untouchable tender mafias

A nice piece on the re-emergent Julia Tymoshenko which gives us a clue as to why Yanukyovich became unsupportable:

Vyacheslav Konovalov, a criminology researcher, explains that “the initial idea behind ‘Dear Friends’ was a transparent system for monitoring public finance in place of the Soviet model. To do so, a system of tenders and a tender chamber were set up. Specially “favored” people with Western degrees were appointed to control the system. Soon enough the initiative produced many thirty year old ministers and deputy ministers, dubbed at the time ‘Kinder Surprises.’” They are an “untouchable tender mafia” presiding over a system where brokers enjoy kickbacks of thirty, fifty, up to seventy percent.

The tenders made it easy for Yulia and her allies to enjoy luxurious lifestyles without actually owning anything on paper. According to court documents, by the end of her trial, the only property they could confiscate from Yulia was a modest apartment in Dnepropetrovsk. But Yulia, as many others political elites in Ukraine spent much of her time in police-protected, luxurious villas.

"Untouchable tender mafia" is such an excellent phrase, even if the sense is just 'contracts'. Amusingly, Y and his people couldnt get her on any of these things because they were too involved  themselves, so they had to semi-fabricate charges against her, which in turn helped the gas queen reinvent herself as a martyr. Anyway, Yanukyovich:

The Yanukovych family has gone even further on a larger, more grotesque scale. According to the PEP Watch anti-corruption center, the net-worth of Yanukovych’s son Oleksandr has gone from 7 to 510 million UAH since 2010. His dacha in Mezhyhirya, showed off to the public on February 22nd, was a rude awakening. Luxury cars, gilded toilets, a lakeside galleon, and a private zoo were found. Acres and acres of tasteless, overpriced junk that cost millions of dollars.

So under Yanukyovich, the system reverted in Mancur Olson style terms from stationary to mobile banditry. He stole with both hands and spent money which had actually passed through his own mucky paws on his absurd country retreat. Apparently he also robbed his own support base blind, which is why backing for him from that sector and from across the general apparatus of state seemed remarkeably soft. The downside of that is that it  allowed fascist street muscle to play an overly prominent part in his ouster. Still, at least the crowds at the Maidan seem to have caught on to Tymoshenko

One thought on “untouchable tender mafias

  1. Pingback: untouchable tender mafias » Official Socialist Webzine

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