.png)
In July, the Dariivka Village Council of the Kherson District announced a purchase of over 11 million hryvnias for the repair and modernization of the cafeteria of the Lymanets Lyceum. The project is financed from the local budget and state subvention under the Ukraine Facility program with EU support.
At first glance, it appears to be an ordinary renovation of school infrastructure. But if you look closely, the story has several alarming signals.
Only one company applied for the tender - CONSORTIUM MAHISTRAL PLUS. It became the winner, signing an agreement for over UAH 10.6 million. This contractor is associated with a business group that journalists and law enforcement officers have repeatedly mentioned in investigations into corruption schemes, shell companies, and tax evasion.
The company was established only in June 2025, and its majority share (80%) is controlled by Avtomagistral-Zakhid LLC. This construction market giant has received over UAH 900 million in government contracts in recent years, mostly without competition.
Journalistic investigations have linked this company to Bohdan Yulyk, the former head of the Ternopil Region Highway Service, who is a defendant in several criminal proceedings. His name has repeatedly appeared in cases of fraud, fictitious transactions, and the use of controlled companies to evade debts and taxes.
Another co-founder of the consortium, Valk Construction Company LLC, is also from Ternopil Region, headed by a former official who was convicted of bribery in 2017. Despite this, the company continues to receive government contracts.
The State Audit Service has already begun to audit the procurement. Monitoring started back in August after signs of violations were identified. Auditors requested explanations and documents regarding the project, estimate, and technical specifications of the equipment. The customer confirmed the cost of UAH 11.6 million and provided links to documents in the DREAM system.
However, questions remain: why only one participant? Does the cost correspond to market prices? Are there any structures with a dubious reputation behind the contractor?
When tenders are won by companies associated with those involved in criminal cases, not only are community budget funds at risk, but also international aid aimed at restoring education, infrastructure, and a safe environment for children.
Modernizing the school cafeteria should improve conditions for students, but transparency and control are no less essential components of quality reconstruction.
We have prepared a practical guide for residents that allows you to effectively monitor procurement in your community. The steps are straightforward and useful, as they directly contribute to increasing transparency and enhancing the quality of the process.
Read the full report at the link.
This material has been produced with the support of the European Endowment for Democracy (EED). Its contents do not necessarily reflect the official opinion of EED. Responsibility for the information and views expressed in this publication lies entirely with the author(s).
