The court cancelled the State Audit Service’s demand to Naftogaz to return UAH 229 million of bonuses paid to Kobolyev to the state
9 October 2024 17:42
Judges have radically changed their minds in the case of Kobolyev’s multi-million dollar bonus and issued a ruling that contradicts several previous ones.
Back in 2021, the head of Naftogaz, Andriy Kobolyev, was obliged to return his bonus of almost UAH 229 million according to the audit report of the State Audit Service. This was initially confirmed by decisions of two courts. However, at the end of September this year, the situation in this matter changed dramatically, according to the Register of Court Decisions.
Thus, in 2018, in the absence of a government-approved financial plan, in violation of Resolution No. 899 of the Cabinet of Ministers of Ukraine and the Collective Bargaining Agreement, bonuses of UAH 228 million 834 thousand were paid to the Chairman of the Board of Naftogaz. This resulted in losses of the above amount, which was established by the State Audit Service on the basis of the audit report No. 05-21/6 dated 27 December 2018.
Naftogaz appealed the decision of the State Audit Service
The Public Joint Stock Company “National Joint Stock Company “Naftogaz of Ukraine” filed an administrative claim against the State Audit Service of Ukraine with the District Administrative Court of Kyiv, in which it requested “to recognise as unlawful and cancel the requirement of the State Audit Service of Ukraine dated 20.02.2019 No 05-14/92-2019“.
The decision of the District Administrative Court of Kyiv dated 07.10.2019 dismissed the claim. The legitimacy of the State Audit Service’s claim was also subsequently confirmed by the appellate court.
“By letter dated 20 February 2019 No. 05-14/92-2019, the State Audit Service sent a demand to Naftogaz of Ukraine to eliminate violations regarding this award. In its turn, the politician noted, Naftogaz challenged the State Audit Service’s demand in court, but both the court of first instance and the court of appeal upheld the State Audit Service’s demand,” MP Oleksiy Kucherenko commented on the situation at the time.
New court – new decision
Meanwhile, the Resolution of the Sixth Administrative Court of Appeal dated 23 September this year has now been published in the Register of Court Decisions.
It states that the decision of the District Administrative Court of Kyiv dated 07.10.2019 and the decision of the Sixth Administrative Court of Appeal dated 23.07.2020 were cancelled by the Supreme Court’s Resolution of 12.03.2021. Accordingly, the case was then sent for reconsideration to the court of first instance.
Following a new trial, the decision of the Kyiv District Administrative Court of 11 August 2021 dismissed Naftogaz’s administrative claim against the state auditors in its entirety. And “by the decision of the Sixth Administrative Court of Appeal of 09.12.2021, the appeal of the Public Joint Stock Company National Joint Stock Company Naftogaz of Ukraine was dismissed, and the decision of the District Administrative Court of Kyiv of 11 August 2021 was upheld.”
Now Kobolyev himself was against it
Disagreeing with the previous court decisions, the former head of Naftogaz filed an appeal, in which he asked the judges to satisfy Naftogaz’s claim. In other words, he asked to be allowed not to return the bonus.
By the decision of the Sixth Administrative Court of Appeal of 24.04.2023, Kobolyev was denied the right to open an appeal.
However, later, by a ruling of the Supreme Court as part of the panel of judges of the Administrative Court of Cassation of 18.10.2023, the judges upheld Kobolyev’s cassation appeal and sent the case for further consideration to the Sixth Administrative Court of Appeal.
Another judicial circle
The decision of the Sixth Administrative Court of Appeal of 15.02.2024 dismissed Kobolyev’s appeal and upheld the decision of the District Administrative Court of Kyiv of 11 August 2021 (in favour of the auditors).
But later, by the decision of the Supreme Court as part of the panel of judges of the Administrative Court of Cassation of 02.07.2024, Kobolyev’s cassation appeal was partially satisfied, and the decision of the Sixth Administrative Court of Appeal of 15.02.2024 was cancelled and case No. 640/3186/19 was sent to the court of appeal for a new trial.
Kobolyev considers auditors to be the reason for his criminal prosecution
In his explanations to the court, Kobolyev argued that the auditors’ allegedly “controversial” demand to return the UAH 229 million bonus to Naftogaz “has negative consequences for him in the form of suspicion of a criminal offence”.
The State Audit Service of Ukraine, in turn, explained that its demand to Naftogaz to return the bonuses paid to Kobolyev was related to the damage caused to the company and “it did not violate the rights of Naftogaz in any way”.
What the court decided
In the end, the judges ruled to cancel the claim of the State Audit Service of Ukraine against Naftogaz to return the funds paid to Kobolyev as a bonus to the state.
“The decision of the District Administrative Court of Kyiv of 11 August 2021 and the decision of the Sixth Administrative Court of Appeal of 09 December 2021 shall be cancelled and a new decision shall be made to satisfy the administrative claim of the Public Joint Stock Company National Joint Stock Company Naftogaz of Ukraine against the State Audit Service of Ukraine to declare the claim unlawful and cancel it.
To recognise as unlawful and cancel the requirement of the State Audit Service of Ukraine dated 20 February 2019 No. 05-14/92-2019,” the in the decision.
As a reminder, NABU suspects Kobolyev of embezzling over UAH 229 million in 2018. His actions were classified under Part 5 of Article 191 of the Criminal Code of Ukraine (misappropriation, embezzlement or seizure of property through abuse of office).
The HACC is currently considering the case in court.
