Billion for reconstruction: Kyiv renovated a veterans’ hospital and got into a corruption scandal

The National Anti-Corruption Bureau of Ukraine is investigating possible embezzlement of budget funds during the renovation of a veterans’ hospital in the Kyiv region. The central figure in the case is the first deputy head of the Kyiv City State Administration, Mykola Povoroznyk, who is considered close to Kyiv Mayor Vitaliy Klitschko.

In April 2024, Klitschko publicly appealed to the NABU to check the costs of repairing the medical facility. However, according to information from the Telegram channel “Oblichitel,” his deputy may be involved in the alleged abuses. The contractor was chosen to be the company Absolut Klimat, headed by Vyacheslav Berezovsky, who is considered a friend of Povoroznyk. Sources report that he repeatedly visited the deputy mayor at the Kyiv City State Administration building.

The case also includes the hospital director, Oleksandr Borisov, the official responsible for conducting tenders (presumably Elena Ponomareva), and the director of the health department, Valentina Ginzburg. According to the Telegram channel, the internal audit revealed the alleged violations after the tender procedures were completed, contracts were signed, and the NABU investigation began.

Meanwhile, in March 2024, the Kyiv authorities found themselves in another corruption scandal, trying to implement a good deed for the military. In 2023, Mayor Klitschko announced a large-scale renovation of the Kyiv City Veterans Hospital in Pushcha-Vodytsa, planning to create a modern rehabilitation center with comfortable conditions and innovative technologies. However, the initiative turned out to be accompanied by delays, tender cancellations, and abuses at the procurement stage.

UAH 1.1 billion was spent on the hospital’s modernization, a record amount for overhauling a medical institution—more than half of all funds allocated for the construction, restoration, and reconstruction of medical institutions in 2023. For comparison, the “Defender of Kyiv” program received funding at UAH 1.09 billion. Still, it was adjusted under public pressure after the “Money for the Armed Forces” campaigns started.

An analysis of the hospital’s renovation costs became known only after a request from a people’s deputy. It was revealed that UAH 629 million was spent on materials, while their cost was overstated by 2.4 times, according to the publication “Nashi Groshi.” Tenders were held under a simplified procedure that avoids competition, with a single participant, the company Absolut-Klimat, which sharply increased the volume of contracts from the Kyiv City State Administration from UAH 160–200 million per year in 2018–2020 to UAH 1.6 billion in 2023 alone.

The lack of open access to estimates and special requirements for tender participants also complicated competition. Although this is not a direct violation, Dozorro points out that such requirements often limit the range of possible participants.

The hospital’s chief physician, Borys Borisov, supports the project, noting that the renovation will indeed improve patient accessibility. He appeals to new regulations that came into force in 2021.

The renovation was carried out as part of the “Health of Kyivans” program, which is financed from the city budget. In 2023, UAH 1.849 billion was allocated for capital repairs, indicating that the Pushcha project took a significant part of the entire annual budget for such work.

After the criticism, the mayor appealed to the NABU. On Klitschko’s instructions, the Department of Internal Financial Control and Audit of the Kyiv City State Administration conducted an inspection, revealing several violations. In particular, the customer has already eliminated expenses of UAH 820,000 by installing previously installed equipment and providing corrected documentation. As a result, terminating the contract with Absolut-Klimat for capital repairs of facades, roofs, and window replacement made avoiding more than UAH 102 million in expenses possible.

According to Prozorro, this company signed a contract with the veterans’ hospital for UAH 504.23 million, which became one of the most problematic during the controversial repairs.

The Kyiv City State Administration has not yet commented on the situation, and Povoroznyk or other participants in the case have not made any public statements.

Among the suspects are also former officials of the Gostomel military administration, who are suspected of embezzling budget funds.