$11 Billion USD in Financial Violations Uncovered - Ukrainian State Financial Inspection

KIEV, Ukraine -- The State financial inspection (SFI) of Ukraine has conducted financial audit of governmental financial activities in 2010.

Yulia Tymoshenko

According to its findings the previous government headed by Yulia Tymoshenko is responsible for embezzlement of funds in the amount up to 90 billion Ukrainian hryvnia (approx. $11 billion US dollars).

Petro Andreyev, head of the State Financial Inspection of Ukraine highlighted that violations in the area of state procurement alone amount to 15 billion Ukrainian hryvnia (approx. $2 billion US dollars).

In his opinion, the Ministry of Economy of Ukraine, chaired by Bohdan Danylyshyn at the time, had to play key role in such governmental activities. During the 2008-2009, the former government failed to create legible competition between suppliers, required by Ukrainian tender legislation.

On the contrary, the Cabinet of Ministers of Ukraine has issued around 60 ordinances, enabling customers to avoid using mandatory procurement procedures.

Among violations the SFI report mentions the cases of procuring large amounts of overpriced fuel by the Ministry of Defense and purchasing 250-mln hryvnia worth of special transportation vehicles by the Ministry of Emergency Situations.

On top of that, the promotional campaign, describing the achievements of the previous government cost the state budget 17 million Ukrainian hryvnia. The transaction was authorized by ex-Minister of Economy - Danylyshyn, stated Petro Andreyev at the "Shuster Live" talk-show.

During the show Andreyev presented a document certifying that the publishing company that carried out the order and was contracted by Yulia Tymoshenko's government had been established one month prior to signing the contract.

He also stressed, that the publishing house in question did not have any publishing equipment or even a license to perform the task.

In response the ex-prime-minister's political party BYuT dismissed the accusations, claiming that the inspection carries out Yanukovych's political orders "aimed at defamation of the opposition and using a so-called case-based reasoning to conduct repressions".

Andreyev refutes accusations of political repressions and of being biased, stressing that the State financial inspection has called upon the IMF and the EBRD to conduct their own audit on financial activities of the previous government.

He said that both organizations had refused to run any inspections claiming they had no authority to do so.

Source: Ukrainian State Financial Inspection

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