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Ministry of Infrastructure Responds to Criticism of Audit Chamber

Tuesday, 09 October 2018 16:56

The Ministry of Infrastructure called most opinions and statements from the Audit Chamber’s report as contradicting the reality, according to the statement of the Ministry of Infrastructure as per results of familiarizing with the certificate and draft Report on the audit findings of the Audit Chamber.

As the press office of the Ministry of Infrastructure states in 2016 ensured performance by the business entities of the planned target of net financial result by 120% (2016 target – UAH 6.7 bln, in fact – UAH 8.038 bln).

In addition, the target on increasing the state budget revenues from ownership of business entities is performed for 132.8% (2016 target – UAH 12.569 bln, in fact – UAH 16.697 bln).

The reasons for underperformance of financial results in 2017 by some field companies (by less than 10%) were the short delivery of planned amount of loads and the loss of relevant revenues, MIU states.

The reason for that is the general trend of Ukraine’s decrease of iron ore and concentrate export in 2017; decline in volumes of transshipping metal products, which is related with closure of transport connection with temporarily occupied territories; the reduction of volumes of transshipping of the Russian liquefied gas.

“Nevertheless, the insignificant state budget underperformance by payment companies in 2017 (less than by 3%) is caused by the loss of income, reduction of the basic ratio of deducting some part of profit from 75% to 50%, which was aimed at paying dividends by business entities”, the message says.

The Ministry of Infrastructure of Ukraine reports that in 2018, it managed 43 financially active state companies.

Reportedly, the Audit Chamber report said that the Ministry of Infrastructure does not control activities of about 77% of business entities, which related to its sphere of management, due to which the state budget loses additional revenues.

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