uAH 72.5 million in losses: State Audit Service finds violations in Kyivoblagrolis
2 April 2024 14:39
The State Audit Service has found serious violations and financial losses at the state enterprise Specialised Forestry Enterprise Kyivoblagrolis. This is reported by the Northern Office of the State Audit Service, Komersant ukrainskyi 
reports.
Kyiv auditors found that unauthorised persons had illegally cut down 3.6 thousand cubic metres of trees, resulting in a loss of income for Kyivoblagrolis and damage to the forest of an estimated UAH 43.56 million.
The auditors also identified lost opportunities to generate additional income:
- due to the failure to cover the costs incurred in the formation of the cost of finished timber products, the state enterprise is likely to have lost more than UAH 13 million in revenue
- due to the failure to make management decisions on the right to apply a certain method of ensuring the fulfilment of contractual obligations by counterparties (fines, penalties), the company lost out on income in the amount of UAH 3.73 million
In addition, Kyivoblagrolis incurred administrative expenses and made capital investments in excess of UAH 2.05 million. In addition, the company inefficiently used its own funds to pay fines and settle disputes in courts in the amount of UAH 1.78 million, and there is a risk of non-recovery of receivables, annual interest, penalties and court fees in the total amount of UAH 3 million.
The audit initiated an audit of certain issues of financial and economic activities of SE “Kyivoblagrolis”, which revealed violations that led to losses totalling UAH 4.17 million. In particular, during the inspection of forest areas, illegal felling of trees was detected, which resulted in losses of UAH 2.9 million, as well as other violations in the course of business activities, which resulted in losses totalling UAH 1.27 million.
The audit also revealed that the absence of title documents for land covering 36,458 thousand hectares led to the unauthorised seizure of forestry plots covering more than 0.3 thousand hectares.
In addition, it was found that local deputies illegally granted 38 land plots of 6,33 thousand hectares for permanent use to the Ivankiv Forestry and Parks Enterprise by a decision of the Ivankiv Village Council, which actually belong to the state enterprise Kyivoblagrolis according to forestry records.
The audit materials were transferred to the Territorial Department of the State Bureau of Investigation in Kyiv, and the State Property Fund of Ukraine as the property management body was informed of the results.
