High Anti-Corruption Court Orders NABU to Open Case on Mayor Sadovyi’s Abuse

We are sure that this time the case against “Red”, as Sadovoy is popularly called, will not end with anything, because he has been a hidden agent of NABU for many years. And they don’t give up! This explains why he still hasn’t been punished for his numerous and brazen crimes!

At the same time, the facts of blatant and numerous violations by Sadov during his 20 years as mayor of all laws, resolutions of the Cabinet of Ministers and other state regulations, as well as principles and norms of integrity were so many and in such amounts that they cannot be counted. The scale of Sadovoi’s crimes and abuses can be estimated even on the example of one of the episodes – regarding the illegal sale of a plot of land in the industrial zone “Ryasne-2” – all this is listed in detail and written down in the Reference.

certificate

1. Officials of the Lviv City Council violated the procedure for approving the tender documentation for determining the management company of the industrial park.

In accordance with the regulations on the conditions of the competition, Appendix No. 2 of the regulations on the conditions of the competition was approved by the resolution of the LMR 2567 dated 18.07.2013, clause 3.2. The tender documentation is developed and approved by the Authorized Body together with the Tender Committee and approved by the Standing Committee on Land Use, the Standing Committee for Monitoring the Effectiveness of City Development Programs and Council Decisions, as well as the Standing Committee on Deputies’ Activities and Legitimacy in accordance with the decision of the tender initiator before the tender is announced.

Tender documents are approved only by the decision of the commission.

2. Officials of the Lviv City Council determined other requirements for the tender documentation for the definition of the management company of the industrial park than those established by Resolution of the Lviv City Council No. 2567 of March 18, 2013.

In accordance with the regulations on the conditions of the competition, Appendix No. 2 of the regulations on the conditions of the competition was approved by the resolution of the LMR 2567 dated 18.07.2013, clause 6.2. The registration fee is 15,000 hryvnias, and the tender documentation is 10,000 hryvnias. In addition, the requirements regarding the implementation period, implementation conditions, as well as the amounts of necessary capital investments and planned revenues to the budget have not been met.

3. Officials of the Lviv City Council violated the terms of the competition to determine the management company of the industrial park, which led to the impossibility of participation of other persons in the competition, and the competition was held with 1 participant.

Tender documentation was approved on May 5, 2015, and the deadline for accepting proposals is June 7, 2015.

4. The winner of the competition submitted the tender documentation, which did not fully meet the tender requirements for the tender documentation for the definition of the management company of the industrial park.

Since the applicant was created only on  May 22  , 2015, that is, 15 days before the end of the competition. In addition, it is necessary to check when the subject received the tender documentation.

5. The mayor of Lviv (personally) signed the contract on the creation and operation of industrial park No. 1 dated June 26, 2015, which did not meet the requirements of the industrial park concept established by Resolution No. 2567 of the Lviv City Council dated March 18, 2013.

Agreement on the creation and operation of industrial park No. 1 dated June 26, 2015 in clause 2.4. added the right of the Management Company to purchase the plot of land after the construction of the object with an area of ​​10,000 square meters, although in accordance with the requirements of the concept of the industrial park established by Resolution No. 2567 of the Lviv City Council dated March 18, 2013, only rent was provided for the entire period of operation of the industrial park.

6. The requirements for the winner of the competition to determine the management company of the industrial park were changed after the winner was determined.

Agreement on the creation and operation of industrial park No. 1 dated June 26, 2015 in clause 2.2. provided for archaeological research, which was not carried out, and compensation for losses of agricultural production, which were paid for by the local budget, causing damage in the amount of more than 1.5 million hryvnias.

7. The winner of the competition, Citypark Lviv Limited Liability Company, did not fulfill the requirements of the competition before the development of the land plot, in particular:

   — no archaeological research has been carried out;

   — the development of the project for removal of the fertile layer has not been carried out;

   — compensation for losses of agricultural production has not been carried out.

8. The requirements for the winner of the competition to determine the management company of the industrial park were changed after the winner was determined.

The requirements for the competition were approved by LMR Resolution 2567 dated 07/18/2013, however, after the approval of the terms of the contract by LMR Resolution 5029 dated 08/27/2015, LMR Resolution 5146 amended the previous resolutions and paid agricultural losses from the city budget.

1. Officials of the Lviv City Council violated the terms of the competition, and at the expense of the budget of the city of Lviv, expenses for the compensation of agricultural losses in the amount of more than 1.5 million hryvnias were incurred. which is a loss of the local budget, since the conditions of the competition provide for the payment of these costs by the winner of the competition for determining the management company of the industrial park.

Described above.

2. Officials of the Lviv City Council violated the order and procedure of drawing up and approving the land management project regarding the allocation of a plot of land for the creation of an industrial park did not comply with the legislation (violations when forming and changing the purpose of the plot of land; discrepancy of the area of ​​the plot of land in the resolution of the Lviv City Council of 27.12.2012 N 2050 “On the approval of the location of the land plot and the granting of a permit for the development of a land plot for the creation of an industrial park in the city of Ryasne-2; the lack of notarized consent of land users; the irrelevance of the certificate statistical reporting; lack of calculation of agricultural production losses in the land management project);

Contrary to Art. 50 of the Law of Ukraine “On Land Management”  in the documentation there is no written consent of the landowner (land user), certified by a notary, or a court decision, a certificate from the state statistical reporting on the availability of land and its distribution by land owners, land users, lands, calculation of the amount of losses of agricultural and forestry production (in cases provided by law).

The executor of land management works and officials of the Lviv City Council violated the norm  of Art. 50 of the Law of Ukraine “On Land Management”  regarding the composition of land management documentation during the preparation and approval of the land management project regarding the allocation of a plot of land for the creation of an industrial park.

The terms of reference for project development, which must be approved by the customer, do not contain the name of the official authorized to sign such documents and the date of approval. The Technical Specification provides for an approximate land plot area of ​​22.6 hectares, which corresponds to Lviv City Council Resolution No. 250 of 12/17/2012, while the project is being developed on an area of ​​23.4913 hectares. There is no justification for the increase in area as part of the project, no changes were made to the resolution of the Lviv City Council dated 17.12.2001 No. 250.

The land management project does not include the act of acceptance and transfer of boundary marks for storage, there is only the act of establishing and showing the boundaries of the land plot from 2013, which does not comply with the legislation and does not contain the date of its compilation. It is not specified with which geodetic instruments the measurements were made, with what accuracy.

It is recorded that the boundary and configuration of the land plot is indicated in the words of the land users, the boundaries are shown in kind to the landowner, who has been notified of the prohibition to move the established boundaries of the land plot without the knowledge of the Dezhzemagentstva department in the city of Lviv, Lviv region.

The inspection report states that the users of adjacent land plots have not filed any claims regarding the boundaries of the land plot, but their signatures are missing on the report, which makes it impossible to confirm this fact. In addition, the act was not signed by a representative of the district (city) department (management) of land resources of the Derzhkomzem of Ukraine, which violated clause 1.14  of the order of the Derzhkomzem of 04.05.99 No. 43 “On approval of the Instructions on the procedure for drawing up, issuing, registering and storing state acts on the right of private ownership of land, the right of collective ownership of land, the right of ownership of land and the right of permanent use of land, contracts for the right of temporary use of land (including on the terms of lease) and land lease contracts” , in the edition valid until 03.07. 2013

It is noted that according to the plot location scheme (available in the land management documentation), the approximate location of the plot of land is indicated, but it is not included in the planning and cartographic materials that set the boundaries of the city of Lviv. In addition, the layout diagram lacks the signatures of the persons who made this copy, and information about the document from which this copy was made (the diagram). As part of the land management project, there is no cadastral plan of the land plot, an act of transfer in kind (to the locality) of the boundaries of protection zones, sanitary protection zones, sanitary protection zones and special land use regime zones if they are available (in the case of the formation of a land plot), materials for transferring the boundaries of land plots in kind (on the area, in the case of the formation of a land plot).

The conclusion of the Department of the State Land Agency in Lviv dated June 26, 2013 No. 40/01-15/2292 approved the land management project regarding the allocation of land for the management of natural resources and regulation of land relations to the Department of Urban Planning of the Lviv City Council on the condition that agricultural production losses are calculated. However, the norms of the current legislation at the time of project approval do not provide for the possibility of project approval on the condition that the person who is responsible for monitoring the fulfillment of such conditions is not determined, including the loss of agricultural production.

The conclusion on the approval of the land management project regarding the allocation of a land plot of the State Land Agency department in Lviv, Lviv region dated 06.26.2013 N 40/01-15/2292, which is part of Project No. 1, is signed by the deputy head of this department and sealed. At the same time, the technical task under N 629 for the preparation of a land management project regarding the allocation of a plot of land for the creation of an industrial park in the city of Lviv was issued by the department of the State Land Agency in the city of Lviv, Lviv region, signed by the deputy head of this department. Clause 10 “Other conditions” of the technical task under N 629 required the calculation of agricultural production losses in accordance with the procedure established by law.

The opinion of experts based on the results of land management expertise dated 07/27/2017 No. 8186/17-41, compiled by the Kyiv Research Institute of Forensic Expertise (KNDISE) of the Ministry of Justice of Ukraine, which states that the land management project regarding the allocation of land for the creation industrial park of the city of Lviv approved by the resolution of the Lviv City Council dated 18.07.2013 No. 2567, does not meet the requirements of land legislation and other regulatory documents on land management and land use in force on the date of its approval.

In particular, the Project No. 1 lacks mandatory documents and information in this case: an up-to-date certificate from the state statistical reporting on the availability of land and its distribution by land owners, land users, and land; materials provided for in clauses 4.4, 7.2, 7.4 of the Instructions for topographical surveying at scales of 1:5000, 1:2000, 1:1000, and 1:500 (GKNTA-2.04-02-98), approved by the order of Ukrgeodezkartografiya dated 04.09.98 N 56 , which provide for the types of materials of geodetic surveys that must be prepared based on the results of ОР8-surveying, phototheodolite surveying and tacheometric surveying.

It is noted that during the development of Project No. 1, the certificate of the Land Resources Office in the city of Lviv of the State Agency of Ukraine dated 17.10.2007 No. 40/3/22 could not be used as a certificate from the state statistical reporting on the availability of land and its distribution by land owners , land users, land.

In the explanatory note to Project No. 1, it is stated that the land plot with an area of ​​23.4913 hectares, which is proposed for allotment, belongs to the land of industry, transport, communication, energy, defense and other purposes by category. At the same time, the letter of the Department of Architecture of the Lviv City Council dated June 7, 2013 No. 2401-237 states that the land allocated for the creation of an industrial park in the city of Lviv is located within the territory of industrial enterprises. Clause 1 Clause 3 of the Lviv Industrial Park Development Concept, approved by Lviv City Council Resolution No. 1734 of 09/20/2012, states that the land plot is located in an industrial zone. At the same time, the conclusion of the Department of the State Land Agency in the city of Lviv, Lviv region dated 26.06.2013 No. 40/01-15/2292 states that the land plot is allocated for the creation of an industrial park in the city of Lviv at the expense of agricultural land.

Also, as part of Project No. 1, there is a calculation of agricultural production losses, approved by the first deputy head of the Main Department of the State Land Agency in the Lviv region on 07/24/2013.

As part of Project No. 1, there is conflicting information regarding the category of land, at the expense of which the indicated project with land management envisages the allocation of the land plot.

3. The land plot was sold without following the tender procedure;

The chief specialist of the department for the organization of unscheduled inspections on the implementation of state control over the use and protection of lands of the Department of Control over the Use and Protection of Lands of the State Service of Ukraine for Geodesy, Cartography and Cadastre on the basis of the letter of the General Prosecutor’s Office of Ukraine dated 09.03.2017 N 01/1/2- 36634-17 and in accordance with the order of the State Geocadastre of Ukraine dated 17.03.2017 N 9-DK (act dated 31.03.2017) it was established that the sale of a land plot with an area of ​​23.4913 hectares, cadastral number 4610137500:12:003:0006, was carried out in violation Article 134 of the Land Code  regarding the obligation to sell land plots of state or communal property or rights to them on a competitive basis (land auctions).

According to the results of the inspection regarding compliance with the requirements of land legislation, conducted by the chief specialist of the department for the organization of unscheduled inspections on the implementation of state control over the use and protection of lands of the Department of Control over the Use and Protection of Land of the State Service of Ukraine for Geodesy, Cartography and Cadastre on the basis of a letter from the General Prosecutor’s Office of Ukraine from 03/09/2017 N 01/1/2-36634-17 and in compliance with the order of the State Geocadastre of Ukraine dated 03/17/2017 N 9-DK, a deed dated 03/31/2017 was drawn up, which states that the sale of a plot of land with an area of ​​23.4913 ha, cadastral number 4610137500:12:003:0006, carried out in violation of  Article 134 of the Land Code of Ukraine  regarding the obligation to sell land plots of state or communal property or rights to them on a competitive basis (land auctions).

In the register of property rights, there is no information about the presence within the land plot of 23.4913 hectares, cadastral number 4610137500:12:003:0006, of any real estate objects: buildings, structures, objects of unfinished construction, etc.

The provisions of clause 2  of Art. 127 of the Civil Code of Ukraine , that the sale of the land plot had to be on a competitive basis in the form of an auction, in accordance with the procedure established by  Chapter 21 of the Civil Code of Ukraine . And according to the provisions  of Art. 11 of the Law of Ukraine “On Industrial Parks”  a plot of land could only be leased. The norms of the current legislation in the field of creation and operation of industrial parks on the territory of Ukraine do not provide for the purchase of a plot of land for the creation of an industrial park from the lands of state or communal ownership by the management company of this park. In addition, the concept of the industrial park of the city of Lviv provided for the receipt of rent during the entire period of activity of the industrial park. However, the mayor of Lviv unlawfully added requirements regarding the possibility of buying a plot of land to the contract on the creation and operation of industrial park No. 1 dated June 26, 2015.

4. The value of the land plot was underestimated during the purchase, which caused the local budget to receive funds in the estimated amount of UAH 40 million;

Having considered the application of the Limited Liability Company “CityPark Lviv” dated 14.12.2015 (registered in the Lviv City Council on 14.12.2015 under N 2-23951/АП), taking into account the land lease agreement registered in the Lviv City Council on 15.09.2015 . according to N Sh-3692 (book of registration of land lease contracts Sh-4), extract from the State Register of real property rights on the registration of other real property rights dated September 17, 2015, index N 44046500, contract on the creation and operation of an industrial park. dated 26.06.2015 No. 1, the resolution of the city council dated 01.10.2015 No. 5146 “On making changes to the resolutions of the city council dated 18.07.2013 No. 2567 and dated 27.08.2015 No. 5027 and granting permission to hold expert monetary valuation of the land plot for sale by “CityPark Lviv” LLP on St. T. Shevchenko, (industrial zone “Ryasne-2″, plot 1-1)”, guided by  Art. 144 of the Constitution of Ukraine , Art. Art.  127 ,  128 of the Land Code of Ukraine , clause 34 clause 1  of Article 26 of the Law of Ukraine “On Local Self-Government in Ukraine” ,  the Law of Ukraine “On Industrial Parks” ,  Resolution of the Cabinet of Ministers of Ukraine dated 22.04.2009 N 381 “On Approval of the Procedure for Settlements with Installment Payments for the Acquisition of Land Plots of State and Communal Property”  (with amendments ), by the resolution of the city council of 07/26/2012 N 1675 “On the approval of the Regulation on the preparation, organization, conduct and registration of the purchase and sale of ownership or lease of land plots in the city of Lviv” (with amendments), with the aim of ensuring the effective use of land city ​​fund, implementation of the development budget of the city budget of Lviv city council on 17.12.2015 adopted a resolution on the sale of the land plot on the street to “CityPark Lviv” LLC. T. Shevchenko, industrial zone “Ryasne-2”, plot 1-1. By the specified resolution, the Lviv City Council approved the report on the expert monetary assessment of the value of the land plot; sale price UAH 52,522,246.00 indicated the area of ​​the land plot of 23.4913 hectares (cadastral number 4610137500:12:003:0006) on the street Shevchenko (Ryasne-2 industrial zone, plot 1-1) at the expense of industrial, transport, communications, energy, defense and other land for the creation and operation of the Ryasne-2 industrial park; “CityPark Lviv” LLP has rescheduled the amount of payments for the land plot for a period of 24 months from the moment of signing the land plot purchase and sale agreement, subject to the payment of 50 percent of the land plot value.

This decision also terminates the land lease agreement registered in the Lviv City Council on September 15, 2015 under No. Sh-3692 (book of records of registration of land lease agreements Sh-4), extract from the State Register of real property rights to immovable property on the registration of another real right from 17.09.2015, index N 44046500, from the moment of payment of 50 percent of the value of the land plot and to cancel the state registration of the right to lease the land.

On 28.12.2015, the Lviv City Council (the seller) and the Limited Liability Company “CityPark Lviv” (the buyer) concluded a land plot purchase and sale agreement, registered in the register under No. 128 and certified by a private notary of the Lviv City Notary District Peleh O.Z .

The subject of the contract is the purchase by the buyer of a land plot with an area of ​​23.4913 hectares, located at the address: Lviv, str. T. Shevchenko (industrial zone » ADDRESS_1; cadastral number 4610137500:12:003:0006 (clause 1.1 of the contract).

The subject of the contract according to the Extract from the State Land Cadastre about land plot N НВ-4602970632015, issued by the state cadastral registrar of the Department of State Geocadastre in the city of Lviv, Lviv Region on 22.12.2015 by land category: land of industry, transport, communications, energy, defense and other purpose; purpose: 11.02 for placement and operation of main, auxiliary, auxiliary buildings and structures of enterprises of processing, machine-building and other industries; type of use: creation of an industrial park of the city of Lviv; cadastral number 4610137500:12:003:0006, area 23.4913 hectares (clause 1.3, clause 1.4 of the contract).

In accordance with clause 1.5. the land plot indicated in the contract is transferred with restrictions, namely: to use the land plot for its intended purpose and to comply with the requirements of the conclusion of the Department of Architecture of the Department of Urban Planning of the Lviv City Council dated September 25, 2015, N 2401-1063.

Clause 1.6 of the contract states that according to the Extract from the State Register of Real Property Rights dated 05/13/2014 No. 21565908, the land plot that is the subject of this contract is communally owned by the territorial community of Lviv.

In accordance with clause 2.1. contract, the value of the land plot in accordance with the resolution of the Lviv City Council dated 17.10.2015 No. 24 and the report on the expert monetary valuation of the land plot performed by appraisers is 52,522,246 (fifty two million five hundred twenty two thousand two hundred forty six) UAH zero kopecks.

I consider the resolution of the Lviv City Council No. 24 dated 17.12.2015, by which a decision was made to sell a plot of land to Citypark Lviv Limited Liability Company illegal, and the contract of sale of a plot of land with an area of ​​23.4913 hectares, cadastral number 4610137500, invalid: 12:003:0006, concluded between the Lviv City Council of the Lviv Region and the Limited Liability Company “CityPark Lviv”, certified by the private notary Peleh O.Z. 12/28/2015, registered in the State Register under No. 128.

According to the opinion of the experts based on the results of the evaluation and land examination dated March 1, 2017 N 19413/16-41, prepared by the Kyiv Research Institute of Forensic Examinations of the Ministry of Justice of Ukraine, which states that the report on the expert monetary assessment of the land plot does not fully correspond the requirements of regulatory legal acts on property valuation and has significant flaws that affected the reliability of the valuation, but can be used for the purpose specified in the report after the flaws are corrected.

Expert monetary assessment of the value of a land plot with an area of ​​23.4913 hectares, located in the city of Lviv, str. T. Shevchenko, industrial zone “Ryasne-2”, plot 1-1, cadastral number 4610137500:12:003:0006, as of 12/14/2015, the amount was determined by experts in the amount of UAH 92,132,585.02. which is 40 million more than the damage to the local budget.

According to the inspection data, the conclusions of the experts established that the land plot was sold to the Limited Liability Company “Citypark Lviv” (the Limited Liability Company “Industrial Park M10”) illegally, contrary to the concept of the development of the industrial park, not on a competitive basis and at an undervalued price.

I consider the resolution of the Lviv City Council No. 24 dated 17.12.2015, by which a decision was made to sell a plot of land to Citypark Lviv Limited Liability Company illegal, and the contract of sale of a plot of land with an area of ​​23.4913 hectares, cadastral number 4610137500, invalid: 12:003:0006, concluded between the Lviv City Council of the Lviv Region and the Limited Liability Company “CityPark Lviv”, certified by the private notary Peleh O.Z. 12/28/2015, registered in the State Register under No. 128.

The contract for expert monetary evaluation of a land plot for the creation of an industrial park with an estimated area of ​​23.4913 hectares was concluded on 22.12.2015 under N 253/15-ЗО-ПИ-Ц between the Department of Natural Resources and Regulation of Land Relations of the Department of Urban Planning of the Lviv City Council and a private by the “Center for Market Research” enterprise, i.e. on the 5th day after the approval by the Lviv City Council of the report on the expert monetary assessment of the value of the land plot on the street T. Shevchenko (“Ryasne-2” industrial zone, plot 1-1) and the sale prices of this plot.

The appraisers’ opinion on the value of the land plot was signed (without specifying the date) by appraisers V. L. Lyubchyk. and Prodan I.P., the value is set at UAH 52,522,246.00. (excluding VAT) per square meter of land plot 223.58 UAH (excluding VAT).

5. The suspension of the calculation of the rent for the land in connection with the illegal purchase  contrary to the concept of the functioning of the industrial park led to under-received funds in the years 2016-2023 in the amount of at least 25 million hryvnias. excluding indexation .  Taking indexation into account, the size of the damage is more than UAH 35 million.

According to the concept of the industrial park, income from the rent from 2016 was expected in the amount of 3.4 million hryvnias annually without taking into account the inflation index. However, the illegal purchase of the plot of land led to the termination of the rental payment.

6. Officials of the Lviv City Council invested money in engineering networks in the amount of more than 5 million hryvnias.

According to the concept of the industrial park, the investment of funds at the expense of LMR in the amount of UAH 14.7 million was foreseen. however, more than 21 million have been invested and illegal financing of private property objects is being extended.

7. The operator  of the industrial  park did not complete the construction of even the 1st stage within the terms set by the contract and the business plan, although the construction of all three stages of the park should have been completed by 2018 .

Nothing has been done regarding the terms of the contract and the development concept, which together with the business plan were mandatory for the Operator of the industrial park.

8. Officials of the Lviv City Council did not carry out quarterly control over the implementation of the business plan, which led to non-revenues in the budgets of all levels in the amount of more than 50 million euros (2 billion hryvnias).

Execution of the business plan, development concept, and contract is a mandatory condition for providing a land plot for lease on preferential terms. Since the operator did nothing for 8 years, although the amount of taxes was declared, this led to the non-flow of funds to the budgets of all levels.

9. According to Art. 150 of the Land Code Particularly valuable lands include: peatlands with a depth of peat more than one meter and drained regardless of depth, peatlands as part of wetlands of international importance. All around the plot of land that was alienated to the Limited Liability Company “Citypark Lviv” is the “Biloghorshcha” peatland reserve. And the depth of the peat is more than 3 meters. And in accordance with the same Article 150 of the Land Code, the peculiarities of the legal regime of land use under peatlands and possible types of their purpose are determined by the Cabinet of Ministers of Ukraine. And the owner of this particularly valuable plot of land should be the state (state property), not Lviv (communal property).

Officials of the Lviv City Council did not take the initiative to terminate the contract on the creation and operation of Industrial Park No. 1 dated June 26, 2015, which actually led to the illegal use of the communal facility by the Limited Liability Company “Citypark Lviv” for 8.5 years.

Failure to monitor the implementation of investment obligations is an illegal behavior by officials of the Lviv City Council. Not only have they not terminated the contract for the purchase and sale of the land plot, they have not filed a lawsuit to terminate the contract on the creation and operation of the industrial park.

Pay additional attention to:

1. The conclusions of the examinations conducted in criminal proceedings No. 42016000000003019 are available in expert institutions. Criminal proceedings based on part of the facts stated in the appeal were investigated by NABU under the procedural leadership of the SAP, however, the criminal proceedings were closed on the 10th day of the war in March 2022.

2. In the court proceedings in case 914/2333/19, the lawsuit was filed by the Deputy Prosecutor General in the interests of the Cabinet of Ministers and was refused due to the fact that the lawsuit was not filed in the interests of the proper plaintiff. (The territorial community of the city of Lviv, after all, the damage was done to them).

3. Today, the Company belongs to the influence group  of Dragon Capital ( Tomas Fiala ) .