Why is the partnership between the Production Support Center of JSC Ukrzaliznytsia and suppliers questionable?

The partnership between the Production Support Center of JSC "Ukrzaliznytsia" (hereinafter referred to as the CZV) and suppliers of UZ has become the subject of serious doubts and criticism, as Denys Korolev, the authorized representative of LLC "LEBEDYNSKY MBDE PLANT "TEMP" , told the information portal Railway Supply .

Next, the authorized representative of ZAVODTEMP, a Ukrainian manufacturer of braking equipment for railways and subways, talks about the following:

One of the main problems is the issuance of orders from the Central Procurement Office for the supply of goods and materials while the previous supply is still in progress.

This leads to serious delays and disruptions in delivery times, which in turn leads to claims and fines being imposed on suppliers, as well as the cancellation of bank guarantees.

In the 4th quarter of 2023, our company faced an absurd situation, as a result of which the company was left without the means of subsistence, development, and funds for the production of scarce goods that are not produced in Ukraine, but which are very important for the railway industry in terms of traffic safety.

Following the results of the tender procedures, the Central Production and Distribution Center of Ukraine signed a contract with our company in August 2023.

When making a decision on the participation of our company in the tender procedure, our company's specialists calculated the possibilities of producing products in the quantity and time frame stated in the procedure itself, where the average monthly volume was 300 units of goods produced per month, with the company's capacity of 350.

In other words, we clearly understood that we would cope with this order! But everything turned out not as expected...

We received the first order on September 15, 2023 for 190 units of goods.

While the order dated 09/15/23 was in progress, the Central Production Department sent a new one dated 09/25/23 for 250 units of goods, which is already 90 units of goods more than the monthly capacity of our enterprise!

The order dated 09/25/23 was in progress when we were sent another order dated 10/23/23 for another 300 units of goods.

With the order dated 11/15/23, everything was the same...

We are using all possible company resources to fulfill the order, but due to overlapping one order with another, our company got out of schedule and delayed the last delivery... but only by 2 calendar days!

We believe that the delay did not harm the activities of JSC Ukrzaliznytsia, did not cause harm to UZ, especially since the orders went beyond our capabilities, which we reported earlier, but... even more interestingly...

In this case, we encountered a deliberate delay in receiving our Goods by the authorized representative of the Central Shipping Company of Ukraine, for fictitious reasons:

– The representative cannot read the accompanying documents, and the Supplier's specialists explain where and how;

– The representative says that the Certificates and Passports need to be redone because in the tender they were in color (samples), and the Supplier's VTK printed them in black and white;

– The representative cannot read the numbers and/or the company's conditional number (brand) for unknown reasons…

The Treaty does not specify or regulate all these issues...

After telephone explanations, an authorized representative of the Central Shipping Agency of Ukraine accepts the Goods, but not on the delivery date, but two to four days later!!!

Since the above is not regulated by the Agreement, we see this as systematic unfair behavior on the part of the Central Bank.

As a result, all of the above led to the fact that the Central Bank of Ukraine canceled the bank guarantee, issued a claim with a 15% penalty, and additionally charged 0.1% of the amount for each day of delay in the delivery of the Goods!

Thus, the actions of the representative of the Central Administrative Court of Ukraine caused losses to our company and left our staff without means of subsistence!

And so, according to all the Agreements concluded with our company...

It seems that JSC Ukrzaliznytsia, represented by the Procurement Department, is not aware of what is happening with our Ukraine today, they do not understand the lack of electricity due to terrorist attacks by the aggressor, they do not understand that there are failures in the production of castings due to what is happening on the Ukraine-Poland border!

This is the kind of "struggle" that takes place with a national manufacturer during wartime!

The question arises: is the UZ Procurement Department doing this on purpose?

Creating situations that lead to fines for suppliers may be part of a strategy to reduce UZ costs, or even for personal gain…

Such actions damage the reputation of UZ itself , and can lead to serious consequences in the long term!

It seems that the management of the Procurement Department of JSC “Ukrzaliznytsia”, responsible for the work of the Central Procurement Office, pursuing a policy of strict sanctions, is specifically imposing fines on suppliers through the Central Procurement Office!

If such practices are indeed taking place, we ask for a thorough investigation and appropriate action to prevent further violations and restore trust from suppliers.

Overall, this situation raises serious doubts about the honesty and transparency of the UZ Central Procurement Agency's partnership with suppliers.

It is necessary for the competent authorities to conduct an inspection and take measures to eliminate such violations!

This is the only way to ensure equal and mutually beneficial cooperation between all parties in the railway industry!

The company is appealing to Yulia Anatolyivna Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, with a request to understand the current situation.

Given the seriousness of the situation and the potential negative consequences for all parties, it may be worth bringing this issue to the attention of the country's top leadership.

We hope that the appeal to Yulia Anatolyivna Svyrydenko, First Vice Prime Minister - Minister of Economy of Ukraine, will be able to help shed light on the situation, identify possible violations, and take measures to improve partnership relations and the process of supplying goods and services to UZ.

The destruction of the national producer is one of the main problems that, unfortunately, national producers are currently facing.

In many cases, this is due to deliberate actions by government agencies and large state-owned companies. So our company faced a similar situation...

After many months of successful industrial production, our enterprise has been seriously damaged!

We believe that the culprit for this was JSC Ukrzaliznytsia, which caused damage to our company.

These supply disruptions and claims are only part of the problem….

Unfortunately, at this time, Ukrainian producers need to fight for their rights and protect their interests. We cannot allow Ukrainian industry to be oppressed in this way!

The Ukrainian state must support and protect Ukrainian producers - this is a common task for the entire society!

We must unite, achieve change and win!

Plenipotentiary

LLC "LEBEDYNSKY MBDE PLANT "TEMP"

Denis Korolev