The State Audit Office reported about a denial of access to conduct an audit in Ukrnafta

The State Audit Service was unable to conduct an audit of Ukrnafta PJSC at the end of September for the period of 2016 - the first half of 2019. It is reported by Enkorr with reference to Economic Truth.

In 2010, the last scheduled audit of Ukrnafta took place.

The civil service letter says that the last audit could not take place because of the position of Ukrnafta, which stated that it was not a business entity of the public sector of the economy.

In turn, the State Audit Service provided the Cabinet of Ministers with information of the Supreme Court ruling, which confirmed that Ukrnafta (in the authorized capital of 50% + 1 share is owned by Naftogaz of Ukraine) is a business entity of the state sector of the economy, as the state of Ukraine represented by the Cabinet of Ministers indirectly owns a controlling stake in Ukrnafta.

“It should be noted that the position of Ukrnafta on non-control by the state financial control bodies is systematic, and therefore the last scheduled audit of the company was carried out in 2010”, the message said.

The auditors suggested the Cabinet of Ministers to instruct the Ministry of Economic Development to develop a draft law that clearly defines those enterprises with state-owned 50 percent or more shares belong to business entities of the public sector of the economy. And Naftogaz should be instructed to provide the conditions for the State Audit Service to conduct an audit in Ukrnafta.

NJSC Naftogaz owns a 50% +1 share in Ukrnafta. About 42% of the shares belong to a group of companies associated with the former shareholders of Privatbank, including Ihor Kolomoiskyi.

Recall that Ukrnafta did not let state auditors to check the company's activities for the period 2015-2018.

Earlier it was reported that Ukrnafta was awarded $44.4 million from Russia for seized assets in Crimea.

Tags: The Cabinet of Ministers, Naftogaz, contracts, oil, hydrocarbon production, tariffs, legislation, Top management, energy market, Ukrnafta, drilling, Oil refinery plant

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