New information has appeared, concerning the scandalous bankruptcy of Ukraine’s largest electricity generating company, Donbasenerho. The State Property Fund is fighting in court to return to public ownership three thermal power stations sold for debts. The Prosecutor General’s Office investigation revealed the absence of detailed inventories at the stations. None of the company executives can explain it. The Control and Audit Directorate of Ukraine was instructed to take a full inventory.
Three of Donbasenerho’s five thermal power stations went under the hammer this spring, bought by a little-known firm called Tekhrempostachannia for UAH 208 million. To prove that the stations’ actual cost is several times higher and nationalize them back, the SPF appointed an alternative valuation. The valuation tender was won by the National Auction Center Network. However, since the previous inventory was found lacking, the valuation has been postponed.
Yury Hrishan, SPF deputy chairman, believes that the process of valuing Donbasenerho will be drawn out but seems unconcerned: “Of course, the appointed appraiser found himself in a difficult situation; otherwise he would have to assume full responsibility — that the inventory once made has to be taken into account. However, the special investigator and I agree that a new inventory must be made. This will allow a more effective approach to the problem.”
Last month, Donetsk Oblast Governor Yanukovych suddenly declared that the three combined heat power plants should be left in Tekhrempostachannia’s possession. The SPF meanwhile notes attempts to politicize the situation surrounding Donbasenerho. “We wouldn’t want the company valuation process to acquire a political coloration. We want maximum objectiveness,” says Mr. Hrishan.
The NACN experts appraising Donbasenerho decline comment, saying they have pledged secrecy with the Prosecutor General’s Office. Yet they admit that incomplete inventory rules out any objective valuation this spring. Meanwhile any attempts to sell Donbasenerho property have been blocked by the prosecutors pending completion of the investigation, meaning more than a month.
