Following a Russian missile strike on Ukraine's largest children's hospital last month, fundraiser Yevhen Vember quickly mobilized over $9 million for urgent repairs.

However, a tender for construction work at Kyiv's Okhmatdyt hospital was canceled after an investigative report by a prominent journalist suggested the bidding process was manipulated, leading to widespread criticism.

In an interview with Reuters, Vember denied any wrongdoing, explaining that the Okhmatdyt charity fund he leads organized the tender with transparency and enlisted external legal and technical experts to evaluate and recommend potential contractors for the hospital's selection.

No money had been spent, but the episode highlights growing public intolerance for perceived corruption in Ukraine amid a 19-month-old Russian invasion that is depleting lives and resources.

It also underscores the scrutiny likely to accompany donor-funded reconstruction projects as Ukraine seeks to rebuild from the war.

Health Minister Viktor Lyashko said he had asked police to review the hospital tender for signs of illegal activity. No investigations or charges have been announced yet.

Lyashko also announced a new tender would take place with tightened oversight, though the delay could mean work will not be completed before winter.

The July 8 strike on Okhmatdyt, which killed two, shocked the nation with images of wounded children fleeing the scene and bloodied doctors digging through debris.

Donations flowed in from ordinary Ukrainians and some of the country’s top businesses, including to Vember’s charity, which has raised critical funds for vulnerable children since early in the war.

Ministry panel

The private tender to rebuild a damaged smaller building at the hospital initially appeared encouraging because it publicly listed the 14 companies that bid, said reporter Yuriy Nikolov of the online outlet Nashi Hroshi (Our Money), which investigates suspected graft.

But Nikolov expressed concern when the winner, announced by the hospital on July 31 with a cost estimate of around $7 million, was a firm with limited reported resources and the third-highest estimate. He believes it was chosen over more qualified bids in a closed-door process.

A day later, Nikolov published a story questioning the move but did not allege specific criminal wrongdoing.

Lyashko announced the next day that the tender would be canceled after an outcry of public criticism, including from influential figures.

"We will follow this very closely because it looks like total abuse and taking people for complete idiots," wrote Ihor Lachenkov, one of Ukraine’s most popular bloggers.

The Health Ministry has established an advisory council of activists, donors, and other public figures to oversee the hospital reconstruction process. The new tender will be held on a government platform.

"We not only prevented them from stealing in a one-off act ... but we showed that it’s dangerous to behave that way in general," said Nikolov.

Vember said of his canceled tender that the money would have been released only after the cost estimates were approved by a comprehensive government assessment and that other contenders had been ruled out as legally questionable.

"We tried to do something good and quickly," he said. "Unfortunately, it turned out differently."

High expectations

Vember also said he did not anticipate the fierce public reaction and believes the fund’s reputation has been tarnished by unfair allegations that struck an emotional chord with the public.

"Morally, I’m exhausted from this story," he said, leafing through stacks of tender documents. "But our task ... is to listen to society and to do things the way society demands."

Authorities have stepped up their fight against corruption since Russia’s invasion, a key requirement for Kyiv to eventually join the European Union. Ukraine ranked 104th out of 180 countries in Transparency International’s latest Corruption Perceptions Index.

Nikolov said "society has shown its combat readiness" when it comes to monitoring for signs of potential wrongdoing. His probe into inflated Defense Ministry procurement in January 2023, which officials denied at the time, helped lead to a government shake-up by President Volodymyr Zelenskyy.

International donors are also watching closely as they send billions of dollars in aid and recovery funds.

Okhmatdyt has continued working, with surgeons having carried out more than 400 operations over the past month, hospital General Director Volodymyr Zhovnir told Reuters.

Speaking inside the hospital’s main building, whose facade is pockmarked with blown-out windows, Zhovnir took pride in the staff’s resilience and described Nikolov’s report as an "information attack" that compromised reconstruction efforts.

Zhovnir, who said the tender winner was selected based on the fund’s recommendations, also added that he could have implemented more safeguards from the outset to address potential public concerns.

"Maybe I needed to be significantly tougher in terms of being public about what we were doing," he said.