Member of the Anti-Corruption Council under the Ministry of Defense, Alexander Gerashchenko revealed data indicating that the State Logistics Operator (DLO) awarded multi-billion contracts for food supply to the Armed Forces of Ukraine to a select group of companies, bypassing open tenders on ProZorro.
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Subscribe“I would like to remind everyone about the contracts signed in the second quarter of 2024, without ProZorro, without tenders, and without disclosing information regarding the pricing for each of these 'selected' suppliers. The information presented in the table below demonstrates a persistent selectivity,” Gerashchenko wrote in his blog.
He displayed a table showing which companies received the most expensive contracts—some exceeding 2 billion UAH. It is also evident that these companies quoted the highest prices for food packages, yet this did not deter the DLO from wanting to allocate billions from the budget to them. Gerashchenko speaks of the “persistent selectivity” of the State Logistics Operator towards specific “chosen” companies.
According to him, such selectivity is also evident in cases where suppliers violate quality standards for food intended for the Armed Forces. The DLO punishes some suppliers for minor violations, while it does not terminate contracts with those who have dozens or hundreds of documented infractions.
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But, Gerashchenko asks, why were contracts not terminated with other suppliers when violations and instances of substandard products were documented?
For example, the DLO did not terminate the contract with “Asix Group,” where the Ministry of Defense found rotten eggs and counterfeit oil during inspections. The contract with the Busk Canning Plant was also not terminated, despite the fact that it stores food for the military in a foul-smelling freezer with rotten walls and dirt.
The member of the Anti-Corruption Council believes that the reason for the supply of substandard food for the military lies in the selectivity of the DLO towards its suppliers. He urged the State Logistics Operator to cease this practice of selectivity, as it poses direct corruption risks and could undermine the country's defense capabilities.