In recent years, many school and hospital renovations worth billions of hryvnias have been carried out using funds from the European Investment Bank. To ensure the completion of these projects, a contract perfomance security mechanism is used. The contractor deposits 5% of the contract amount into a bank and receives the funds only after fulfilling the entire contract. However, this mechanism does not always work as intended. For example, in the Troitska community, led by Oleh Chupryna, this safeguard somehow fails to function.
For example, in 2024, a procurement worth 97 million UAH was announced for the renovation of the “Ivushka” kindergarten in Pidhorodne. However, the contractor did almost nothing over the course of a year, so the contract was terminated, and Pidhorodne received nearly 5 million UAH through the contract performance security. This is a positive example, and we were also involved in making it happen.
Possible Corruption in the Troitska Community
But we have a clear example involving the Troitska Village Council, so let’s break down how it engages in “shady” tender schemes. Moreover, the contracts are personally signed by the head of the council, Oleh Chupryna, making him directly responsible for these procurements.
1. In 2019, the Village Council announced a procurement for the renovation of the Pryvochanska School using EIB funds, with a contract worth 27 million UAH.
All works were to be completed within one year, and the contract performance security was set for that same period.
However, the contractor failed to meet the deadlines, so the contract was extended – but the performance security was not.
2. In 2021, the Troitska Village Council launched another procurement worth 2 million UAH, supposedly to ensure the contractor would finally complete the work.
3. By 2022, the renovation was still unfinished, so the Troitska Village Community terminated the contracts. However, the contractor faced no financial penalties, as the Village Council had failed to extend the contract performance security. Meanwhile, law enforcement opened a criminal case over suspected price inflation.
4. In 2023, yet another procurement worth 7 million UAH was conducted. Upon analyzing the prices in this tender, we found that many items were overpriced by up to 80% compared to market rates. Based on our report regarding the inflated prices, law enforcement agencies launched an investigation.
So as a result of the actions of Troitska Village Council Head Oleh Chupryna and Procurement Officer Iryna Hrechka, additional procurements worth 9 million UAH had to be conducted – with a high likelihood of significant price inflation.
And all of this is happening with loan funds from the European Investment Bank – money that the state will eventually have to repay.
Price Inflation in the Troitska Community Is a Systemic Issue
For instance, in 2024, the Troitska Territorial Community carried out another procurement for the renovation of a different educational institution. Under the contract for the thermal insulation of the Pysarivka Gymnasium funded by the EIB, we also identified inflated prices. This suggests that corruption possibly may be involved here as well — and it is highly likely that Oleh Chupryna is aware of the situation. We conducted a partial review covering 18 items.
On the market, the total value of these items is 2.8 million UAH, but according to the official documents, 5.9 million UAH was paid – an overpayment of approximately 110%.
For example, mineral wool with a thickness of 150 mm was purchased at 541 UAH/m², while the market price is just 182 UAH – nearly a threefold overpricing.
Similarly, the prices for metal roofing, timber beams, and insulation materials were inflated by nearly two times.
At present, most state institutions turn a blind eye to such price inflation and possible corruption in procurement within the Troitska Community.
The Village Council quietly signs off on work completion reports with inflated prices, the Ministry for Communities and Territories Development fails to notice the issue, and the State Audit Service sees no price manipulation either.
So far, only the police and NABU are documenting these violations to some extent. But when the European Commission and the European Investment Bank eventually review how their funds are being spent, they will be shocked by the inaction of most state institutions.
See also: Slobozhanske Village Council and Corruption Involving European Partners’ Funds
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This publication was prepared with the financial support of the European Union and the National Endowment for Democracy (NED). Its contents are the sole responsibility of the Civil Control Platform and do not necessarily reflect the views of the European Union or NED.