Skip to content
Edit post

Ukraine's audit agency says state-owned energy company Centrenergo in 'state of crisis'

by Nate Ostiller November 29, 2023 8:20 PM 2 min read
Workers pass by coal being unloaded for the Ukrainian state-owned energy company Centrenergo in Odesa, Ukraine, on Sept. 13, 2017. (Vincent Mundy/Bloomberg via Getty Images)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

An audit by Ukraine's State Audit Service of the state-owned energy company Centrenergo found a number of financial discrepancies, as well as lengthy and unjustified delays on repair work for damaged energy infrastructure, the agency said on Nov. 29.

The financial discrepancies, which included accounting irregularities, unfulfilled contracts, debts, hidden lending, and other questionable commercial decisions, amounted to Hr 5.5 billion ($152 million).

Alla Basalaieva, the head of the State Audit Service, said that the company is in "a state of crisis" and detailed a litany of concerning business decisions.

Although no deliberate criminal wrongdoing was explicitly mentioned, the press release did say that the matter was being referred to the Security Service of Ukraine.

In a separate press release, the audit service said that Centrenergo had delayed much-needed repairs of critical energy infrastructure damaged by Russian attacks.

In one particularly egregious case, a replacement for a transformer destroyed in a Russian attack was not delivered for more than six months, even though it was available and had passed all standard safety requirements. Work began on replacing the transformer only as the weather became cold.

It is unclear why there was such a lengthy delay.

"These (unrepaired) facilities are of strategic importance for the restoration of power-generating capacities, and especially in the conditions of new threats from the enemy to civil infrastructure," said Basalaieva.

‘We have to speed up:’ European Investment Bank head Hoyer calls for swift reconstruction of Ukraine
Werner Hoyer, the head of the European Investment Bank (EIB), and its vice-president Teresa Czerwinska visited Kyiv on Nov. 27 to announce a new 450-million-euro package ($493 million) to Ukraine and inaugurate the bank’s new regional hub in the capital. The sum, approved by the EIB on Nov. 15,

News Feed

10:21 PM

Zelensky meets Britain's King Charles.

President Volodomyr Zelensky met with Britain's King Charles on July 18, and in a post on social media thanked the U.K. for being "one of Ukraine's closest and most important allies."
Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
3:15 PM

Compassion alone 'will not protect Ukraine,' Danish PM says.

Ukraine's partners must continue to deliver support and scale up their own military capabilities, as compassion "will not protect Ukraine," Danish Prime Minister Mette Frederiksen said at the European Political Community Summit on July 18, attended by a Kyiv Independent reporter.
2:34 PM

When Russia attacks, they come: Ukraine's first responders.

Rescuers of the Mobile Rescue Center of the State Emergency Service come to the sites of aerial attacks to sort through the most difficult rubble in search of living and dead people. We followed them to understand what it takes to be a first responder in wartime Ukraine.
12:17 PM

Zelensky arrives in UK, meets Zaluzhnyi.

President Volodymyr Zelensky landed in the U.K. on July 18, where immediately met Valerii Zaluzhnyi, Ukraine's former commander-in-chief and recently-appointed ambassador to the U.K.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.