The Ukrainian Railways Administration won a lawsuit against the Antimonopoly Committee of Ukraine (AMCU), which blocked preparations for the corporatization of Ukrzaliznytsia.
Railroad workers demanded the launch of a procurement procedure for property valuation services for the state monopoly, which AMCU officials suspended at the end of the summer.
As a reminder, the government decided to establish PJSC Ukrzaliznytsia on June 25, 2014. According to the approved schedule, the Cabinet of Ministers expected to receive a consolidated valuation report on the monopoly's assets by November 4 to form its authorized share capital. A tender was announced.
However, the deadline was missed due to the intervention of an unknown company from Poltava. As Maksym Blank, First Deputy Head of Ukrzaliznytsia, previously reported, UkrBusinessConsulting filed a complaint with the Antimonopoly Committee before the tender process was completed. The firm claimed it was unable to participate due to discriminatory terms of the competition. The Antimonopoly Committee heeded the complaint and suspended the procurement. However, by that time, bids had already been opened and the main competitors were known: international consulting firms Deloitte & Touche, Ernst & Young, and Baker Tilly Ukraine. The latter offered a lower price for its services of UAH 3,8 million, including VAT.
Representatives of Ukrzaliznytsia filed a lawsuit, arguing that the Poltava company's claims are nothing more than an attempt to disrupt government procurement.
On October 29, the Kyiv District Administrative Court upheld Ukrzaliznytsia's complaint. The judges concluded that Ukrbusinessconsulting had no grounds for complaint. Firstly, the company had not even requested tender documentation. Secondly, the Poltava company's expertise is narrower than the range of tasks the appraisers would be required to handle. For these reasons, the Antimonopoly Committee's decision to suspend the appraiser's services procurement was deemed unlawful. The court reinstated the procurement process.
Information:
The court case materials revealed the quantitative characteristics of Ukrzaliznytsia's assets: fixed assets—1,5 million units, valued at UAH 84 billion; unfinished capital investments—630 units, valued at UAH 6,5 billion; and permanent land use rights—400 plots, with an area of 48 hectares.
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