Ukraine's State Management of Affairs, a government body in charge of real estate and vehicles provided to incumbent public officials, is planning to sell a number of luxurious villas near Kyiv.
The announcement was made by the state agency’s chairman, Sergiy Averchenko, during a press conference on April 11.
According to Averchenko, more than 20 former top government officials live in state-owned villas, although such state-owned property is supposed to be provided only for those currently in office.
The list includes former President Viktor Yushchenko (2005-2010), ex-prime ministers Vitaliy Masol (1994-1995) and Vitold Fokin (1991-1992); parliament speakers Oleksandr Moroz (1994-1998, 2006-2007) and Ivan Plyushch (1991-1994, 2000-2002).
“We asked some of them to refuse from receiving government subsidies for paying the utility bills for their villas, which would save at least Hr 8 million for the state budget,” Averchenko said.
The state agency is trying to find a legal way to transfer these assets to the State Property Fund’s jurisdiction in order to sell them, he added.
As for now, the agency owns 95 villas in Kyiv’s elite outskirts – Koncha Zaspa (68 villas) and Pushcha-Vodytsya (27 villas). Moreover, the list of luxurious assets includes six airplanes, two helicopters, 150 cars, several health centers, previously accessible only for the officials, and some major hotels – Dnipro, President Hotel and Ukraina in Kyiv.
“We have found a lot of fraud regarding these assets,” Averchenko said.
Every new chief of the State Management of Affairs (known by its Ukrainian acronym DUS, which stands for Derzhavniy Upravleniya Spravom) usually takes the property away from the previous owner and sells them to the next one, creating corrupt schemes reaching hundreds of millions of hryvnias, he said.
“We must keep some villas and residences under state property to hold official receptions of foreign guests,” Averchenko also emphasized.
However, Averchenko is not sure about future of Mezhyhirya – the extremely glamorous, billion-dollar estate of overthrown President Viktor Yanukovych. The disgraced former Ukrainian leader said that he had paid $3.2 million, although experts say its real price is much higher.
On Feb. 23, the Verkhovna Rada passed a law that could lead to the transfer of Mezhyhirya to state ownership, although the transfer has not occurred yet, Averchenko explained. As soon as it is done, government is going to launch a public contest for the best idea on how to use this property.
DUS expenditures for 2014 year are approved at $73 million, down 25 percent from the previous year. Averchenko has already laid off 10 employees of 160 previously working at the state agency and is going to let 10 more go.
This is a reflection of austerity measures approved by the government of interim President Oleksandr Turchynov and Prime Minister Arseniy Yatsenyuk.
International creditors strongly recommend that Ukraine to cut the budget find additional sources of revenue in order to improve the country’s dire financial condition and receive a package of financial support.
Earlier, Finance Minister Oleksandr Shlapak announced the sale of 1,500 state-owned vehicles, including 1,132 belonging to the central government.
Kyiv Post staff writer Vladyslav Golovin can be reached at [email protected].
