War-hit Kyiv hospital is scrutinised over reconstruction effort

[August 16, 2024]  By Dan Peleschuk

KYIV (Reuters) - After a Russian missile tore through Ukraine's largest children's hospital last month, fundraiser Yevhen Vember sprang into action, marshalling more than $9 million for speedy repairs.

Soon, however, a tender for construction work at the Okhmatdyt hospital in Kyiv that his organization held was cancelled after an investigative report by a prominent journalist suggested the contest had been rigged, sparking an outcry.

In an interview with Reuters, Vember denied wrongdoing. He said the Okhmatdyt charity fund he leads held the tender in order to be transparent and had hired outside legal and technical experts to vet and recommend potential winners for the hospital to choose from.

No money had been spent but the episode is another sign of growing public intolerance for perceived corruption in Ukraine amid a 30-month-old Russian invasion that is sapping lives and resources.

It also highlights the level of scrutiny that will likely accompany donor-funded reconstruction projects as Ukraine seeks to rebuild from the war.

Health Minister Viktor Lyashko said he had asked police to review the hospital tender for signs of illegal activity. No investigations have been announced yet or charges brought.
 

Lyashko also announced a new tender would take place, and tightened oversight, though the delay could mean work will not be completed before winter.

The July 8 strike on Okhmatdyt, which killed two, shocked the nation with images of wounded children fleeing the scene and bloodied doctors digging through debris.

Donations flowed in from ordinary Ukrainians and some of the country's top businesses, including to Vember's charity, which has raised critical funds for vulnerable children since early in the war.

MINISTRY PANEL

The private tender to rebuild a damaged smaller building at the hospital appeared encouraging because it made public the 14 companies that bid, said reporter Yuriy Nikolov, of the online outlet Nashi Hroshi (Our Money), which investigates suspected graft.

But he said he was concerned when the winner, announced by the hospital on July 31 with a cost estimate of around $7 million, was a firm with few reported resources and the third-highest estimate. He said he believes it was chosen over worthier bids in a closed-door process.

A day later, Nikolov published a story questioning the move. He did not allege specific criminal wrongdoing.

Lyashko, the health minister, announced the next day the tender would be cancelled after an outburst of public criticism, including from influential figures.

"We will follow this very closely, because it looks like total abuse and taking people for complete idiots," wrote Ihor Lachenkov, one of Ukraine's most popular bloggers.

The Health Ministry has established an advisory council of activists, donors and other public figures, which it said would keep track of the hospital reconstruction process. The new tender will be held on a government platform.

A emergency service worker is suspended above the blast site following a Russian missile strike on the Okhmatdyt Children's Hospital, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 9, 2024. REUTERS/Thomas Peter/File Photo

"We not only prevented them from stealing in a one-off act... but we showed that it's dangerous to behave that way in general," said Nikolov.

Vember said of his scuppered tender that the money would have been released only after the cost estimates were approved by a comprehensive government assessment, and that other contenders had been ruled out as legally questionable.

"We tried to do something good, and quickly," he said. "Unfortunately, it turned out differently."

HIGH EXPECTATIONS

Vember also said he did not anticipate the fierce public reaction, and believes the fund's reputation has been tarnished by unfair allegations that struck an emotional chord with the public.

"Morally, I'm exhausted from this story," he said, leafing through stacks of tender documents. "But our task... is to listen to society, and to do things the way society demands."

Authorities have stepped up their fight against corruption since Russia's invasion, a key requirement for Kyiv to eventually join the European Union. Ukraine ranked 104th out of 180 countries in Transparency International's latest Corruption Perceptions Index.

Nikolov said "society has shown its combat readiness" when it comes to monitoring for signs of potential wrongdoing. His probe into inflated Defense Ministry procurement in January 2023, which officials denied at the time, helped lead to a government shake-up by President Volodymyr Zelenskiy.

International donors are also watching closely as they send billions of dollars in aid and recovery funds.

Okhmatdyt has continued working, with surgeons having carried out more than 400 operations over the past month, hospital general director Volodymyr Zhovnir told Reuters.

Speaking inside the hospital's main building, whose facade is pockmarked with blown-out windows, Zhovnir took pride in the staff's resilience and described Nikolov's report as an "information attack" that compromised reconstruction efforts.

Zhovnir, who said the tender winner was selected based on the fund's recommendations, also added that he could have put more guardrails in place at the outset to preempt any potential concerns from the public.

"Maybe I needed to be significantly tougher in terms of being public about what we were doing."

(Reporting by Dan Peleschuk; Editing by Frances Kerry)

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