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 1,000-percent margins, 365-percent interest rates, - Balczun on corruption in Ukrzaliznytsia

Chairman of the Board of the country's major railway carrier Ukrzaliznytsia PJSC Wojciech Balczun unveiled a number of violations and irregularities in procurement of fuel, energy, spare parts and others.

As reported by Censor.NET citing Interfax-Ukraine, he said reporting on his performance at a meeting of the Cabinet of Ministers of Ukraine on Wednesday.

"We have used all the fuel reserve. Our fuel supplies covered only one day of operation on the worst days. The loan agreements with fuel suppliers were signed with a 1 percent daily penalty, which is 365 percent interest rate per year. I have seen nothing like this before," he said.

According to Balczun, blocking of tenders by the Anti-monopoly Committee, the courts, as well as intentionally lost lawsuits were usual.

"As for violations in power supplies: we know that one of our directors was electrocuted, the second one was abducted. The damages caused in this sector are estimated in tens if not hundreds of millions of dollars. As for the spare parts supply, we have studied the bids and found suppliers whose margins amounted to 1,000 percent," Balczun said.

See more: Ukrzaliznytsia to return Czech-produced Skoda train into operation, - CEO. PHOTOS

As reported, Procurement Center of Ukrzaliznytsia PJSC developed new bidding documents to hold open auctions to purchase diesel fuel for the needs of the railroad operator.

"The key element of the reform is that we will not request the suppliers to provide documents which are unnecessary to assess their bids. Diesel is the commodity with clear characteristics. Therefore, the price is the only criterion for assessing the bids. A supplier will declare that its product conforms to the established technical requirements. The papers confirming the quality and origin of the fuel will be submitted upon delivery," Procurement Center Acting Head Serhii Ivancha said.

The requirement to submit publicly available papers was excluded from the bidding documents.

See more: Law enforcers raid Ukrzaliznytsia subsidiaries and suppliers, already seized $1.5 million, - prosecutor general. PHOTO
 
 
 
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