Naftogaz is not allowing representatives of the State Audit Service to enter: The Verkhovna Rada's temporary commission is demanding an audit of the company and its subsidiaries.

Naftogaz is not allowing the State Audit Service to enter

Naftogaz is not allowing the State Audit Service to enter

Deputies want to know how Naftogaz generates its revenue, why it is incurring losses, and why production is declining.

A temporary special commission of the Verkhovna Rada will recommend that members of parliament adopt a decision on the audit of Naftogaz Ukrainy and its subsidiaries. The decision, the text of which is available, is available. ZN.UA, the commission adopted following the hearings on the work of the joint-stock company “National Joint-Stock Company “Naftogaz of Ukraine”.

One of the reasons that prompted the commission members to make this decision was the fact that Naftogaz and its subsidiaries have not allowed representatives of the State Audit Service to conduct inspections for a long time (with the exception of JSC Ukrgazvydobuvannya).

At the same time, the members of the Supreme Audit Committee emphasize that the previously conducted audit of NAK Naftogaz of Ukraine, in particular the financial one, only answered the question of whether the company itself accurately reflected its documents in accordance with international accounting standards.

"If, under martial law, parliamentarians recognize that Naftogaz of Ukraine is fulfilling strategic objectives, then oversight over it should not be limited to the government, which must simultaneously address hundreds of pressing issues," the VSK believes.

Such oversight, in particular, should be exercised by a strict supervisory board composed of undisputed industry experts with impeccable reputations, untainted by collaboration with the enemy or fifth columnists. However, such a supervisory board has been absent for a long time.

"The State Audit Service's task will be to understand and explain to Naftogaz's shareholder (the Government) which management decisions led to the NAK's income/losses and why," the VSK members believe.

In addition, an audit of JSC Ukrgazvydobuvannya with a full analysis of the reasons for the decline in production is also required.

Going forward, there should be two programs: the first, how to halt the decline in hydrocarbon production; the second, how to increase production in Ukraine. Particular attention should be paid to analyzing Ukrgazvydobuvannya's equipment and service purchases to determine how they met the targets in terms of volume, product range, and price.

It is also necessary to put an end to the situation in which the Ukrainian Gas Transmission System Operator LLC was forced to become the “sponsor” of Naftogaz.

Members of the VSK will also insist on appealing to the AMCU regarding the predominant (monopoly) status of Naftogaz and its trading companies in the market.

As a reminder, the previous attempt to audit Naftogaz in the Verkhovna Rada took place on the eve of the war. Specifically, Verkhovna Rada Speaker Ruslan Stefanchuk instructed the newly appointed Chief of Staff of the Verkhovna Rada to audit all of the company's purchases, noting that he had no logical explanation for a significant portion of them.

Why won't they let the State Audit Service in?

In August, MP Oleksiy Kucherenko announced a large-scale audit of Naftogaz and its subsidiaries. The MP recalled that, following numerous inquiries to the State Audit Service, he discovered that Naftogaz was not allowing the State Audit Service to audit its subsidiaries. The rationale was that the subsidiaries were owned by Naftogaz, not the state.

He emphasized that the reporting of Naftogaz structures is a closely guarded secret, to which no one is allowed to have public access.

Earlier, the Verkhovna Rada's Temporary Commission published its conclusion that maintaining Naftogaz's revenues posed a threat to Ukraine's energy security, as it was carried out through the forced reimbursement by the Ukrainian Gas Transmission System Operator of funds for "adjusting the necessary income" of the Naftogaz group.

In 2021, under this agreement, OGTSU paid the Naftogaz group UAH 30,7 billion.

The total planned payment under this agreement in 2022 is 2,9 billion. However, in fact, approximately 8 billion UAH has already been paid to the Naftogaz Group over the first seven months of 2022, or 5 billion more than the planned amount.

As a result, the GTS Operator found itself in a grave financial situation, which posed a threat to Ukraine's energy security.

By topic: The State Audit Service found violations worth UAH 13 billion at Energoatom.

Ukrzaliznytsia, Customs, and Naftogaz: What losses did the State Audit Service uncover in 2020?

The State Audit Service sent the results of its audit of Naftogaz to the Security Service of Ukraine (SBU).

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