While analyzing the implementation of the State Program on preparing and conducting of a final tournament of European Football Championship 2012 in Ukraine, in complying with legal requirements, the Prosecutor General’s Office identified acts of corruption.
In 2010, the State Enterprise “Southern Railway” purchased 10 electric HRCS2 Hyundai Rothem (Korea), worth USD 307 million and then passed them over to State Administration of Railway Transport of Ukraine “Ukrzaliznytsia”. These trains were put into operation in spite of technical malfunctions which are prohibited, putting in danger people’s life. Contrary to the legislation in place, Ukrzaliznytsia used them for providing services for more than a year, without a licence. “As a result of the investigation, The Prosecutor General’s Office of Ukraine started criminal proceedings under Part 1, Art. 276 of the Criminal Code of Ukraine (violations of traffic safety or operation of rail, water or air transport.)”.
Hyundai Rotem also faces major problems in USA. According to The Boston Globe publication, Hyundai Rotem has been under fire for years in Massachusetts, first for not delivering the commuter rail trains on time and, more recently, for claims that the trains, once delivered, were faulty, including complaints about doors, air conditioning, brakes, and signal software. Rail union representatives have lodged complaints with the train and officials at the Federal Railroad Administration have been monitoring the situation. Hyundai Rotem officials said the problems are routine in new trains and are being fixed.
The commuter rail car contract has been controversial since 2008, when MBTA officials said Hyundai Rotem, the lowest bidder, would deliver good-quality trains on time even though the company had not yet opened an assembly plant in the United States.
It is one of the largest ongoing state contracts, a $190 million purchase of 75 commuter rail cars.