Archive for October 19th, 2016


An impressive fraud even by the standards of City Hall Odessa

October 19, 2016

Unusually before a reader sallies forth into this entry, your author would recommend reading yesterday’s entry which by pure coincidence is very relevant to this one.

Particular attention is drawn to Mr Dubov, his control over Lithuanian company UAB Naster, and the patrons and puppets surrounding him – “It must therefore be clear to a reader why Invest Group have decided to circumvent the local system and appeal directly and publicly to the Prosecutor General when faced with yet another corporate raid by Mr Dubov (via a shell company called UAB Naster registered in Lithuania if Mr Lutsenko needs a place to start and work back from).”


“As any occultist will say “As above, so below”.  If Ms Tymoshenko, Alexander Yanukovych and Mr Turchynov (among others) have all been (and perhaps still are) the “above” – then who and what constitutes the “below”?  Corporate raiding is a “dark art” in Ukraine after all.

If persistent and informed whispers are in any way accurate, then the exact construction of that local protection is divided between the political and the legal.  It would perhaps, if whispers be true, compromise politically of Messrs Krotyk, Kmyrenko, Shyvalov, Shamilov, Deide, Lutsenko (I), and Ms Syslova and Kuzel, whilst influencing the legal would be Mr Babenko, Mr Mazark with the SBU, the police and prosecutors by Mr Podolev, and Mrs Podoleva the courts.”

It is also to be hoped that among the readers of this entry, those from the World Bank and EBRD are among them and have pause for thought by the end of the entry.  If not, perhaps the usual diplomatic IPs will bring this entry to their notice.

At the beginning of the year, Lithuanian company UAB Naster (Mr Dubov) acquired via a City Hall auction (a reader will note the deliberate absence of the word “won”) a parcel of land known locally as “The Edge” and the large building thereon for UAH 11.5 million.

On 19th October, City Hall agreed to buy “The Edge” (back) from UAB Naster (Mr Dubov) for UAH 185 million – more than 16 times what Naster (Mr Dubov) paid for it just over 7 months ago.


Clearly neither land nor building thereon, despite some refurbishment, has appreciated 16 times during that extremely short time frame.

City Hall has bought “The Edge” or “Development of the Elites” as UAB Naster has reframed/renamed it as the location to now centralise all City Hall departments.  City Hall considered no other options for relocation.  A long standing (and necessary) plan to centralise will be achieved – via what is in all likelihood an equally long standing prima facie criminal conspiracy.

The concept of placing all City Hall departments and services under on (fraudulently expensive) roof is of course not in question.  It is a good and necessary development for both City Hall and the local constituency when it comes to functionality and usability.

Indeed a proud (and in all probability now richer) Mayor Trukhanov stated “to concentrate all structural units of the city council in one building – it is a normal European practice.”   Quite – except that normal European practice doesn’t involve a Mayor renowned for organised criminality and mafia connections having his City Hall buy a property from a renowned corporate raider and criminal associate who bought the very same asset only a few months ago from City Hall at 1/16th of the price.

City Hall would have a reader to understand that the World Bank and EBRD will now finance equipping this asset acquired via criminal conspiracy and fraud.  After all by the time kick backs, and tributes are all divided horizontally and vertically from the grotesque spread on this nefarious deal, there probably isn’t the money left in the City budget to equip its newly acquired premises.

Further, whilst the centralising of all City Hall departments within “European City Hall”, along with the creation of an integral one-stop-administrative shop probably saves a small fortune in heating and maintenance costs across a sizable number of soon to be vacated city owned properties in the centre, a reader will question what will actually happen to those City owned premises?

This perversely impressive brazen fraud and criminal conspiracy simply cannot stop now when further and obvious opportunity still presents itself.  Cynically whilst the least attractive vacated City Hall real estate may be leased/rented, the reader will probably, and no doubt rightly with the passage of time, arrive at the conclusion that those involved in this blatant fraud will sell the prime centrally vacated property on the cheap to each other and then trumpet “gains to the City budget”.

Undoubtedly there will be no repercussions.  President Poroshenko has no real alternatives to Mayor Trukhanov (who will remain reasonably loyal as long as he can run amok criminally) so the Presidential Administration in no hurry to remove him, and clearly as yesterday’s entry makes plain, Mr Dubov has patronage (and puppets) too.

Irrespective of the $ figures actually involved, the sheer brazenness of this fraud and criminal conspiracy is impressive – even for Odessa which is well accustomed to such shenanigans.

%d bloggers like this: