Ukraine's Cabinet: Vehicle fleet statistics

Author : Vadym Pon'ka

Source : 112 Ukraine

What cars do the Ukrainian officials prefer, and why contracts on state vehicles are concluded without tenders?
20:11, 28 February 2017

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In autumn 2016, a resolution issued by Ukraine’s Cabinet of Ministers "On the effective use of public funds" came into force. The purpose of the document was to force officials and state authorities not to spend like a drunken sailor. Among the key points of economizing was the prohibition to fly charters, buy new cars, and also there were some restrictions to use official vehicles for officials.

After the victory of the Revolution of dignity the Cabinet announced auction of luxury cars, which belonged to Autoenterprise of financial department of the Cabinet. In 2015, 27 million UAH were allocated from the state budget on it. Autoenterprise has 117 vehicles. They are used for the foreign delegations, Secretariat of the Cabinet, government and other enterprises that are under the control of economic and financial department of the Cabinet.

Paragraph 4 of the aforementioned resolution states: "State and other government bodies established by government enterprises, institutions and organizations cannot use state budget funds for more than one car."

So ministries now can use only one official vehicle. But even if you give one passenger vehicle to each minister, head of the Cabinet Secretariat, and the agencies and organizations, there will be 72 cars out of 85 cars and vans. Are the remaining 13 cars servicing used by the foreign delegations?

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However, we noticed that some officials combine their status with economizing the budget. They use their own transport in order to do their job.

Fleet of the Ministers

All the ministers of the current Cabinet fall into two arbitrary categories: those who for various reasons do not use state vehicles, and those who have their own luxury cars, sometimes not even one, still use the provided state vehicles.

Acting Minister of Health is a really unique case. In her declaration she mentioned no cars or other official vehicles. Uliana Suprun said that she uses a taxi at her own expense.

"I do not use state vehicles. This is my money, I can use them as I wish, and I pay for myself," said Suprun.

The richest Minister Pavlo Petrenko refused to use state car in favor of his secretariat.

"The ministry has only one car, in fact I now gave it to my colleagues who are deputies, and the departments that go to meetings. And I use rented cars," said Petrenko. He adds that it is "wrong in principle, and over time this trend must be changed."

Minister of Environment Ostap Semerak spends his ministerial salary to travel by his own car. In his declaration, there are two cars.

"Salary of the minister allows you to buy fuel for the car," reflects Semerak.

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The owner of Lexus, Infiniti, and Volkswagen Yuriy Stetc has not even asked for an official car.

"I do not think that the question of granting another minister with a "Mercedes" is on the agenda; this is just silly," he said.

The press service of Igor Nasalyk reported that he is also using his own car. For example, after his last conference Energy Minister used a car, which belongs to "Ukrenergo".

Foreign Minister Pavlo Klimkin is the only minister who uses state protection. He uses Volkswagen, its cost was 192 thousand UAH.

Among those who use the facilities provided by the state - Defense Minister Stepan Poltorak. His official Lexus.

The vice-premier Ivanna Klympush-Tsintsadze has official car - Volkswagen. In her declaration, she pointed out two new cars: ToyotaRav 4 and Mercedes class.

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"If we claim that we are a country, the high representatives of the state should have and transportation, and driver. If you want someone managed to get a meeting," she said.

Deputy Prime Minister Vyacheslav Kyrylenko also has elite official and private cars. He said that during the first three months in office he used his own vehicles, but the state did not compensate the costs of fuel and maintenance of his own vehicles.

Vice Prime Minister Gennady Zubko, except state vehicles, also uses transport, which belongs to the company of his wife and son. The family has four cars. "I use official car on weekdays, and on weekends I use my own car," he said.

Finance Minister Olexander Danyluk uses state Volkswagen Touareg. According to the declaration, his family has a BMW X5. "If you worked 14 hours a day, you would understand why the MP needs a state car," he explains. He refused to speak on the cost of company car, advising people to make a request to the Ministry of Finance.

In Infrastructure Minister Volodymyr Omelian drives Volvo. He also uses official Toyota Avalon.

"At work, I use official vehicles. This is Toyota Avalon, with 500 thousand kilometers travelled," said Omelian.

Youth and Sports Minister Igor Zhdanov reluctantly says about his car. He has his own Toyota Camry and his own driver.

"The Minister is provided with official transportation. Change the law and then set another question. I have my own transport, which used for two years. And no one compensated money for patrol and maintenance. The car is in an awful condition, so now I drive a VolkswagenPassat 2004," he said.

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Minister of Education Lilia Grynevych uses state Volkswagen Passat.

"I need it just as a workhorse. My schedule is extremely intense, and work of the minister is not limited to sitting in the office. My schedule is extremely tight, so I need a service car," noted Hrynevych.

Interior Minister Arsen Avakov also uses official cars, but his press office did not specify which one. It has just informed on the total fleet of the ministry. It has Toyota Avalon (2008), Volkswagen Phaeton (2011), and Toyota Camry (2013).

Contracts without tendering

"People prosecutors" decided to analyze the agreements concluded between the various ministries and Autoenterprise of the Cabinet. In 2015, it received 27 million UAH from the state budget. It regularly signs contracts with at least five ministries. Average rates: one hour of using car costs about 50 UAH. For example, the Ministry of Education contract amounted to 199 thousand 497 UAH. That is subthreshold. If there were 200 thousand and more, it would require conducting a tender.

"Ideally, the ministry would conduct a competitive bidding, which should work with the private market too, business would provide market prices, create competition, and the best offer with the highest quality and the lowest prices would have won," said Hlib Kanevsky, the expert of anti-corruption Emergency reform package group.

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Thus, the ministries signed contracts without tendering procedure with Autoenterprise of the Cabinet, which in turn works with "Prozorro" and buys goods through this system. Presumably, this model allows ministries to speed up interaction with contractors. But is this model effective in terms of use of public funds?

Ministry of Social entered into a contract with another state enterprise - "TEKHNIK." It has provided business class vehicles, their price per 1 km is almost twice lower than those offered by state-owned Autoenterprise of the Cabinet. Although formally the Ministry of Infrastructure has not done anything illegal, this case is at odds with the policy of budgetary savings.

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