Ukraine Prosecutor Alleges Massive Overcharge On Euro 2012 Stadium

KIEV, Ukraine -- Ukrainian officials responsible for building a football stadium needed for Euro 2012 paid an international team of architects 80 times more than prevailing market rates to check the planned design of the structure, according to Wednesday prosecutor statement.

Lviv Euro 2012 Stadium.

Managers at a state agency in the western city Lviv signed contracts with two construction firms to perform due diligence checks of a stadium construction plans for a collective fee of $1.9 million dollars, while the work should have cost around $22,000 dollars, a statement made public by Ukraine's Prosecutor General's office said.

The statement identified one of the Ukrainian company as AzovInteks, a firm acting as the general contractor for construction of the Lviv stadium.

The German firm Arena Com GmbH was the other firm named in the statement, according to Interfax.

A declaration of potential wrongdoing by Ukraine's Prosecutor General's office is often a first step in a legal proceedings and possibly criminal charges against individuals or companies named.

Ukraine along with Poland is a co-host for the Euro 2012 football championship. Kiev, Donetsk, Kharkiv and Lviv are the former Soviet republic's planned host cities.

Preparations in Lviv have long been the weakest link in the Ukrainian Euro 2012 preparation effort, primarily due to long delays in planning and beginning construction of a new 30,000-seat stadium needed for the competition.

Its projected cost is $110 million dollars.

Ukrainian President Viktor Yanukovych shortly after election to office in 2010 said acceleration of Euro 2012 preparations was a top priority of his administration.

The pace of stadium construction and tourist infrastructure repair has increased somewhat since then, frequently through the services of corporations owned by businessmen allied with Yanukovych's ruling Regions of Ukraine political party.

Source: DPA