“Kyivzelenstroy” bought equipments at 241% higher prices

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Kyiv state administration published the results of an audit of the activities of the communal association “Kyivzelenstroy” on planning and conducting procedures for the purchase of special purpose vehicles and electric vehicles for 204.6 million hryvna, as well as the implementation of supply contracts 2016-2017.

In general, the audit revealed violations that led to losses totaling more than 2 million hryvna. Identified violations could contribute to the loss of another 171 million hryvna.

In particular, the audit revealed an unreasonable increase in the price of goods and conclusion of void contracts, which led to illegal costs of almost 2 million hryvnas, “Kievzelenstroy” also managed to buy on-board vacuum cleaners at a price exceeding the average market price of such products by 183.1%, Which causes the damage of Kyiv budget.

During the audit, it turned out that in 2016-2017 “Kyivzelenstroy” joint-stock company constantly bought equipment that was 95-241% more expensive than the estimated cost in the capital.

And the mechanical vehicles did not pass the appropriate registration at the enterprise, so it is not known whether they were received at “Kyivzelenstroy” in general or not.

In conclusion, the audit report said that officials allowed the inefficient use of funds with estimated losses of more than 2 million hryvna, over that the risk of potential losses of approximately 16 million hryvna and with estimated additional costs of approximately 104 million hryvna, this is calculated without taking into account possible commercial  margins of suppliers.

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