Yevhen Pylypenko, Counsel at EVERLEGAL, spoke at the ІІI Legal Аnti-Сorruption Forum
Yevhen Pylypenko, Counsel at EVERLEGAL, spoke at the ІІI Legal Аnti-Сorruption Forum
Yesterday in Kyiv, the III Legal Anti-Corruption Forum took place, organised by Yurydychna Praktyka Publishing.
Yevhen Pylypenko, Counsel at EVERLEGAL and Attorney-at-Law, delivered a presentation on corruption risks in procurement during martial law. Yevhen highlighted a widespread practice: “procurement equals entry into the Unified Register of Pre-Trial Investigations (ERDR).”
- More details about the session at the link.
“The legal community needs to consolidate, as only together can we address the problem that exists. We hope that the anti-corruption sector will hear these concerns and pay attention to them. When addressing law enforcement, it is important to stress that entries into the ERDR should be made only in cases involving real corruption risks. When addressing arbitrators, and understanding the pressure they face, we emphasise that it is crucial for us to be treated equally with the prosecution,” — Yevhen Pylypenko.
Yevhen also outlined the most common procurement risks:
- Using customs data to determine average market value: A customs declaration may show goods worth USD 1 million, while the tender result shows USD 3 million. Investigators may allege an artificial overstatement of USD 2 million. However, after importation a chain of processes occurs: configuration adjustments, logistics costs, insurance, etc.
- Using the “tax block” when registering ERDR entries: When tax invoices are registered, authorities receive all the information, but the movement of tax invoices has never reflected either the real value or the factual substance of operations.
- The most problematic area — average market prices: To determine these prices, investigators send several requests to companies or use figures from retail marketplaces. However, the only reliable source for determining average prices for public procurement is the Prozorro platform.
For example, a laptop may cost three times less on OLX than on Prozorro, but the cheaper laptop was imported without customs control, without paying taxes, and without proper documentation. Such a seller would not be able to operate on Prozorro.
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