Audit of energy giants: the government launches a large-scale audit of Energoatom and warns of quick decisions
17 November 19:23
The Ukrainian government has announced the launch of a comprehensive state audit of key energy sector companies, a move the Cabinet of Ministers is citing as a response to public demand for transparency following high-profile corruption cases in the sector. This was announced by Prime Minister Yulia Svyrydenko after a meeting with the head of the State Audit Service, Alla Basalaeva, "Komersant Ukrainian" reports.
Energoatom is the main focus of the audit
According to Svyrydenko, the audit of the state-owned company NNEGC Energoatom has already started and has a priority status. The audit will cover the company’s management and 10 branches, including three nuclear power plants. The SASU will evaluate the activities for the period 2023-2025, a time during which the sector experienced record loads due to Russian attacks and the restructuring of the electricity market.
The government wants to receive the interim results of the audit in December, indicating an accelerated political and managerial pace. According to the statement, the materials will be transferred to law enforcement and anti-corruption agencies for prompt response.
Pressure on the entire energy vertical
In parallel, audits of other state-owned energy companies are being prepared:
- Ukrainian GTS Operator,
- Centrenergo,
- Ukrgazvydobuvannya.
The government expects monthly reports on the progress of the audits, a format that the Cabinet of Ministers calls “constant monitoring” of the management of critical assets.
The large-scale audit is launched against the backdrop of high-profile NABU investigations in the energy sector
In these statements, Energoatom was mentioned as one of the most affected entities.
Instead, the Cabinet of Ministers is focusing on transparency and personnel reset at energy companies, and the audit is seen as the first practical tool to clean up management and prepare for corporate governance reforms.
If violations are detected at the initial stages, the government promises to “act promptly.”
What is known about corruption at Energoatom?
on November 10, the NABU announced the exposure of a corruption scheme at Energoatom, which included current and former energy officials. The criminals received undue benefits from the company’s contractors in the amount of 10-15% of the value of contracts, using the so-called “barrier” scheme to control payments and the status of suppliers.
The scheme involved a former deputy head of the State Property Fund, who became an advisor to the Minister of Energy, and a former law enforcement officer, who was the executive director of physical protection at Energoatom. Law enforcement officers found that the actual management of a strategic enterprise with an annual revenue of over UAH 200 billion was carried out by unauthorized persons without formal authority.
In addition, the NABU uncovered the “Legalization” scheme, in which a Kyiv office associated with the family of former Russian MP Andrii Derkach laundered money through a network of non-resident companies. About $100 million passed through this scheme, keeping “black books” and issuing cash outside of Ukraine.
According to MP Yaroslav Zhelezniak, the members of the criminal organization identified so far include:
- former advisor to the Minister of Energy Ihor Myroniuk;
- dmytro Basov, Executive Director for Physical Protection and Security of Energoatom JSC;
- businessman and head of the criminal organization Timur Mindich;
- four people – employees of the back office for money laundering.
At the same time, NABU reported only on searches at Energoatom, without mentioning Mindich or Halushchenko.
For his part, President of Ukraine Volodymyr Zelenskyy emphasized the need for transparency at Energoatom and the inevitability of punishment for corruption schemes in the energy sector.
