The Ministry of Infrastructure conducted an audit of the economy entrusted to it and identified a dozen and a half schemes for withdrawing funds from state-owned companies. Deputy Minister Vladimir Shulmeister described each method and proposed a recipe for their elimination
Most Ukrainian state-owned enterprises (SOEs) are more like criminal gangs than businesses. That is, the goals of the SOE management are the same as those of management in business - to earn more money, but due to an incorrectly structured motivation system, efforts are directed in the wrong direction. The state decided to limit management remuneration and, as a result, the river flowed in a different direction.
Forget about the complex financial schemes from Hollywood films, the main thing for Ukrainian SOEs is to have a political and security roof. That's the whole trick. The rest is a matter of technique. Therefore, all the papers are beautifully designed, but the essence is completely contrary to the law and often common sense.
Mnemonic rule! If you look at the statements of a state enterprise and see that, despite the turnover (it differs significantly from year to year), the enterprise shows a financial result of “near zero” every year, then you know that they are definitely stealing!
Some cases can already be called history, some are quite recent. The necessary checks were carried out on all of them, and the materials were sent to the prosecutor's office. The result is well known to everyone. Let's start with the simplest schemes.
The first thing we did when we arrived at the ministry was conduct an audit of the cash balances of enterprises in banks. It turned out that the main holders of funds in banks of the third and fourth ten are SOEs. It happened that almost half of the bank's liabilities were formed by one or two state enterprises. Some banks were “pocket” - connected with the director of the state enterprise, some received state resources through kickbacks. The SOE did not have any risk management, so, unfortunately, not all the money was saved. Part of it was burned in insolvent banks, such as in National Credit - 34 million UAH of Boryspil and 65 million UAH of Ukrposhta, in Delta Bank - 7 million UAH and ZlatoBank - 58 million UAH. Moreover, in the case of Ukrposhta, the current account was opened in September 2014.
The main topic (operational damage) is the reduced rates on funds stored in banks, for which SOE managers received monthly payments from banks. For example, 100 million UAH of the Ilyichevsk sea trade port were in private banks for a year and a half, at an effective rate of 3% per annum.
Scheme 1
"Keep your money in a savings bank"
Hundreds of millions of hryvnia
HOW TO DECIDE: During times of instability, it is necessary to transfer most of the funds of state-owned enterprises to state-owned banks, and then increase the responsibility of financial directors for managing cash balances. Once the banking system has been stabilized, efficient use will be a priority. Transparency of balances is also necessary - how much, where and at what interest.
Scheme 2
"Sale"
Billions of hryvnia
HOW TO DECIDE : Appointment of professional directors. There is already a mechanism for appointment through competitions, but current salaries do not allow attracting high-class managers, so fewer quality participants come to competitions than we would like. Improvements to the compensation mechanism are being developed by the Ministry of Economic Development and Trade and should occur before the end of the year. This mechanism needs to be widely publicized already at the development stage. At the same time, it is necessary to increase the transparency of enterprise income. Information on selling prices should be available online. The corresponding legal mechanisms are currently being developed by the Ministry of Internal Affairs and the working group on open data under the Ministry of Regional Development.
Scheme 3
"It's gone." Advance payment for nothing
Tens of millions of hryvnia
HOW TO DECIDE: professional directors and transparency of construction projects.
At the Zaporozhye Electric Locomotive Repair Plant, reserves of individual spare parts were discovered, which will last the plant for 10 years, when working in four shifts. This "strategic reserve" was made by the last director in the first year of taking office. Now he doesn't work there. The new director is trying to return the parts to the suppliers and collect the money. It is not surprising that it was for these spare parts that the purchase price was the most inflated.
A classic of the “purchasing” genre is prescribing the terms of the competition for a specific winner. In December 2014, thanks to a complaint from the Danish Ambassador, we stopped one tender of the Ukrainian Sea Ports Administration. Then the documentation for the purchase of paint stipulated the condition that the paint must be in containers of 405 liters. And of course, such paint from the winner cost the state twice as much as the same paint, but from cans of a different volume.
Scheme 4
"Everything is expensive these days"
Billions of hryvnia
HOW TO DECIDE: transfer all purchases into electronic form (already carried out through the ProZorro system), with disclosure of all the terms of the signed contract. It is also necessary to disclose the reasons for certain purchases. This can be solved through the implementation of ERP systems in the enterprise, as well as additional transparency. Now MIU, together with the CoST initiative, is developing a methodology for disclosing information at all stages of construction projects: from planning to operation. The results of the first three pilot projects will be available this year.
Here we found traces of crime in almost every industry. Apparently such “successful” experience is transferred between industries especially quickly. It works like this: software is ordered from the supplier company. Our GP pays a lot of money for this and almost always with an advance payment. The software is created and delivered on the GPU in the form of closed code. After this, the GP continues to pay monthly royalties (the software remains the property of the supplier!), and additionally for each change. It is very difficult to jump off such a needle - after all, “it is unknown how it works!” and “everything will work out for us!” And now the most exciting thing - often the creators of such software from an unknown supplier work in the IT department of the customer! A good example is the company UNIT, which liga.net wrote about.
Scheme 5
"Technoigla"
For the development of the “Electronic ticket” system, Ukrzaliznytsia paid the company “UnIT” 20 million UAH.
In addition, the private company receives millions of hryvnia in royalties annually
Tens of millions of hryvnia
HOW TO DECIDE: professional directors with clear motivation. In addition, the state must fully control such IT systems. This will prevent becoming dependent on external developers and will allow the integration of interdepartmental systems, such as border guards, customs officers and transport workers (and later the Ministry of Internal Affairs) systems at checkpoints.
This is how, for example, the rental of property in the Odessa port appeared for 8 UAH per m2 per month. Openness does not help; often the terms of the competition are tailored to the winner.
Scheme 6
"Fly in Cheaper!"
Hundreds of millions of hryvnia
HOW TO DECIDE: optimize the leasing procedure (the SPFU is doing this), amend the law on concessions, open information about all current contracts. We turned to leading real estate companies to attract interested parties for large properties for rent/sale.
Most tenants go even further: they issue bills for “repairs” in such an amount that they take the ship back through the court. Other lawsuits can also be initiated for any reason (for example, fictitious debt for fuel) and the ship is arrested. Deprived of income, SOEs are unable to hire international lawyers: dozens of our ships are now sailing somewhere in India or the Mediterranean Sea.
As a recent example, in 2013, the UDP enterprise leased (on a voyage charter) the steamship Tatarbunary. This type of charter is not approved by the ministry. For some time the ship made voyages, but in July 2014 it was arrested in Turkey on the claim of an unknown London company, which “bought the ship’s debt” to another unknown, but now Cypriot, company. The debt is probably fictitious, but there is a real threat of a local Turkish court making a decision to sell the ship at auction for the debts. Fortunately, the UDP's financial situation allows it to hire lawyers and fight in Turkish court.
Scheme 7
"How ships are seen off"
Hundreds of millions of hryvnia
HOW TO DECIDE: According to lawyers, it is still possible to “get” abandoned ships. To do this, it is necessary to hire a team of international lawyers who will work for part of the property awarded in favor of Ukraine. To prevent this problem from recurring in the future, the same professional directors are needed.
Scheme 8
"Bring back the goose!"
20-30% of the amount of overdue debt - tens of millions of hryvnia
HOW TO SOLUTION: transparency and use of e-procurement. For example, all Ukravtodor debt is already available online on the ministry’s website.
One example of such practice is a hotel in the Odessa port. There, a private minority shareholder owns a 20% share, and due to the fact that the property is not legally divided, his signature is required on all contracts . This allows him to block any management other than his own. As a result of the conflict, the hotel has been idle for three years and is slowly collapsing.
Scheme 9
"Let's join hands, friends"
Hundreds of millions of hryvnia
HOW TO DECIDE: changes to the concession law, as well as large-scale privatization, will eliminate the need for such joint activity agreements.
Scheme 10
"New life"
Tens of millions of hryvnia
HOW TO SOLUTION: Monitor the assessment process before disposal.
There are joint venture agreements in which there are investment obligations. Some private companies overestimated the amount of investment tenfold (for example, a crane costs $1 million, but according to documents it is bought for $10 million - the seller then returned the difference in cash). Thus, the state’s share in the SD was gradually eroded. The most famous such scheme is the first SD of the container terminal in the Ilyichevsk port. Then, ultimately, the contract was torn up by the court.
Scheme 11
Share blur
Hundreds of millions of hryvnia
HOW TO DECIDE: changes to the concession law, as well as large-scale privatization, will eliminate the need for such joint activity agreements.
Scheme 12
Synthesis
Tens of millions of hryvnia
HOW TO DECIDE: professional directors with clear motivation.
And then the most interesting thing: having worked out the scheme, the commercial enterprise sues the state enterprise, disputing some of its payments or justifying the need for a discount. The GP does not appear in court or does not defend himself very willingly. The courts confirm the discounts and cancel the payments, and after several years of such directorship, the GP turns to the budget for help (after all, money is no longer received for the maintenance of the necessary infrastructure, and the obligations are written out in regulations).
The history of the State Enterprise River Ports Administration (RPA) almost completely repeats this pattern. The ARP maintains strategic infrastructure on the river, funding it through user fees. A few years before the Revolution of Dignity, the company's management lost several court cases in which some river port operators were exempted from these fees, and since then they have not paid these fees. The SOE has accordingly greatly reduced its capital asset renewal program.
Scheme 13
The fairest court in the world
Hundreds of millions of hryvnia
HOW TO DECIDE: legislative regulation that removes exceptions.
The procedure is as follows: MPPZhT’s VAT obligations from core activities per year amount to about UAH 30 million. The company buys grain for 150 million UAH (+ takes into account a 30 million VAT credit) and sells it for export for 155 million UAH at a zero rate (which means there are no VAT obligations). That’s it, the company no longer owes VAT to the state. In this case, the grain passes only on paper; MPPZHT does not perform any storage or transportation. Grain traders say that for such optimization, grain suppliers on the market pay 35-45% of the VAT amount, which in our case should be 10-13 million UAH, the company receives only 5 million UAH (sold at 155, bought at 150). I wonder where the other 8 million are?
At the same time, it turned out that if you remove the income from such trading operations, then the enterprise is unprofitable! Which once again shows the priorities of the top management team.
Scheme 14
"Grain in the Way"
HOW TO DECIDE: professional directors with clear motivation and avoidance of non-core activities.
Scheme 15
"Mislanded Cossacks"
Colossal. Not subject to evaluation!
A very important factor in minimizing theft schemes at SOEs is to increase the responsibility of SOE managers for theft (this applies to all the described schemes). As soon as the state’s punitive system starts working, namely the prosecutor’s office and the courts, the budget will immediately feel the increased responsibility of directors. This will immediately be expressed in increased payments: income tax, payment of dividends, etc. At the same time, resources will appear for the technical re-equipment of our enterprises and for increasing wages.
Well, the main solution to many problems is large-scale privatization under the guidance of international consultants.
(с) VLADIMIR SHULMEISTER.
At the service of the people. How billions are withdrawn from state-owned companies
When we arrived at the ministry, we created a special group of analysts, which was given the task of analyzing business processes in state-owned companies and identifying where, how and who steals from the state. The first results of our team’s work: 15 schemes for withdrawing funds from state-owned companies
Most Ukrainian state-owned enterprises (SOEs) are more like criminal gangs than businesses. That is, the goals of the SOE management are the same as those of management in business - to earn more money, but due to an incorrectly structured motivation system, efforts are directed in the wrong direction. The state decided to limit management remuneration and, as a result, the river flowed in a different direction.
Forget about the complex financial schemes from Hollywood films, the main thing for Ukrainian SOEs is to have a political and security roof. That's the whole trick. The rest is a matter of technique. Therefore, all the papers are beautifully designed, but the essence is completely contrary to the law and often common sense.
Mnemonic rule! If you look at the statements of a state enterprise and see that, despite the turnover (it differs significantly from year to year), the enterprise shows a financial result of “near zero” every year, then you know that they are definitely stealing!
Some cases can already be called history, some are quite recent. The necessary checks were carried out on all of them, and the materials were sent to the prosecutor's office. The result is well known to everyone. Let's start with the simplest schemes.
1. Keep your money in a savings bank
Difficulty level: easyThe first thing we did when we arrived at the ministry was conduct an audit of the cash balances of enterprises in banks. It turned out that the main holders of funds in banks of the third and fourth ten are SOEs. It happened that almost half of the bank's liabilities were formed by one or two state enterprises. Some banks were “pocket” - connected with the director of the state enterprise, some received state resources through kickbacks. The SOE did not have any risk management, so, unfortunately, not all the money was saved. Part of it was burned in insolvent banks, such as in National Credit - 34 million UAH of Boryspil and 65 million UAH of Ukrposhta, in Delta Bank - 7 million UAH and ZlatoBank - 58 million UAH. Moreover, in the case of Ukrposhta, the current account was opened in September 2014.
The main topic (operational damage) is the reduced rates on funds stored in banks, for which SOE managers received monthly payments from banks. For example, 100 million UAH of the Ilyichevsk sea trade port were in private banks for a year and a half, at an effective rate of 3% per annum.
Scheme 1
"Keep your money in a savings bank"
Hundreds of millions of hryvnia
HOW TO DECIDE: During times of instability, it is necessary to transfer most of the funds of state-owned enterprises to state-owned banks, and then increase the responsibility of financial directors for managing cash balances. Once the banking system has been stabilized, efficient use will be a priority. Transparency of balances is also necessary - how much, where and at what interest.
2. "Sale"
GP sells products/provides services at reduced prices. The difference is received by the director in a suitcase or offshore. A slightly more complex variation is a gasket company, which is connected with the director and buys out 50-100% of the state-owned company’s products, and then sells it at several times more expensive. For example, the Transsvyaz plant, which is part of the structure of Ukrzaliznytsia, sold 80% of its products through the gasket, citing the poor payment discipline of Ukrzaliznytsia. After the change of director, prices increased and the gasket disappeared.Scheme 2
"Sale"
Billions of hryvnia
HOW TO DECIDE : Appointment of professional directors. There is already a mechanism for appointment through competitions, but current salaries do not allow attracting high-class managers, so fewer quality participants come to competitions than we would like. Improvements to the compensation mechanism are being developed by the Ministry of Economic Development and Trade and should occur before the end of the year. This mechanism needs to be widely publicized already at the development stage. At the same time, it is necessary to increase the transparency of enterprise income. Information on selling prices should be available online. The corresponding legal mechanisms are currently being developed by the Ministry of Internal Affairs and the working group on open data under the Ministry of Regional Development.
3. “Canulo”, or Advance payment for nothing
Transfer prepayment for services/goods. They don’t get anything, the company turns out to be bankrupt, the main thing is not to forget to share it with the prosecutors. We often see examples in the form of unfinished projects. The Boryspil airport parking lot is a prime example. The contractor received an advance payment of UAH 93 million, but did not complete the work. The GP went to court.Scheme 3
"It's gone." Advance payment for nothing
Tens of millions of hryvnia
HOW TO DECIDE: professional directors and transparency of construction projects.
4. "Everything is expensive these days"
Receiving kickbacks for purchases made at inflated prices is a classic of corruption, and talking about it is quite boring, besides, with the help of electronic procurement, such simple schemes will soon die out as a class. There is another trick: SOEs love to buy excess and unnecessary things.At the Zaporozhye Electric Locomotive Repair Plant, reserves of individual spare parts were discovered, which will last the plant for 10 years, when working in four shifts. This "strategic reserve" was made by the last director in the first year of taking office. Now he doesn't work there. The new director is trying to return the parts to the suppliers and collect the money. It is not surprising that it was for these spare parts that the purchase price was the most inflated.
A classic of the “purchasing” genre is prescribing the terms of the competition for a specific winner. In December 2014, thanks to a complaint from the Danish Ambassador, we stopped one tender of the Ukrainian Sea Ports Administration. Then the documentation for the purchase of paint stipulated the condition that the paint must be in containers of 405 liters. And of course, such paint from the winner cost the state twice as much as the same paint, but from cans of a different volume.
Scheme 4
"Everything is expensive these days"
Billions of hryvnia
HOW TO DECIDE: transfer all purchases into electronic form (already carried out through the ProZorro system), with disclosure of all the terms of the signed contract. It is also necessary to disclose the reasons for certain purchases. This can be solved through the implementation of ERP systems in the enterprise, as well as additional transparency. Now MIU, together with the CoST initiative, is developing a methodology for disclosing information at all stages of construction projects: from planning to operation. The results of the first three pilot projects will be available this year.
5. "Techno-needle"
Level: intermediateHere we found traces of crime in almost every industry. Apparently such “successful” experience is transferred between industries especially quickly. It works like this: software is ordered from the supplier company. Our GP pays a lot of money for this and almost always with an advance payment. The software is created and delivered on the GPU in the form of closed code. After this, the GP continues to pay monthly royalties (the software remains the property of the supplier!), and additionally for each change. It is very difficult to jump off such a needle - after all, “it is unknown how it works!” and “everything will work out for us!” And now the most exciting thing - often the creators of such software from an unknown supplier work in the IT department of the customer! A good example is the company UNIT, which liga.net wrote about.
Scheme 5
"Technoigla"
For the development of the “Electronic ticket” system, Ukrzaliznytsia paid the company “UnIT” 20 million UAH.
In addition, the private company receives millions of hryvnia in royalties annually
Tens of millions of hryvnia
HOW TO DECIDE: professional directors with clear motivation. In addition, the state must fully control such IT systems. This will prevent becoming dependent on external developers and will allow the integration of interdepartmental systems, such as border guards, customs officers and transport workers (and later the Ministry of Internal Affairs) systems at checkpoints.
6. "Come on! Cheaper!"
Renting out is cheap, a little more complicated than selling, but more durable. Step one - the head of the state enterprise asks the ministry for permission to rent out the property, citing low occupancy, unprofitability and wear and tear. Often the low workload and heavy wear and tear were ensured by the head of the GP himself. Step two – the ministry, for “gratitude”, allows renting at the property commission. Step three - the documents are sent to the State Property Fund, from there to the regional office, which selects an appraiser (who will also “motivated” evaluate everything very cheaply) and holds a “competition”, which will be attended by one sponsor company, or with one or two front companies.This is how, for example, the rental of property in the Odessa port appeared for 8 UAH per m2 per month. Openness does not help; often the terms of the competition are tailored to the winner.
Scheme 6
"Fly in Cheaper!"
Hundreds of millions of hryvnia
HOW TO DECIDE: optimize the leasing procedure (the SPFU is doing this), amend the law on concessions, open information about all current contracts. We turned to leading real estate companies to attract interested parties for large properties for rent/sale.
7. "How ships are seen off"
The whole of Odessa will tell you about this scheme: the classics of boat rental. The concluded contract for renting a steamship (bareboat charter) states that repair costs borne by the lessee are included in the rental price. After which the ship leaves for distant countries, and millions of repairs and letters are sent to Ukraine stating that the rent will not be paid for the next 10 years.Most tenants go even further: they issue bills for “repairs” in such an amount that they take the ship back through the court. Other lawsuits can also be initiated for any reason (for example, fictitious debt for fuel) and the ship is arrested. Deprived of income, SOEs are unable to hire international lawyers: dozens of our ships are now sailing somewhere in India or the Mediterranean Sea.
As a recent example, in 2013, the UDP enterprise leased (on a voyage charter) the steamship Tatarbunary. This type of charter is not approved by the ministry. For some time the ship made voyages, but in July 2014 it was arrested in Turkey on the claim of an unknown London company, which “bought the ship’s debt” to another unknown, but now Cypriot, company. The debt is probably fictitious, but there is a real threat of a local Turkish court making a decision to sell the ship at auction for the debts. Fortunately, the UDP's financial situation allows it to hire lawyers and fight in Turkish court.
Scheme 7
"How ships are seen off"
Hundreds of millions of hryvnia
HOW TO DECIDE: According to lawyers, it is still possible to “get” abandoned ships. To do this, it is necessary to hire a team of international lawyers who will work for part of the property awarded in favor of Ukraine. To prevent this problem from recurring in the future, the same professional directors are needed.
8. "Bring back the goose!"
If a SOE has a large and long-overdue debt, then with a high degree of probability it can be assumed that the state has long ago received some product or service at an inflated price. Usually suppliers don't even think about getting a full settlement. But! Sometimes the director of the State Enterprise initiates new negotiations in the spirit of: “but you want to be settled with you.” For such bad and almost forgotten debts, creditors are willing to pay large discounts. Alas, this does not always end up in the treasury.Scheme 8
"Bring back the goose!"
20-30% of the amount of overdue debt - tens of millions of hryvnia
HOW TO SOLUTION: transparency and use of e-procurement. For example, all Ukravtodor debt is already available online on the ministry’s website.
9. "Let's join hands, friends"
A classic of joint activities: invest in the purchase of a 20% share in the enterprise, but specify your management in the agreement on joint activities (JA). Surprisingly, the State Enterprise signed such agreements. After this, one should not be surprised that the profit of such SDs tended to zero. At the same time, the private owner does not refuse to manage the facility; he blocks attempts to sell the state share in the board.One example of such practice is a hotel in the Odessa port. There, a private minority shareholder owns a 20% share, and due to the fact that the property is not legally divided, his signature is required on all contracts . This allows him to block any management other than his own. As a result of the conflict, the hotel has been idle for three years and is slowly collapsing.
Scheme 9
"Let's join hands, friends"
Hundreds of millions of hryvnia
HOW TO DECIDE: changes to the concession law, as well as large-scale privatization, will eliminate the need for such joint activity agreements.
10. "New life"
When some, still quite useful, asset is written off for scrap metal, but it doesn’t end up as scrap metal. The license plates on the vehicle are changed, after which it already exists somewhere with a different owner and a new life.Scheme 10
"New life"
Tens of millions of hryvnia
HOW TO SOLUTION: Monitor the assessment process before disposal.
11. Share blur
Master class and exoticaThere are joint venture agreements in which there are investment obligations. Some private companies overestimated the amount of investment tenfold (for example, a crane costs $1 million, but according to documents it is bought for $10 million - the seller then returned the difference in cash). Thus, the state’s share in the SD was gradually eroded. The most famous such scheme is the first SD of the container terminal in the Ilyichevsk port. Then, ultimately, the contract was torn up by the court.
Scheme 11
Share blur
Hundreds of millions of hryvnia
HOW TO DECIDE: changes to the concession law, as well as large-scale privatization, will eliminate the need for such joint activity agreements.
12. Synthesis
The company takes out a loan secured by fixed assets. He buys equipment several times more expensive, the director receives a suitcase of money from happy sellers. The loan is then not repaid, the bank takes the collateral, the director receives a second suitcase, and another suitcase is taken to the prosecutor's office. The scheme is rare.Scheme 12
Synthesis
Tens of millions of hryvnia
HOW TO DECIDE: professional directors with clear motivation.
13. The fairest court in the world
A commercial enterprise working with a state enterprise lobbies its director. Successful lobbying is followed by a series of events: the director issues an advance payment to the company for non-existent services, then sues to invalidate the contract. For part of this advance payment, the court says that the commercial enterprise has fulfilled its obligations and there can be no claims against it. The director of the State Enterprise does not challenge the court's decision.And then the most interesting thing: having worked out the scheme, the commercial enterprise sues the state enterprise, disputing some of its payments or justifying the need for a discount. The GP does not appear in court or does not defend himself very willingly. The courts confirm the discounts and cancel the payments, and after several years of such directorship, the GP turns to the budget for help (after all, money is no longer received for the maintenance of the necessary infrastructure, and the obligations are written out in regulations).
The history of the State Enterprise River Ports Administration (RPA) almost completely repeats this pattern. The ARP maintains strategic infrastructure on the river, funding it through user fees. A few years before the Revolution of Dignity, the company's management lost several court cases in which some river port operators were exempted from these fees, and since then they have not paid these fees. The SOE has accordingly greatly reduced its capital asset renewal program.
Scheme 13
The fairest court in the world
Hundreds of millions of hryvnia
HOW TO DECIDE: legislative regulation that removes exceptions.
14. "Grain in the Way"
The Kiev-Dnieper Interindustry Enterprise of Industrial Railway Transport (MPPPZhT) turned out to be a grain trader. Amazing, right? At first it was not clear why the enterprise, which is engaged in transportation on access roads, sells grain. And in large quantities. Core activities bring MPPZhT 270 million UAH of income, and grain exports – 170 million UAH! It turned out that this is a simple scheme for optimizing VAT.The procedure is as follows: MPPZhT’s VAT obligations from core activities per year amount to about UAH 30 million. The company buys grain for 150 million UAH (+ takes into account a 30 million VAT credit) and sells it for export for 155 million UAH at a zero rate (which means there are no VAT obligations). That’s it, the company no longer owes VAT to the state. In this case, the grain passes only on paper; MPPZHT does not perform any storage or transportation. Grain traders say that for such optimization, grain suppliers on the market pay 35-45% of the VAT amount, which in our case should be 10-13 million UAH, the company receives only 5 million UAH (sold at 155, bought at 150). I wonder where the other 8 million are?
At the same time, it turned out that if you remove the income from such trading operations, then the enterprise is unprofitable! Which once again shows the priorities of the top management team.
Scheme 14
"Grain in the Way"
HOW TO DECIDE: professional directors with clear motivation and avoidance of non-core activities.
15. "Mislanded Cossacks"
Intelligent and disciplined professionals have been working in the State Enterprises/ministries for years. For a meager salary, with a motivation that is incomprehensible at first glance (they mumble about interesting work and now fashionable patriotism). The analysis showed that these guys are infiltrators motivated by large holdings. They sit in key ministries and departments, forming a network of agents of influence through which financial and industrial groups have been managing to push laws/orders/decrees/regulations/tariffs in their interests for years. This happens at the expense of the state! These lobbyists have been receiving money from financial industrial groups for years, undermining the Ukrainian economy on a long-term basis.Scheme 15
"Mislanded Cossacks"
Colossal. Not subject to evaluation!
A very important factor in minimizing theft schemes at SOEs is to increase the responsibility of SOE managers for theft (this applies to all the described schemes). As soon as the state’s punitive system starts working, namely the prosecutor’s office and the courts, the budget will immediately feel the increased responsibility of directors. This will immediately be expressed in increased payments: income tax, payment of dividends, etc. At the same time, resources will appear for the technical re-equipment of our enterprises and for increasing wages.
Well, the main solution to many problems is large-scale privatization under the guidance of international consultants.
(с) VLADIMIR SHULMEISTER.
