President Viktor Yushchenko wrote a letter to Prime Minister Yulia Tymoshenko, president's press office reported.

In his letter President drew Prime Minister’s attention to the fact that during last years the number of financial frauds in house-building has reached threatening scale. According to experts, said V. Yushchenko in his letter, the causes to high numbers of frauds are imperfect procedures of land apportioning, building companies’ selection, registration of real estate property rights, as well as lack of regulatory mechanisms for guaranteeing house-building contracts observation in the legislation.

Among the suggestions on how to improve the situation named by President were:

  • improving the legislation regulating selection of the companies for auctions on building projects with regard to their financial and technical capabilities
  • foreseeing mechanisms of guaranteeing house-building contracts observation through pawning the building plot or through finding solvent bail for the building company
  • introduction of building companies and building plots registries
  • introduction of an obligatory accounts rendering by the building companies and investment foundation
  • prohibition of advertising for building companies before they obtain permission for building, etc

President asked Prime Minister to work over the suggestions and to inform him on the results before July 1, 2008.


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