Dubious methodology: journalists asked the Audit Service to check the tender for the search for a manager for the Gulliver shopping center

In the tender of the agency for asset search and management for the search for a manager for the capital’s Gulliver shopping center, UNN journalists identified possible corruption risks. In this regard, an appeal was sent to the state audit service of Ukraine with a request to monitor this purchase for compliance with the law. The auditors’ response is currently expected.

Details

As part of the journalistic investigation, an analysis of the tender documentation was carried out. The expected purchase price is 300 thousand UAH and is calculated according to the formula, where the manager’s fee depends on the percentage of income received from asset management.

However, ARMA did not want to disclose the methodology for determining the expected value, but instead quoted the content of the provisions of internal Order No. 223 of 29.09.2023 on methodological recommendations for conducting competitive selection of asset managers.

Analyzing the tender documentation, it was found that the estimated value of the asset is more than UAH 7.5 billion, and the minimum monthly amount of revenues to the state budget is more than UAH 17.3 million.

According to ARMA order, if the value of an asset exceeds UAH 10 million, the expected value should be calculated using a different formula. It turns out that Arma chose a formula whose application contradicts their own methodological recommendations.

Taking into account the identified inconsistencies, the Ukrainian national news agency appealed to the state audit service of Ukraine with a request to start monitoring this purchase for compliance with the requirements of the legislation on public procurement. The request was registered and the auditors ‘ decision is currently pending.

Please also note that the order used by Arma has not passed the anti-corruption examination, is not registered with the Ministry of Justice, and does not have a conclusion on regulatory impact. But it regulates issues that affect revenues to the state budget.

The Arma procurement procedure, despite its declared transparency, raises serious suspicions of corruption risks. It is necessary to ensure control over such tenders in order to avoid losses for the state budget and create fair conditions for all participants. The editorial board will continue to monitor the progress of monitoring and publish new details regarding this tender.

Recall

On October 30, ARMA announced a competition to select a manager for the Gulliver shopping center. The head of the agency Elena Duma proudly statedthat she approached the selection of the manager of this high-profile asset as strictly as possible and even set the maximum possible 4 criteria for candidates. Among the conditions that the contest participants must fulfill are the property status with a total value of at least UAH 100 million, a professional team, proven experience in managing similar facilities and confirmed financial viability.

However, experts criticized the establishment of very “narrow” criteria for potential managers of seized property, as in the situation with the competition for the management of the Gulliver shopping center, because this may limit competition and call into question the transparency of the process.

In addition, when announcing the competition, the agency for asset search and management did not take into account the fact that the building of the Gulliver shopping center is collateral for a mortgage loan in state – owned banks, including Oschadbank. However, among the criteria issued by the ARMA, there is no mention of the need to pay the loan.

Oschadbank has repeatedly stated that the decision to transfer Gulliver to ARMA harms the interests of the state bank, because it will deprive it of loan payments from the company that owns the capital’s complex. Oschadbank’s lost income due to the termination of loan payments may amount to more than UAH 20 billion.

After the announcement of the competition, Deputy Chairman of the Board of Oschadbank, responsible for working with NPL, Arsen Milyutin in a comment to UNN stated that the State Bank plans to recover in its favor the building of the capital’S Gulliver shopping center , if ARMA transfers it to management. He expressed outrage that instead of paying off the loan to state-owned banks, Gulliver’s earnings will be given to an “incomprehensible manager.

Only after that and under public pressure, ARMA representatives decided to meet with Arsen Milyutin, Deputy Chairman of the Board of Oschadbank responsible for working with NPL, to discuss issues of managing the seized asset that affect the interests of the state bank in terms of paying off loan debts. As expected, it was not possible to reach a consensus at the meeting and the parties agreed to “continue cooperation”. Milyutin saidthat at the meeting in Arma , they promised to once again “investigate in detail” the relevant regulations for the possibility of including payments to creditor banks in management costs. However, it is worth noting that Arma’s rhetoric has not changed dramatically after this meeting – they continue to justify that the current legislation does not allow the agency to become a creditor or debtor in the obligations of the asset owner.