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Economy 2019-05-15T05:43:45+03:00
Ukrainian news
Naftogaz Suspends Ukrtransgaz President Prokopiv

Naftogaz Suspends Ukrtransgaz President Prokopiv

National Joint-Stock Company Naftogaz of Ukraine has suspended President of Ukrtransgaz, the operator of the national gas transport system (100% owned by Naftogaz), Ihor Prokopiv.

Ukrainian News Agency learned this from a Naftogaz's statement.

"Based on the Ukrtransgaz charter, Mr. Myroslav Khymko, first vice-president of Ukrtransgaz, will assume management of Ukrtransgaz. Naftogaz and Ukrtransgaz stress that the transition in management will have no impact on the Ukraine's gas supplies to customers and that gas transit will continue in full accordance with contractual obligations," it reads.

The group's external auditor Deloitte & Touche has identified a number of irregularities during a formal review of Ukrtransgaz accounts. These issues were further investigated by both the external auditor and the newly established Naftogaz internal audit function, which reports to the audit committee of the Supervisory Board.

"The follow up investigations have confirmed the initial findings and resulted in a more detailed confirmation of mismanagement in the procurement of services. The current findings have prompted further parallel investigations on a broader front," the company said.

As part of its transformative corporate governance reform, Naftogaz is implementing a new internal controls system across all group companies. Similar internal audit reviews are now being launched in all subsidiaries to ensure compliance with relevant policies and legislation.

As Ukrainian News Agency earlier reported, Naftogaz Board on January 19 decided to send to the Supervisory Board a proposal to suspend Prokopiv.

According to a Naftogaz source, the point of the National Company's complaints against Prokopiv was inappropriate conduct of bidding procedures.

On December 14, 2016, the Cabinet of Ministers approved a new version of Naftogaz Charter which substantially curbs the powers of the Board.

Now, the Board is obliged to coordinate with the Supervisory Board decisions of appointment/dismissal/suspension of chief executives of its subsidiaries (Ukrtransgaz, Ukrtransnafta, UkrGasVydobuvannya).

The Supervisory Board meanwhile gained the right to cancel such Board's decision in respect of the subsidiaries' leadership.

In September 2016, Naftogaz Chief Executive Officer Andrii Kobolev pushed for Prokopiv's dismissal.

Больше новостей о: Naftogaz Naftogaz of Ukraine Ukrtransgaz Ihor Prokopiv