Shipment of the UMCC products is temporarily suspended to prevent the former company management’s corruption schemes
To ensure the State interest and elimination of corruption schemes, the temporarily acting Chairman of the Board of JSC “United Mining and Chemical Company” Peter Davis has suspended the enterprise’s products shipment. This decision will not affect the production process and payment of salaries on the plants, belonging to the UMCC’s structure.
On May 22-23, 2020, the new management of UMCC in cooperation with the NABU blocked illegal transit of 20 thousand tons of titanium-containing raw materials through Odessa Commercial Sea Port, thus preventing state losses in the amount of UAH 80 million.
“The Fund’s leadership and the new Board of UMCC stand firmly on position of the preserving state property. Therefore, I welcome the decision of the UMCC’s Board to suspend further shipment of the UMCC’s products, pending investigation. Decisive actions of the company’s management and the law enforcement authorities show results. Transparency and fight against corruption are key to success for the future privatization”, Dmytro Sennychenko, Head of the State Property Fund of Ukraine, stated.
According to the contracts, concluded by the former management of UMCC, titanium-containing raw materials would be transferred to a little-known intermediary company with the off-shore status, whose outstanding receivables to UMCC is UAH 400 million. At the time the contract was concluded, in the middle of December, 2019, the market value of titanium-containing raw materials was USD 220-240 per ton, instead USD 150, indicated in the contract.
Taking into account the obvious corruption component at the conclusion of the above-mentioned contract, the temporarily acting Chairman of the UMCC’s Board Peter Davis has suspended all raw materials shipment operations. The new UMCC’s leadership emphasizes that company’s product sales will be carried out exclusively at market prices and without off-shore intermediary companies. Raw materials shipment will be resumed immediately after complete elimination of the former UMCC’s management influence on the enterprise’s operational activities.
“We took the strategic decision to suspend the shipment of raw materials in order to prevent spreading of corruption schemes. However, it won’t affect the production process on the plants, belonging to the UMCC structure, and payment of salaries to the employees. Only when corruption schemes are eliminated, we’ll be able to bring company to a new level, provide improvement of the production and financial indicators and pay increases”, Peter Davis noted.