Defence ministry picks pricier food supplier for troops despite ongoing court disputes

Supplier selection despite existing lawsuits

The Ministry of Defence, acting through the Defence Procurement Agency (DPA), signed a contract with Flavakor LLC for the supply of food products. The value of the deal is 322.803 million UAH. Notably, at the time the contract was signed, court proceedings were already underway between the DPA and Flavakor. In September and October, the Agency filed three lawsuits against the company for a total of 14.14 million UAH, seeking the recovery of funds and penalty sanctions for breaches of previous contract terms.

Competitor's bid proved more advantageous

Despite the choice of Flavakor, an alternative bid existed that was significantly cheaper. Adelin LLC offered a price of 308.295 million UAH for similar services. Thus, the difference between the two companies' bids amounted to 14.508 million UAH. The Defence Procurement Agency rejected the financially more advantageous bid from Adelin in favour of a supplier with whom it is in conflict over financial discrepancies.

Supply volumes and company leadership

Under the contract terms, Flavakor LLC is to supply two million food kits for the Armed Forces of Ukraine and another 15,000 kits for the State Special Transport Service. Andrii Huk is the owner and director of Flavakor.

Regarding the competitor, Oleh Pasko became the owner and head of Adelin LLC in early October. This man previously held the position of vice-president of the Galnaftogaz concern (OKKO network) and was the head of the Volyn Regional Department of Justice.