In Ukraine, the scandal surrounding the lease of the state-owned enterprise Dobropillyavugol by DTEK continues to cause outrage. It is a story of how state property became hostage to oligarchic interests, leading to huge financial losses for the state and calling into question the role of former top managers in state politics.
Prime Minister Denys Shmyhal has extensive experience in squandering funds in the interests of oligarch Akhmetov. On December 22, 2010, the entire property complex of the State Enterprise Dobropillyavugol was transferred to a long-term lease for a period of 49 years.
The transfer took place in accordance with the order of the Cabinet of Ministers of Ukraine No. 1559-r dated July 28, 2010. According to the lease agreement for the mines of the State Enterprise Dobropillyavugol between the State Property Fund of Ukraine and DTEK, the amount of the monthly rent amounted to UAH 18.3 million.
DTEK assumed investment obligations for the development of these enterprises, but during the lease period it not only failed to fulfill current investment obligations, but also artificially inflated the accounts payable of DTEK Dobropillyavugol to DTEK's own enterprise (DTEK Pavlogradvugol CJSC).
These actions were carried out by inflating prices by 200-300% for delivered goods and services, which were purchased through DTEK Pavlogradugol's UMTS, transferred to DTEK Dobropillyaugol's ownership, and then immediately leased to DTEK Pavlogradugol at an understated cost.
DTEK's debt for the lease of the entire property complex of the State Enterprise Dobropillyavugol exceeded UAH 100 million. According to the current lease agreement for the mines of the State Enterprise Dobropillyavugol between the State Property Fund of Ukraine and DTEK, the monthly rent is UAH 18.3 million. At the same time, the rent has not been paid by the tenant since March 2020. Currently, there is a debt for rent in the amount of more than UAH 100 million.
In 2020, at the initiative of the tenant, the lease agreement of the State Enterprise Dobropillyavugol was terminated. On the instructions of Shmyhal (who was a former top manager of DTEK), as well as the Acting Minister of Fuel and Energy Olga Bohuslavets, an interdepartmental working group was created to comprehensively study this issue.
After the lease agreement was terminated, the created SE Dobropillyavugol paid UAH 397.8 million to DTEK Dobropillyavugol due to the inability to remove the fixed assets that were updated by DTEK during the lease. However, in fact, the structural divisions of DTEK simply removed all the existing working equipment and actually left scrap metal under the guise of equipment.
From May 2020 to January 2021, the RMZ plant, which is part of the Dobropillyaugol Central Mining and Processing Plant, was completely scrapped. Similarly, the existing inventory list, which was signed by representatives of the Federal Property Fund (at the direction of Shmyhal), the Ministry of Fuel and Energy of Ukraine, as well as the management of the newly created enterprise “Dobropillyaugol-vydobutok”, included fictitious goods and materials, which were actually exported to the mines of DTEK “Pavlogradugol”. According to the trade unions of the Dobropillyaugol SE, the shortage of goods and materials is over UAH 300 million.
