In the span of three days, the State Fiscal Service and Kyiv’s prosecutor’s office conducted 60 searches for alleged corruption, tax evasion, abuse of office and fraud among Kyiv city officials.
According to the prosecution, the May 11-13 searches were conducted as part of at least nine separate ongoing pre-trial investigations. A total of 11 people were charged, most of whom are current government officials.
Authorities searched Kyiv’s utility services, the Kyiv City Council building and the home of Kyiv Mayor Vitali Klitschko’s top ally, Artur Palatnyi.
One of the nine cases revolves around illegal retail in Kyiv’s underground crossings. A Kyiv Post source in the Kyiv’s prosecutor’s office confirmed that Palatnyi is among the suspects.
Read More: Klitschko’s shortcomings as mayor are easy to see
Klitschko slammed the searches, calling them part of an ongoing attempt to pressure Kyiv’s local authorities.
“What is happening now is pressure on the city authorities and the suppression of local self-governance,” said Klitschko on May 13. “It’s pressure on me personally,” the mayor added.
Ex-lawmaker Palatnyi, who heads Klitschko’s local party UDAR, accused the president’s office of political pressure.
“The goal is predictable — pressure and intimidation, because the UDAR party can fiercely compete during elections,” Palatnyi wrote on Facebook.
The UDAR party is supported by less than 2% of Ukrainians according to the May pollsters. It didn’t compete in the previous elections due to low ratings.
However, Klitschko’s relations with the President’s Office are indeed sour. After President Volodymyr Zelensky took office in May 2019, his staff began to pressure Klitschko to relinquish his post.
After a month-long tug of war, Klitschko kept his seat as the head of Kyiv’s City State Administration, the mayor’s second job.
In October, Klitschko won his third consecutive mayoral election, receiving over 50% of the vote in the first round.
Nine investigations
The searches were conducted in Kyivzelenbud, responsible for the reconstruction of parks and recreation zones, Kyivavtodor, responsible for the city’s road repair and maintenance, and Spetszhytlofond, responsible for repairing the city’s cables.
The searches were also conducted on the premises of the Kyiv City Council, the city’s social policy department and Palatnyi’s apartment.
The prosecution alleges fraud, corruption and tax evasion that cost the city millions.
For example, law enforcers are looking into a possible Hr 30 million ($1.1 million) tax evasion scheme during the reconstruction of Kyiv’s parks, alleged fraud and tax evasion during road repairs in Kyiv that cost the state at least Hr 18 million ($650,000) in unpaid taxes, and alleged theft of Hr 10.5 million ($400,000) during cable repairs.
Local officials have also been accused of overcharging the state budget for hygiene products, costing the state Hr 13.5 million ($500,000).
Furthermore, according to the prosecution, a group of 20 current and former local officials gained over Hr 5 million ($185,000) each month from illegally leasing Kyiv’s vendor stands near metro stations and in underground passes to small business owners.
According to the Kyiv Post source, Palatnyi is being investigated as part of this group.
Klitschko denied all allegations.
“I have always emphasized that our work has zero tolerance for corruption,” said Klitschko.
Corruption and politics
Supporters of Klitschko are saying they’re victims of political pressure, while the mayor’s opponents say that Kyiv has become a hotbed for corruption.
Both parties have arguments to back up their claims.
Klitschko’s mismanagement and ties to construction moguls have been a constant theme of the mayor’s reign. On the other hand, Zelensky’s office sought to remove Klitschko from office, publicly attacking the politician.
In 2019, the Specialized Anti-Corruption Prosecutor’s Office charged Klitschko’s close friend, construction mogul Maksym Mykytas, with illegally seizing property meant for members of Ukraine’s National Guard.
According to the prosecution, ex-lawmaker Mykytas gained over Hr 81 million ($3.3 million) as a result of illegally obtaining a land plot in downtown Kyiv.
In September 2017, Schemes, the investigative unit of Radio Free Europe/Radio Liberty, caught Klitschko traveling on a private jet with Mykytas. Klitschko later claimed that he ran into Mykytas on the streets of Naples while on vacation and that the lawmaker offered him a flight back to Kyiv.
Mykytas soon testified in court that he gave a $600,000 bribe to employees of the High Anti-Corruption Court. He alleged that President Volodymyr Zelensky’s deputy chief of staff Oleh Tatarov acted as an intermediary for the bribe.
Tatarov denied guilt.
