Case description
The NABU and the SAPO accuse the Ukrzaliznytsia officer Oleh Zolotariov of organizing the procurement at inflated prices, which caused UAH 9.6 million in losses to Ukrzaliznytsia (UZ).
According to the prosecution, in 2017, UZ announced a tender in which it planned to procure power supply devices for passenger cars. Oleh Zolotariov, head of the Regional Branch of the South Western Railway, allegedly set a requirement for all potential participants in the tender, according to which UZ had to approve the drawings of suppliers' products, and thus distorted the conditions of competition.
A meeting was held at Ukrzaliznytsia with representatives of relevant departments and regional branches to discuss the need to equip railway tracks with power supply systems for heating and cooling passenger cars. Following the discussion, the Regional Branch of the South Western Railway, led at the time by Zolotariov, initiated preparations for procurement tenders.
Individuals associated with Brovary Electrical Engineering Association LLC and Elpo Ukraine LLC, having learned about the upcoming tenders, decided to secure their companies’ participation. Zolotariov, leveraging his official position and connections, facilitated their victory. As chair of the tender committee, he ensured the inclusion of an artificial, discriminatory requirement in the tender documentation—mandatory approval of design drawings. This condition allowed the disqualification of all other bidders.
Despite an official request submitted through the electronic procurement platform to remove this requirement on the grounds that it violated the non-discrimination principle under the Law of Ukraine on Public Procurement, Zolotariov concealed the request from other committee members. As a result, the requirement remained, and only the affiliated companies Brovary Electrical Engineering Association LLC and Elpo Ukraine LLC—were admitted to the tender.
In March 2017, the companies won the tenders with bids of UAH 12.7 million and UAH 9.5 million, respectively. However, according to an internal investigation by Ukrzaliznytsia, there was another market supplier capable of delivering similar equipment for UAH 6 million and UAH 4 million.
The overpriced procurement resulted in losses exceeding UAH 9.6 million. Moreover, the procured equipment was never put into operation, even more than four years after the procurement.
Zolotariov is charged with Article 364(2) of the Criminal Code of Ukraine. The case is still being considered by the High Anti-Corruption Court.
