The capital's TCC spent 14 million to renovate a canteen from an unknown company

BC BUD PLUS, a small company with no experience in fulfilling government orders, managed to win the tender and renovate the canteen in the Kiev TCC during the full-scale war for almost 14 million UAH.

During the period of a full-scale war, the Kiev city territorial center for recruitment and social support allowed itself to renovate the canteen for almost 14 million UAH. Why is it now necessary to renovate premises that have stood quietly for 50 years and are not in the worst condition? And how did the small company “BC BUD PLUS”, with no experience in fulfilling government orders, win the tender? StopCor analysts looked into it.

On social networks, the public is again actively discussing the misuse of funds associated with the Ministry of Defense.

According to the ProZorro platform, the Kiev City Territorial Center for Recruitment and Social Support (KMTSC and SP) held a tender in the amount of UAH 13.8 million for the overhaul and restoration of a canteen located in an industrial zone in one of the districts of the capital.

Based on the results of the tender, on November 27, 2023, an agreement was concluded with the private company “BC BUD PLUS”, which was the only participant in the tender.

What are these much-needed repairs?

And the situation developed as follows. This year, after a commission inspection, officials of the relevant military command authorities determined the need for immediate major repairs of the building and canteen premises.

Therefore, it was decided to hold a tender for major repairs in order to further organize meals for personnel. After all, according to TCC representatives, the canteen, technological and storage facilities have not been updated since 1976.

According to the terms of the tender documentation, the contractor undertakes to:

• clean the internal surfaces of the walls and paint them;

• arrange floors and suspended ceilings;
• replace door frames;
• lay out new electrical wiring and lighting;
• organize new water supply networks and heating systems.

All this work should be completed by the end of March 2024.

But here doubt arises about the need for such expenses and the choice of contractor. Is it really not possible to find a less expensive option? Do we now need suspended ceilings, a complete replacement rather than a renovation?

What is generally known about “BC BUD PLUS” ?

According to YouControl, the company “BC BUD PLUS” is very young in the construction market, registered in 2020. Its owner and main and only beneficiary is Yaroslav Levchenko. The authorized capital is 50 thousand UAH.

From 2020 to 2023, “BC BUD PLUS” took part in seven purchases for a total amount of UAH 14.6 million. All these amounts were small, so contracts were concluded directly, without an auction.

The only open tender in which the company participated was the renovation of the TCC canteen for UAH 13.8 million. That is, the company does not have sufficient experience in fulfilling government orders.

According to financial statements on the Opendatabot platform, it is clear that in 2022 the company had less than UAH 3 million in net income and only 15 employees.

Therefore, taking into account the number of services specified in the contract (dismantling old doors, grilles, lamps, communications, preparing walls and ceilings for further work), it becomes unclear how “BC BUD PLUS” should have time to complete these types of work.

What is also alarming about this tender is the nuance that a company with an authorized capital of 50 thousand hryvnia will not be able to compensate for damage caused by improper fulfillment of the terms of the contract, even if it receives the first payment of 3 million UAH.

How  did the public react to such purchases?

The public reaction to the use of almost 14 million UAH from the state budget was not long in coming. Angry comments immediately followed on the ProZorro platform. “It is inappropriate to use funds when there is a shortage of combat equipment in war. Have a conscience, this money is extremely necessary on the front line,” users write.

However, the State Audit Service did not react in any way and did not even respond to the comments submitted on November 11 and 18.

In the same ProZorro, citizens write that the guys on the front line independently repair vehicles and cover the needs associated with the performance of a combat mission. And, accordingly, they urge not to waste public funds.

Some activists went even further: they even showed what the canteen looked like, renovated at a cost of 13.8 million UAH.

However, all complaints and comments remained unanswered, although society today has completely different priorities. None of the Ukrainians are against repairs, but during the war people ask to invest in improving the conditions of barracks and hospitals. Therefore, the public demands a more reasonable use of public funds that does not lead to misunderstandings.

StopCor analysts sent a request to the auction customer to clarify information about the need to use 13 million UAH to repair a canteen at the height of the war in Ukraine and are now awaiting a response. We will notify you additionally if we receive comments from TCC and JV.

A particularly interesting fact is how BK BUD PLUS LLC, which previously did not have such large-scale experience in construction and renovations, decided to take on a contract worth almost 14 million UAH and what is planned to be done in the TCC canteen for such an amount. To clarify all the circumstances, the StopCor team sent a request to the company.

UPDATED:

Unfortunately, during the preparation of the material, the editors made an annoying inaccuracy, due to the complete coincidence of the last name, first name and patronymic of the beneficiary of the company BK BUD PLUS LLC and another Yaroslav Levchenko , who has nothing to do with the business and has been defending Ukraine for about two years in ranks of the Armed Forces. This information was promptly edited in the text of the article; we refute the previously published erroneous information regarding Yaroslav and publicly apologize for such an unfortunate mistake by the serviceman and everyone who might have been offended by it.

We note that as part of the analysis, StopCor sent an official request for comment to Ukrzaliznytsia and the company “BC BUD PLUS” itself, but at the time of publication of the material did not receive a response.