You're reading: Popov: Shady deals under Chernovetsky robbed city coffers of billions of dollars

The Kyiv city administration chief said the capital lost almost $9 billion through fraud and embezzlement during Mayor Leonid Chernovetsky’s time in office.

Losses of almost $9 billion to the city through fraud and embezzlement – that’s the accusation Kyiv city administration chief Oleksandr Popov made about Mayor Leonid Chernovetsky’s time in office in an address to the city council on March 31, a sign that the authorities may be preparing to finally oust the controversial city leader.

Popov said the alleged crimes, which mostly concern sales of land and property at knock-down prices, took place between 2007 and June 2010, causing Hr 70 billion in losses.


They have become billionaires. It is important not to punish just scapegoats but people who managed those massive frauds. Just give us some more time to have everything in order and investigated.”

– Oleksandr Popov, head of Kyiv’s city administration.

Chernovetsky was ousted from his role as head of the city administration last year, remaining in the largely ceremonial role as mayor, with pro-presidential Popov appointed in his place.

Deputies loyal to Chernovetsky claimed ignorance, while a spokesperson for the mayor had no immediate comment.

Leonid Chernovetsky, Kyiv’s controversial mayor.

Popov and his allies had relaxed their battle for power in the city in recent months, but the latest volley against the eccentric Chernovetsky could finish him off, political analysts said, or at least help boost Popov’s popularity ahead of the next mayoral election, scheduled for 2012.

According to Popov, city authorities under Chernovetsky gave away swathes of land in the city and in green zones.

From 2007 to June 2010, the city lost 3,500 hectares of land. When its real value was Hr 75 billion, only Hr 4 billion made it to city budget.”

– Oleksandr Popov, head of Kyiv’s city administration.

“From 2007 to June 2010, the city lost 3,500 hectares of land. When its real value was Hr 75 billion, only Hr 4 billion made it to city budget,” he said.

Municipal property was also leased out and sold at undervalued prices to selected companies, he added.

He also slammed city authorities for allegedly making 3,900 amendments to the city plan to allow construction in historical parts and in places where it could damage nearby buildings and historical sites.

“That is why we have all those controversial constructions which people and experts are protesting against – on Honchara Street, near Teatralna subway station and in other places,” he said.

And the list went on.

Striking a tough-guy pose but occasionally seeming nervous, Popov painted a disastrous picture of communal property flogged for kopecks, including communal drug stores, hospitals and police stations.

Not once did Popov mention the name of Chernovetsky, long accused by critics of massive corruption involving many figures close to him. He practically disappeared from the public eye when Popov, took office in June 2010.

Chernovetsky’s faction in the council, which approved almost all the decisions Popov was attacking, sat looking pale and worried.

The opposition accused Popov of self-promotion.

We were speaking about most of these crimes months and years ago [when the pro-presidential Regions party backing Popov was in a coalition with Chernovetsky,] but there was no reaction from the general prosecutor or anyone else.”

– Tetyana Melikhova, head of the oppositionist Yulia Tymoshenko faction.

“We were speaking about most of these crimes months and years ago [when the pro-presidential Regions party backing Popov was in a coalition with Chernovetsky,] but there was no reaction from the general prosecutor or anyone else,” said Tetyana Melikhova, head of the oppositionist Yulia Tymoshenko faction.

Others demanded Chernovetsky’s resignation and dissolution of the council. “After all those revelations they have no moral authority to rule the city. They have lost whatever trust of Kyivans they had,” said Vitali Klitschko, who heads his eponymous faction.

There was no immediate response from Chernovetsky, but he had previously denied any fraud allegations in a post on his website.

Experts are skeptical that Chernovetsky will be dismissed just yet as the pro-presidential Party of Regions does not have a strong candidate who could win early elections in Kyiv. However, the powerful party will most likely have Popov running for mayor in 2012, when Chernovetsky might become a useful fall guy.

“Arresting Chernovetsky on accusations of fraud could be a good PR stunt ahead of mayoral elections,” said political analyst Volodymyr Fesenko. “Or they might issue a warrant and let him flee abroad.”

Prosecutors claim an investigation is in progress and some court cases have already resulted in land being returned to the city. However, prosecutors declined to comment whether cases against top city officials had been opened.
Popov said he is trying to get back stolen municipal property and promised consequences “for those guilty.”

“They have become billionaires. It is important not to punish just scapegoats but people who managed those massive frauds. Just give us some more time to have everything in order and investigated,” Popov promised.

Kyiv Post staff writer Svitlana Tuchynska can be reached at [email protected].