpose of these functions in the new building of Okhmatdit, where treatment of children with cancer is planned, is unclear. However, the project managers persistently promote this particular device, including in their responses to inquiries from members of the inter-faction parliamentary association "Children of Ukraine – the most modern hospital Okhmatdit," forgetting that a hundred meters from the construction site is the Center for Pediatric Cardiology and Cardiac Surgery, where such a CT scanner would certainly be of greater benefit to children. But the devices aren't the most important thing; the most important thing is money.
The scale of the theft by the "gangster gang" was off the charts, even for the Yanukovych regime. First, Anistratenko, the project's main lobbyist in the Cabinet of Ministers, was charged. Then, activists and members of parliament took an interest in the project. Their investigation not only revealed the scale of the theft but also cast doubt on the future successful operation of the clinic after its completion and its ability to undergo international accreditation, which is essential for its inclusion in the system of similar clinics in Europe.
As a result, in February 2014, investigative bodies opened pre-trial proceedings into the corruption cases uncovered (Appendix 3). And, surprisingly, it was the revolution that saved the "firms" from investigation.
The most interesting part is left for later. The revolution has won, the government has changed, and the remarkable "gang of thugs" continues to run the project. Having already found curators in the new government, the "team" is preparing to plunder another $150 million raised for the project's completion under state guarantees.
Meanwhile, Health Minister Oleh Musiy, instead of raising the issue of lustration of the "gang" managing the project, should changes be necessary, is declaring the need for the rapid completion of the new Okhmatdet building with the involvement of international investment.
I don't want to end on a sour note. We believe that large-scale projects can be implemented in our country, and that Okhmatdet can be completed, turning it into a leading European clinic.
To do this you need to:
1. Conduct an international examination of the project.
2. Conduct an investigation into the identified facts of theft.
3. If necessary, make changes to the project that will ensure the effectiveness of medical services provided at the clinic and will serve as the basis for the international accreditation procedure for the clinic.
4. Remove Yanukovych and Shatvoryan's people from project management and create a modern, open structure for project implementation without conflicts of interest, overlapping functions, and with public oversight from both patient and professional organizations.
Attachment 1
Attachment 2
Attachment 3
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