Corruption in the Ministry of Regional Development: NABU puts an end to Chernyshev’s case investigation
31 December 14:39
The National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office have completed a pre-trial investigation into corruption in the Ministry of Regional Development. The investigation suspects former Deputy Prime Minister Oleksiy Chernyshev and five other people. This was reported by "Komersant Ukrainian" with reference to the NABU.
According to the NABU, the suspects are suspected of abuse of office and obtaining illegal benefits on a particularly large scale, both for themselves and for third parties.
The essence of the scheme, according to the investigation
The Anti-Corruption Bureau has established that one of the capital’s developers initiated a scheme to illegally obtain a land plot in Kyiv for the construction of a residential complex. To implement the plan, he turned to the leadership of the Ministry of Regional Development.
The investigation believes that the then-head of the ministry, together with the state secretary, advisor and director of the state enterprise, created conditions for the transfer of this land plot to the state enterprise. The company then entered into investment agreements with a predetermined construction company.
Overstatement of benefits and underestimation of land value
According to the terms of the agreements, the developer was to transfer to the state a part of the future apartments proportional to the value of the land plot. However, in order to reduce this share, the land and real estate located on it were valued almost five times cheaper than the market value.
The NABU notes that the difference between the market price and the underestimated valuation exceeded UAH 1 billion. This is the amount of real estate the state could have lost.
The implementation of the scheme was prevented by the seizure of the land plot at the request of the NABU and the SAPO.
Apartments with a “special price” as a possible unlawful benefit
According to the investigation, in exchange for successfully facilitating the transaction, the developer provided the officials with significant discounts on apartments in already built residential complexes. The cost per square meter for the defendants ranged from UAH 1 to 8 thousand, while the market price was about UAH 30 thousand per square meter.
Thus, according to NABU’s calculations, the former minister received an undue benefit in the form of discounts totaling more than UAH 14.5 million. Most of the apartments obtained under this scheme have been seized.
Other episodes in the cases of the former Deputy Prime Minister
In June, Chernyshov was served a notice of suspicion in a case of alleged corruption at the Ministry of Regional Development. In addition, he is also involved in a criminal proceeding regarding abuses in the energy sector known as the Midas case.
on November 11, the NABU served him with a notice of suspicion of illicit enrichment. The court imposed a pre-trial restraint in the form of detention, and on November 19, the former Deputy Prime Minister was released on UAH 51 million bail.
