Some violations and procurement scams were found in company activities for 2014-2015.

The financial irregularities for more than UAH 580 million were found during the revision in Ukrtransgas.

The revision of company activities was conducted for the period from June 1, 2004, to December 31, 2015.

“In spite of significant increase of gas transportation and storage rates as per results of 2015 Ukrtransgas PJSC obtained losses for the amount of UAH 4.7 bln, while the planned net profit indicator amounts to UAH 5.7 bln. The main reason for losses in 2015 became the increase of the amount of accrued amortization deductions by UAH 13.2 bln without making changes to the financial plan, what in its turn violated the requirements of the Economic Code of Ukraine – the message says.

Auditors note that multiple court processes, lasting for years due to unbalancing of natural gas in underground storages of Ukrtransgas, lead to multi-million losses and deficit of turnover funds of the society.

In addition, it is reported that due to non-fulfilment of the decision of general shareholder’s meeting of Ukrtransgas the dividends for 2012, amounting to UAH 135.8 mln, were not transferred to the state budget.

The material and technical resources, amounting to about UAH 130 mln, acquired within 2000-2012, which are not still used, were also found in company’s warehouses.

In addition, Ukrtransgas conducted 144 procurement procedures with violation of legislative requirements, as per results of which the agreements for the total amount of about UAH 622 mln were concluded.

The State Audit Service elicited facts, which can witness about the cahoots between bidders.

The information about violations was also submitted to the State Fiscal Service of Ukraine, the Antimonopoly Committee and law enforcement bodies.

Source: State Audit Service.