Corruption Scheme Exposed in Kyiv's Construction Sector

Kyiv's construction sector has been plagued by corruption, with top state officials implicated in a large-scale scheme to illicitly obtain a land plot. The scheme involved a developer, the Minister of Regional Development, and several other officials, and resulted in a loss of over UAH 1 billion to the state.

Key Takeaways:

• A developer in Kyiv's construction sector created a scheme to illicitly obtain a land plot for a residential complex, with the involvement of top state officials, including the Minister of Regional Development (Chernyshov).
• The scheme involved creating a state-owned enterprise to transfer the plot, and then concluding investment agreements with a construction company, with the developer obligated to give the state a portion of future apartments in exchange.
• The land and buildings were valued at almost five times cheaper than their market value, resulting in a loss of over UAH 1 billion to the state.
• The developer provided a significant discount to the Minister and other officials designated by him, with the Minister receiving an unlawful benefit of over UAH 14.5 million.
• The NACB and SACPO seized the land plot, and most of the illegally obtained apartments, at the request of the NABU detectives.
• Chernyshov claimed to have had a constructive dialogue with the NABU detectives, and expressed his readiness for full cooperation in the legal sphere.

Statistics:

• The state's loss due to the corruption scheme exceeded UAH 1 billion.
• The developer provided a discount to the Minister and other officials designated by him, with the total amount exceeding UAH 14.5 million.
• The market value of the apartments was approximately UAH 30,000 per square meter.
• The land and buildings were valued at almost five times cheaper than their market value.

Sources:

• A report by the National Anti-corruption Bureau of Ukraine (NABU)
• A statement by NABU detectives
• A Facebook post by Chernyshov