Five steps toward injustice

Luhansk Energy Association (LEA), run by the Russian-Ukrainian Konstantin Grishin, won a tender, February 13, gaining a 50 percent interest in Vinnytsia’s regional energy distribution company Vinnytsiaoblenerho, getting the better of VS Energy International Ukraine. LEA had offered 167.75 million hryvnias prior to the biddings, compared to the rival’s 167.8 million hryvnias, (at 167.65 million hryvnias starting price). There were five bids ending up with 176.2 million hryvnias when VS Energy International Ukraine gave up the struggle and the State Property Fund of Ukraine (SPFU) proclaimed the winner: LEA.

Everything looked OK, unless one knew the background. On February 3, the first attempt to hold this tender/auction failed because there was no bid evaluation committee quorum. The State Property Fund resolved to hold another tender on February 13. Apart from the abovementioned bidders, Oleksandr Sabura’s Lviv regional distribution company, Lvivoblenerho, was also admitted. According to Sabura, their starting price would be two to three times higher. He believed that the SPFU was playing into a certain hand.

But then the Prosecutor General’s Office stepped in and the SPFU made a U-turn, saying everything was done “in accordance with the statement of objection, on the part of the Prosecutor General’s Office of Ukraine,” in regard to the findings of the SPFU task force concerning the purchase of 50 percent of Vinnytsiaoblenerho stocks. SPFU failed to check out Lvivoblenerho despite the incriminating evidence: “Any potential buyer failing to supply the required documents will be denied admission to the tender.”

Lvivoblenerho will sue, of course. Whether they will have their damage claims fulfilled is another matter, something MP Oleksandr BONDAR, former SPFU head, doubts. He told The Day: “The Fund acted this time precisely the way it has done over the past two years. They knew the one who had to win the game, but then they found someone getting in their way. There is this [PGO] statement that nobody can deny, all lawful background notwithstanding. Apparently, no one concerned is determined to sue, just as no court of law will be happy to handle such a case, considering that the final ruling will be made ‘upstairs.’”