Pressure on business or a fair investigation? What there is to know about the case of Concorde Capital's Ihor Mazepa

Ukrainians have not yet moved on from the Businessman Ihor Hrynkevych and his son Roman are suspected of supplying the army with low-quality clothing worth UAH 1 billion ($26.7 million). Ihor Hrynkevych was detained while trying to bribe one of the SBI's heads for $500,000Hrynkevych scandal, and the country has already been shaken by the new case of Concorde Capital founder Ihor Mazepa, whom law enforcement suspects of stealing the land of the Kyiv Hydroelectric Power Plant. Some people take the side of the investigation, while others see it as pressure on business and an attempt to "shut up" an active critic of corruption.

hromadske has gathered everything that is known at this point: what happened to the Kyiv HPP lands, how Ihor Mazepa is involved, and why a number of businesses have come to his defense.

A brief summary of the charges

The State Bureau of Investigation reported that on November 29, 2023, law enforcement officers exposed and detained members of a criminal organization who had illegally seized the land where the hydraulic structures of the critical infrastructure, the Kyiv HPP, are located.

According to the investigation, the criminal organization consisted of almost 20 members. Among them are well-known investors in the field of luxury housing construction, their assistants, lawyers, architects, land surveyors, other qualified specialists, and representatives of government agencies.

According to the SBI, the defendants exploited gaps in the legal status of the plots and, through corrupt connections in government agencies, registered them as agricultural land, which allowed them to allocate these plots to Ukrainian citizens.

The investigation is convinced that under this scheme, in 2020-2021, the criminals seized state-owned land, which is included in the list of water fund lands and is located on the hydraulic structures of the strategic Kyiv HPP. There, they built an elite cottage community Goodlife Park spanning an area of almost 50 hectares, which, according to investigators, threatens the hydroelectric power plant.

Various pre-trial investigation bodies had been investigating the seizure of land and hydraulic structures in Kyiv Oblast since 2014, and in January 2022, they were transferred to the State Bureau of Investigation.

According to law enforcement, the illegal construction and privatization of more than 7 hectares has already been confirmed, but investigators are working to prove the involvement of the defendants in the seizure of approximately 300 hectares of land with an estimated value of UAH 1.1 billion ($29.4 million).

What does Ihor Mazepa have to do with it?

The SBI considers the founder of Ukrainian investment company founded in 2004Concorde Capital to be the organizer of the above-mentioned scheme of illegal seizure of the Kyiv HPP land, which took place in 2020-2021.

Mazepa was detained on January 18 at the Medyka-Shehyni checkpoint with Poland, and his company's office was searched. The SBI claims that he tried to leave the country to "avoid certain procedural actions."

At the same time, Kryvyi Rih Cement PJSC (owned by Mazepa) asserts that the businessman was on his way to the World Economic Forum in Davos to attract investment in the Kryvyi Rih enterprise, which is one of the largest cement producers in Ukraine. The company says that Mazepa had all the necessary official documents to leave the country.

Investigators classified the actions of the members of the criminal organization (including Mazepa himself) under Establishing, leading, or participating in a criminal group or criminal organizationArt. 255 and Illegal privatization of state and municipal propertyArt. 233 of the Criminal Code of Ukraine. The defendants face up to 12 years in prison with confiscation of property. Mazepa has already been imposed a pre-trial restriction in the form of detention until February 27 with the possibility of posting almost UAH 350 million ($9.36 million) bail. His brother Yuriy was also sent to a pre-trial detention center.

Security forces are accused of violations during searches

Investment company Concorde Capital claims that the searches of its office and Mazepa's residence were carried out without court orders and in violation of procedural rules.

"The security forces acted illegally and aggressively, committed all possible procedural violations during a series of searches: they did not allow lawyers to enter, seized all documents and personal funds of the company's employees indiscriminately, searched the company's office without a court order and broke down the doors," the investment company said in a statement.

Investigation sees threat to Kyiv HPP

The SBI claims that the construction of cottages on the land of the Kyiv HPP directly jeopardizes the functioning of Kyiv's critical infrastructure. Later, they added that it could even lead to a technological disaster.

This concerns the land on the territory of Lebedivka and Hotianivka village councils in Vyshhorod district of Kyiv Oblast, where the east-bank protective dam of the cascade of Kyiv HPPs and PSPs with a length of more than 65 km is located. This hydraulic structure is a state-owned facility under the jurisdiction of the Ministry of Economy.

However, the chairman of the Verkhovna Rada Committee on Energy, Andriy Gerus, denied the SBI's allegations. According to him, the land involved in the proceedings is not owned by the Kyiv HPP, "so this definition is more of a creative and imaginative approach, but not a legal one."

Gerus said that the law enforcement agencies "should have enough legal evidence to avoid the need to come up with false allegations that sow fear and unrest among the public."

Mazepa's lawyers say that, according to the investigation's logic, "Vyshhorod was built illegally as well."

Mazepa previously criticized corruption

The Western media, writing about Mazepa's detention, noted that he was an outspoken critic of law enforcement and judges, many of whom he accused of graft and abuse of power.

Six months ago, Mazepa announced the creation of an anti-rating of law enforcement officers and judges who use their powers for illegal purposes. In June 2023, 42 entrepreneurs supported Mazepa's initiative and published a Manifesto in defense of Everyone has the right to engage in entrepreneurial activity not prohibited by law. The entrepreneurial activity of councilmembers, officials and employees of state authorities and local self-government bodies is limited by law. The state shall ensure protection of competition in entrepreneurial activity. Abuse of a monopoly position in the market, unlawful restriction of competition and unfair competition are not allowed. The types and limits of monopoly are determined by law.Article 42 of the Constitution. The entrepreneurs also planned to establish an organization that would protect businesses from pressure from law enforcement agencies and communicate with the state.

Businesses stood up to defend Mazepa

After the businessman's detention, the Federation of Employers of Ukraine and Manifesto 42 (which was formed as a social movement) issued statements condemning the actions of law enforcement and claiming pressure on business. The Federation says that the SBI violated procedural rules during the searches, and this "may indicate the commissioned nature of the investigative actions."

Subsequently, Manifesto 42 announced a move to more radical forms of protest and announced that on February 1, all 42 companies of the movement would suspend operations for one hour if the government did not begin to address the problem of pressure on businesses. The movement called this protest a "warning".

Forbes Ukraine also practically came to the defense of Ihor Mazepa, publishing a number of articles about the case. The newspaper called the Mazepa case a test for the Ukrainian legal system and an event that should be a turning point in the relationship between businesses and authorities.