The state-owned UGB (formerly Ukrgasbank) held several controversial tenders, for example, it ordered an advertising video for UAH 3.65 million, which is almost $90 thousand.
At the same time, the tender was held without open bidding. The bank also ordered support services for Oracle software, ready to pay UAH 25.696 million, but the auction ended in the amount of UAH 13.4 million.
It is noted that increased attention to UGB purchases arose due to the fact that they decided to change the positioning of the brand and corporate identity during a full-scale war.
“These questions are related to the fact that, firstly, the state bank for some reason decided to carry out restyling in the middle of the war, when the money could have been useful for more important matters. Secondly, it is not known how to calculate the effect of this action. Well, thirdly, it’s not a fact that all the money will go to restyling, and not, excuse me, to kickbacks, as has happened more than once,” the material says.
Advertising for 90 thousand dollars
One of the most suspicious tenders announced by UGB, the authors of the material call the order of one video up to 45 seconds long for 3.65 million UAH - “or almost 90 thousand dollars.” Moreover, without a competitive procurement procedure.
“At one time, the famous performer Olya Polyakova complained (or maybe boasted) that the most expensive video in her career cost her 100 thousand dollars. The video for her song “The Ice Has Been Broken” was shot by the famous (and very expensive) music video director Alan Badoev. The production cycle of the 6-minute video lasted several months, the video featured a lot of computer graphics, and also involved world-class figure skating stars. As we see, Ukrgasbank significantly outperformed Polyakova. The cost of a second of his advertising video is 7 times more expensive than a second of the singer’s video,” analysts noted.
At the same time, it is emphasized that one cannot but be alarmed by the fact that the Ukrgasbank tender took place as a “purchase without the use of an electronic system.” That is, without open bidding.
“According to the decision of the Government, using this procedure it is possible to purchase services worth only up to UAH 1.5 million - otherwise, tenders are only open. True, the resolution contains a clause that more expensive purchases without an electronic system are possible “when work, goods or services can be performed, delivered or provided exclusively by a certain business entity.” But the same resolution provides an exhaustive list of circumstances under which a violation of the basic procedure is possible. It’s interesting, what could be so special about the performer – Tabasco Worldwide LLC (Tabasco advertising agency) that Ukrgasbank should have ordered a video only for him?” – the material emphasizes.
Its authors emphasize that the possible argument about the need to protect intellectual property rights looks weak - after all, Ukrgasbank bought the rights to the intellectual property of the video script for 70 thousand UAH from the same Tabasco Worldwide LLC last year. “Then, by the way, he ordered this company to develop an update of his brand and communication strategy, also for a lot of money - UAH 3.994 million,” they recalled.
It is noted that advertising is also unlikely to become a “work of art”, for the creation of which purchases without an electronic system are also allowed. And the argument about “lack of competition for technical reasons,” according to them, is also untenable - after all, in Ukraine there are “hundreds of decent agencies capable of producing high-quality advertising videos.”
Moreover, it is emphasized that the price lists of other companies are “not so draconian.”
“It is noteworthy that, as Our Money writes, another company owned by the owners of Tabasco Worldwide LLC, Sigma UA, also likes to win government multimillion-dollar tenders, and also according to the procedure with one participant,” they recalled.
Tens of millions for software support services
Another dubious tender is Oracle software support services, 42 kits for 5 different types of software. The tender is interesting because, with the expected cost of UAH 25.696 million stated by the bank, the auction closed at UAH 13.4 million.
The winner of the said auction was Intrasystems LLC. This company is known for its participation and victories in numerous tenders announced by various government agencies and enterprises:
- "Ukrtransgaz";
- "Ukrenergo";
- NABU, etc.
“Ukrgasbank also has close relations with her. Judging by Prozorro data, the bank has repeatedly purchased equipment, software and services for updating it from this company. In 2023, Ukrgasbank purchased from Intrasystems absolutely identical services for technical support (updating) of the same Oracle software as during the aforementioned tender in July 2024 (except that in 2023, not 42, but 33 sets were purchased ),” say analysts.
They note: the bidding is fundamentally different in that, in particular, in last year’s bidding, unlike the 2024 bidding, the procurement had the status: “without the use of an electronic system.”
In addition, according to the figures available in the tender documentation, the money that Ukrgasbank spent on supporting 1 copy of the software in 2023 during a tender with one participant was on average 1.6 times higher than this year.
“Well, then simple mathematics... shows us the difference - about UAH 6.5 million overpayment by Ukrgasbank for software in 2023. Plus the potential overpayment of another 10 million UAH, which could have taken place this year if the bidding had not been competitive, laid down by bank officials. So much for purchasing “without using an electronic system”, here is a video for 3.65 million from one participant,” the material summarizes.
Another item of questionable spending by the state bank is UAH 7.85 million for filling the media with messages about restyling. The plans were “Napoleonic”:
- 6 all-Ukrainian magazines;
- 29 regional print media;
- 9 global and 21 local TV channels;
- 109 online publications.
As a result of trading held on February 26, 2024, the amount dropped to UAH 6.398 million. And the winner was Alt Media LLC.
“The choice of some advertising platforms immediately raised a question - in particular, the list contains annual publications, the release date of which is unlikely to coincide with the peak of the restyling itself, and the Internet versions still contain publications from last year. On the websites of some of the declared resources, information about the restyling of Ukrgasbank is presented as regular news - that is, without an advertising banner,” the material says.
Moreover, it is emphasized that no one knows about one of the announced magazines – “Gromada”. And Ukrgasbank agreed to pay him almost 100 thousand UAH for publication on the last cover page and half as much for “internal” publications.
“Of the three dozen colleagues interviewed, none had ever heard of him. Just as, it seems, the ubiquitous Google has not heard, which, upon request “Hromada magazine” in various combinations, returns anything - from a publication in Hungary to a magazine from the 19th century, but not a platform where it could advertise its restyling Ukrgasbank. Perhaps this is some kind of secret publication for bankers, the publication of which raises the bank’s rating to the very skies. In a word, it’s a mystery,” analysts say.
Spending on souvenirs and secret shoppers
The author of the material also raised doubts about the bank’s spending on souvenirs. For example, the Ukrgasbank tender for “Information indicators and stickers.”
“The price of the “Operating Mode” signs in the finalized tender is 508 UAH, but on the market you can find quite decent ones for 300+ UAH, and this is not even wholesale. On the other hand, it now seems to be not exactly “Ukrgasbank”, but “UGB eco bank”, which now may not be satisfied with a plastic plate, but only a metal one with engraved letters. Or, for example, a hoodie for 777 UAH according to the “Branded Clothing” tender. And on the market the price starts from 250 UAH,” analysts said.
Another interesting layer of tenders is “somewhat excessive” Internet promotion services during a full-scale war. In particular:
SMM services, expected cost 1.65 million UAH.
Services for setting up and posting information on Internet resources, for which 800 thousand UAH were offered.
Placing information and advertising materials on the Internet, for which Ukrgasbank was willing to pay UAH 9.25 million.
“And we haven’t yet mentioned the “Mystery Shopper Services”, for which Ukrgasbank was ready to pay 1.45 million and the planned 450 thousand UAH for “Car Wash Services” (the result was cheaper, but still somewhere 1,200 UAH per month per car), the authors of the material summarized. Noting: a request was sent to the management of Ukrgasbank “regarding an assessment of the effectiveness of all these services, their feasibility during the war, as well as incomprehensible overpayments during tenders with one participant.” However, no response was received.
