The State Audit Office of Ukraine has reported that over 300,000 Euros from the Eurovision 2017 budget was lost to fraud and financial irregularities.
In total 11,400,000 UAH (364,000 Euro) was lost from the budget of the Eurovision Song Contest 2017 as a result of fraud related to contracts for services at the contest. 2,800,000 UAH was lost to contractors excessively spending on the services that they provided for the contest. While a further 8,600,000 UAH was lost to accounting irregularities during the procurement process.
In addition to the loss of over 300,000 Euro’s ,the State Audit Office makes it clear that 400,000,000 UAH of contracts that were awarded were not subjected to the correct procedures. This includes a number of companies that won contracts for the contest, not fitting the criteria that the tender process outlined and as a result the winning companies sub-contracting the work.
On example of the losses that the contest incurred surrounds the supplying of metal detectors for the venue. The winning contractor charged the organisers 2.7 million UAH for providing the metal detectors for two weeks. The contractor then went on to sub-contract the business and brought in a cheaper firm who provided the service for 1.2 million UAH. The contractor that won the bid walked away with 1.5 million UAH (48.000 Euro).
All materials from the audit by the State Audit Office has been passed to law enforcement agencies who will decide how they wish to proceed.
Salvador Sobral won the 62nd edition of the Eurovision Song Contest in Kyiv, Ukraine for Portugal. The 27-year-old singer from Lisbon won the hearts of Europe performing “Amar Pelos Dois” (Love for two), which was written by his sister. Portugal have been waiting 53 years for victory in the Eurovision Song Contest, the longest a country has ever participated in the contest without winning.
Source: Detector Media