The house that the Sadovy bought

Будинок міського голови Андрія Садового. Фото з сайту ЛМР

Будинок міського голови Андрія Садового. Фото з сайту ЛМР

By Valentyna Novytska

After the spectacular and noisy purchase of a home for the family of Lviv Mayor Andriy Sadovy massively covered by Lviv media, the mayor 's housewarming went almost unnoticed. Why?

Last summer, "No To Corruption!" said that Lviv Mayor Andriy Sadovy bought a house in an exclusive neighborhood of the city and analyzed whether the mayor had enough money to by such a property.

The total area of the acquired house was 695 sq. m (including residential space of 234 sq. m). The house has three floors: the first floor is basement (garage is for 2 cars and utility rooms), second and third floors being residential.

Let us recall that the house was acquired in exchange for an apartment, where the mayor’s family had lived, and some extra sum. The total cost of the unfinished building was UAH 3,896,000 (including the UAH 1,396,000 received for the apartment on Rudnytskoho St., UAH 2.5 mn in additional payment came from the sale of the stake of the broadcasting company Lux).

Under the terms of the contract of sale, mayor’s family had to free their apartment on Rudnytskoho before February 2014. Mayor’s spouse Kateryna Kit-Sadova was hoping for an even earlier housewarming party– on Christmas 2014.

After the presentation of the house to journalists, Ratusha’s editor-in-chief Mykola Saveliev observed, "I do not mind people to be rich, what I am strongly opposed to is rich people making fools of other people. The said presentation of home that the Sadovy purchased is a vivid example of how easily journalists can be duped, because in this situation the Mayor used them solely as repeaters. Many publications did not even make a stab to analyze the purchase of the unfinished house, though I am sure that this house was built by the Sadovy. It looks like for the Sadovy the expensive purchase was just an attempt to legalize some cash."

NTC calculations suggest that the mayor’s officially earned money is just enough to purchase the house, given that they also purchased an expensive car last year.

The mayor’s press office announced that the newly purchased home was finished by 52%. The house was under construction at the stage i.e. bare walls.

NTC asked the question at that time, if the half ready house is bought for 4 mn, then one needs the same amount to complete the construction and settle down, do not they? Would the mayor’s officially declared family income be enough to complete the house and make a new home by February?

February and March have passed as NTC vainly and to no avail waited for official reports of the mayor’s housewarming party. So we decided to take interest by sending a request on March 31 to Lviv City Council asking for a declaration of income of Andriy Sadovy in the past 2013 and whether the mayor's family has moved into the new home, because, remember, they had to release their apartment by February.

However, the mayor’s press office was faster. On April 3, the city hall posted the information about the earnings of the mayor and informed that the Sadovy live in the new house with the parents of his wife Kateryna. The city hall’s personnel department said the information about the mayor’s housewarming party was confidential.

So, let us try and calculate whether the Sadovy had the money for the new home based on the family’s income in 2013.

Over the last year the mayor declared UAH 78 723.89 in gross income, of which UAH 78 604.04 was the salary that Andriy Sadovy received as mayor of the city. Members of the mayor’s family declared the total income UAH 1 915 536.26 last year, of which UAH 519 536.26 was the salary. Proceeds from the sale of property made up UAH 1,396,000.00 (which was spent on the purchase of the house).

The mayor registered the new property in his wife’s name, so she is now the proud owner of 660.4 sq. m. of floor space and 707 sq. m. land plot underneath it. The Viano Mercedes Benz, 2012 model, also belongs to the wife. Also, the Sadovy family owns a stake of UAH 170,850, 00 in securities, and UAH 1.750.00 share in the statutory fund.

The Sadovy spent UAH 309.01 for insurance of the new property, and another UAH 100.00 went to the maintenance of the house. In the meantime, his family’s insurance expenses amounted to UAH 39 929.00, UAH 46 650.00 was spent on the maintenance of the property. Also, the Sadovy family spent UAH 92 420.00 for repayment of the loan, and UAH 48 770,00 covered the repayment of interest on loan.

Now, some elementary mathematics:

Step 1:

78 723.89+1 915 536.26 = 1 994 260 49 (UAH, total income of the Sadovy family)

STEP 2:
309.01+18 100.00 39 929.00+650.00+46+92+48 420,00 770,00 000,00+1 396 = 1,612,178.01 (UAH, total expenses of the Sadovy family)

Step 3:
260.49 1994–1612178, 01 = 382 082.48 (UAH, on this money the Sadovy family of seven – two adults and five children was fed, dressed and at the same time made finishing works at almost 700 sq. m. of the new building).

To be fair, it must be added that Mayor Sadovy stated earlier that his wife Kateryna "was issued one million in an interest-free loan for three years at her company TRC Lux. “My wife has taken a loan at work as the founder of the company and the Chairman of the Board. The law permits this. This million taken from TRC Lux, was just enough for the repair."

So it turns out that either the builders were not entirely competent and voiced wrong estimations that the house was half-finished, or the city head have managed to get the job done for a laughable million.

Or maybe, as some journalists suggested, Mayor Sadovy showed the house that he has purchased for almost four million, at the stage of 52% readiness, because it would be hard for him to show the property fully renovated, let alone invite the press to a housewarming party, because such sums are really hard to legalize.

1290394_1314200

1290394

1290394_1314182

1290394_1314183

1290394_1314194

1290394_1314198

1290394_1314195

The Ukrainian version see here

Valentyna Novytska, No to Corruption!