One of the companies that regularly wins tenders for construction and renovation in Novomoskovsk and Dnepr is NEW BUILD ASSEMBLY LLC.
Since the start of its activities in 2019, this company has repeatedly been at the center of corruption scandals related to inflated prices for work and goods, fictitious competitions and money laundering.
Fictitious tenders and suspicions of money laundering
NEW BUILD ESTATE LLC constantly wins tenders of the Novomoskovsk and Dneprovsk city councils. The company has a history of cooperation with the Department of Humanitarian Policy under the leadership of Ksenia Sushko, who was involved in the repair of schools and shelters in the Dnieper. Over four years, the company received contracts totaling more than UAH 236 million of budget funds.
However, from the beginning of the company’s activities, suspicions of inflated prices for work and materials began to appear. As part of one of the criminal proceedings (No. 32020100110000044), law enforcement officers drew attention to possible money laundering schemes. The investigation showed that NEW BUILD ESTATE used fictitious enterprises to legalize budget funds. The total amount of damage caused to the budget is 50 times more than the funds received.
Overestimation of materials costs
During one of the tenders for the renovation of canteens and bathrooms in Dnepr, a significant overestimation of the cost of materials was discovered, which reached a double or even triple difference between the market and tender prices. Prosecutors seized documents that confirmed the illegal use of budget funds.
School shelters and “facelifts”
In addition to construction and repairs in the Dnieper, the company is actively working in Novomoskovsk. The situation with the renovation of basements in schools, which were supposed to serve as shelter, became especially resonant. In 2023, NEW BUILD ASSETS LLC won the tender for the renovation of the basements of Novomoskovsk gymnasiums and lyceums in the amount of almost 18 million UAH.
However, after the completion of the repairs, the parents of the students and the students themselves discovered numerous violations. In all basements of educational institutions, fungus continues to grow and mold forms, which indicates that work on treating surfaces with a neutralizing solution was not completed. In addition, none of the basements have the necessary ventilation installed, which was provided for in the tender documents and estimates. This means that tens of millions of hryvnia of taxpayers were actually embezzled through fraudulent schemes.
According to tender documents, one of the key items was the renovation of the basements, which included treating surfaces against fungus and installing ventilation systems. However, reality showed that these works were ignored. In all schools, a lack of mold protection measures was identified, and ventilation systems were not installed at all.
This tender was checked by auditors (see document) and violations were found.
“Taking into account the established violations of legislation in the field of procurement, guided by Articles 5 and 10 of the Law of Ukraine “On the Basic Principles of Implementing State Financial Control in Ukraine” dated January 26, 1993 No. 2939-XII, Article 8 of the Law of Ukraine “On Public Procurement” dated December 25. 2015 No. 922-VIII The Eastern Office of the State Audit Service obliges to take measures to eliminate identified violations established by law by terminating the contract dated July 19, 2024 No. 21 in the amount of UAH 21,479,595.76 including VAT and, within five working days from the date of publication of the conclusion, to publish through electronic procurement system information and/or documents indicating the adoption of such measures,” the document says.
These facts raise serious doubts about the integrity of the contractor, NEW BUILD ESTATE LLC, whose beneficial owner is Mark Schuchman. The certificates of completed work were signed by the head of the housing and communal services department, Evgeniy Semenyuk, who later admitted that he was forced to do this under pressure from the mayor of the city, Sergei Reznik.
This situation demonstrates not only the dishonesty of contractors, but also corruption schemes that affect the quality of life of Novomoskovsk residents. Money that should have been used to improve conditions in educational institutions was actually stolen, leaving the basements in unusable condition. This not only damages the city’s budget, but also creates a health hazard for the children who study in these institutions.
Additional agreements and delays
The company also actively used the practice of additional agreements to delay the completion of work. Funds were transferred to the company's accounts, but no repairs were actually carried out. For example, a tender for the repair of a shelter in Novomoskovsk worth more than UAH 1.1 million was delayed due to additional agreements that violated public procurement legislation. The Economic Court of the Dnepropetrovsk Region in case 904/737/24 partially satisfied the prosecutor’s claim to invalidate the additional agreements.
Connections with the Dubinsky brothers
Law enforcement officers associate NEW BUILD ASSETS LLC with the Dubinsky brothers, who control several enterprises involved in money laundering schemes through fictitious tenders. Previously, companies such as Stroyinvest Engineering and Ecology-D, which were involved in roads and waste removal in the Dnieper, were already featured.
NEW BUILD ESTATE LLC has become a typical example of a company that systematically uses connections with local officials to embezzle budget funds through fictitious tenders. Inflating the cost of materials, money laundering through fictitious enterprises and corruption schemes have become a constant practice of this company. Despite numerous investigations and criminal cases, the company continues to win tenders, and the system of additional agreements allows the work to be delayed without incurring significant legal consequences.
