• Українською
  • Prime Minister: Corruption schemes entwined in construction sector pauperize communities
    Information and Communication Department of the Secretariat of the CMU, posted 26 September 2018 12:01

    Any corruption schemes that might be interwoven in the construction process in populated areas - from allocation of land plots to breaking the standards of building density and non-payment of taxes – all those are making communities poor and, in fact, robbing people who are investing in construction and paying a high price for low quality square meters. Prime Minister of Ukraine Volodymyr Groysman announced this during the Government sitting with an initiative to build a transparent platform "Transparent State Architectural and Construction Inspection" be included in the agenda. The launch of the platform enables real-time monitoring of the document flow of tenant builders - from filing documents to obtaining permits.

    As the Head of Government noted, such a service would make it possible to make the construction process more transparent.

    "This week I had a frank conversation with leaders of municipal state administrations. We have rather successful examples (urban infrastructure development), but there are problems as well. Large multi-storey buildings are being built, density increases, whilst the land is allotted without auctions, which pauperizes the community. Share contributions are either not paid in full, or fail to be paid at all. And this is worth billions. And this also makes our communities poorer", said Volodymyr Groysman. "They submit the design, and then increase the number of floors, the volumes of the construction, bribe officials and try to somehow get accord regarding putting objects into operation. Various shadow schemes are starting to be created. Who is suffering from that? An average citizen of Ukraine. And we cannot and do not have the right to curry favor with tenant builders to the disadvantage of the whole cities and communities."

    The Head of Government stressed that Ukrainian cities are not built in favour of buildings, but in favour of people who need parks, public gardens, and parking spaces.

    "We have embarked on changing construction standards. My principled position is as follows: construction standards must comply with European standards. Currently real estate in Ukraine costs not less than in Europe, but sometimes you look and see it lacks both aesthetics and conditions for comfortable living. Although the person has already paid money for that", said the Prime Minister.

    Another problem is the attempt to evade payment of taxes on built-up square meters.

    "All over Ukraine housing is being built, but paying taxes for this construction is forgotten. Ukrainians pay market prices per square meter, but the local and state budgets do not get the money. They invented some non-profit organizations and transformed the normal construction process into tax evasion schemes", said Volodymyr Groysman. "I commission the SFS, the State Labor Service to review all builders for payment of taxes and legal employment. People are working on construction - they are unofficial workers. This story must never be tolerated. All services will unite to establish order in this area."

    Meanwhile, according to the Head of Government, on honest tenant builders whose work is transparent and competitive won’t be exerted pressure.

    "The pressure will be only for those who will act outside the law. Everyone must build high-quality structures, being comfortable for people, and pay taxes", summed up the Prime Minister.

    Prime Minister: Corruption schemes entwined in construction sector pauperize communities