The State Audit Service of Ukraine has completed an audit of the activities of PJSC NPC Ukrenergo during the period when the company was managed by Volodymyr Kudrytskyi, and has revealed numerous financial abuses. The audit results revealed facts of groundless bonuses, inflated estimates, dubious contracts, and violations in reporting. The materials have been transferred to law enforcement agencies.
The auditors concluded that management failed to ensure proper control over the use of public funds, which caused significant losses and created risks of property loss.
Premiums despite losses
One of the main violations was the accrual of bonuses to the company's management and employees during a period when Ukrenergo was experiencing significant losses. In 2020, the company's losses amounted to UAH 27.5 billion, but the management decided to pay annual bonuses of UAH 203.5 million. In 2021, this amount increased to UAH 390.1 million, although the company again had a deficit in its reporting.
The State Audit Service noted that such payments contradicted the collective agreement, which allows bonuses only for the fulfillment of key performance indicators.
Inflated estimates and costs
The audit also revealed an overestimation of the cost of works during the construction of the Zakhidnoukrainska – Bogorodchany power transmission line. The contractor, LLC “Tsentrbud”, artificially increased the volume of cable used by more than 20 km, which led to an overpayment of UAH 1.28 million. In addition, overestimation of costs was revealed during the cladding of facades - the overexpenditure of tiles on 26.65 m² cost the state another UAH 536 thousand.
Questionable contracts
The auditors paid special attention to eight contracts concluded without sufficient justification through the negotiated procedure. Their total value is over UAH 15 million. The contract concerned the creation of a backup system of dispatch teams, which was never launched.
The report states that responsibility for these violations lies with the then chairman of the board, Volodymyr Kudrytsky, who failed to ensure control over compliance with financial discipline.
Other violations
The auditors also recorded:
– uncontrolled receivables of SE Energorynok in the amount of UAH 1.67 billion;
– overestimation of depreciation and impairment of assets;
– payments to Ukrenergo Digital Solutions in the amount of UAH 34 million, part of which, according to the Pension Fund, was made to people without official employment.
As a result, the auditors stated that "management did not ensure proper control over the financial and economic activities of the enterprise," which led to distortion of reporting and the risk of loss of state assets.
The inspection materials were transferred to law enforcement agencies to provide a legal assessment of the actions of officials.
