The government will inspect the largest state-owned enterprises

Government launches a comprehensive audit of the largest state-owned enterprises

Ukraine launches comprehensive inspection of all major state-owned enterprises, including structures in the energy, defence and transport sectors. This was announced by Prime Minister Yulia Sviridenko.

According to her, the focus will be on procurement transparency, financial control and management efficiency.

Details of the initiative

Svyrydenko clarified that the supervisory boards of state-owned companies received the instructions within their powers:

• hold analysis of the activities of executive bodies;

• check compliance with procurement procedures;

• study financial transactions and risks;

• prepare official opinions and reports to the Government;

• In case of violations, the following take additional control measures.

The following are subject to inspection, in particular:

• Naftogaz,

• Ukroboronprom,

• Ukrzaliznytsia,

• Ukrhydroenergo,

• state-owned banks.

The Prime Minister stressed that this is part of strengthening the system of anti-corruption safeguards and a requirement of international partners amid large-scale investigations in the public sector.

Context.

After a series of corruption scandals in the energy and defence sectors, the Ukrainian government announced a course to revise its approach to managing state-owned enterprises.

The supervisory boards of large companies have been repeatedly criticised for their lack of control and weak response to risks.

Audit reports can serve as a basis for personnel decisions and reorganisation of certain government agencies.