SAP: Case Against Former Officials Over 12 Million Hryvnias in Damages to Centrenergo Sent to Court

The Specialized Anti-Corruption Prosecutor's Office (SAP) has made a significant announcement regarding the referral of a case to court that involves two former top officials and the director of a state enterprise. These individuals are suspected of engaging in activities that have caused substantial financial harm to PJSC Centrenergo, one of the largest energy-generating companies in Ukraine. This situation has become particularly critical in light of the ongoing energy crisis exacerbated by the aggression of the Russian Federation.

In a detailed update shared on their Telegram channel on Monday, October 23, 2023, SAP elaborated on the circumstances surrounding the case. The investigation focuses on a former Deputy Minister of Energy, who also held the status of a Member of Parliament and served as the First Deputy Chairman of the Verkhovna Rada Committee on Construction. Additionally, it involves the former director of the state enterprise Ukrvuhillia. All these individuals are suspected of colluding in a scheme that has resulted in serious financial losses for the state.

According to information provided by SAP, in July 2022, the Cabinet of Ministers of Ukraine mandated the state enterprise Ukrvuhillia to supply coal to designated electricity producers, including PJSC Centrenergo. This decision was made to ensure a stable heating season for 2022/2023. However, during the pre-trial investigation, detectives uncovered that despite existing restrictions, the ultimate owner of a private company, in collusion with the former Deputy Minister of Energy, persuaded the director of Ukrvuhillia to sell coal exclusively to his company.

It is important to note that the private company that received the coal already had debts exceeding 50 million hryvnias at the time of the deal. As a result, this company acquired nearly 24,000 tons of coal, which it later resold at a higher price, generating a profit of 20 million hryvnias. Consequently, the private company reaped significant financial benefits, while PJSC Centrenergo suffered considerable losses.

As stated in SAP's announcement, PJSC Centrenergo was deprived of 12,500 tons of coal, which it was forced to repurchase in October 2022 at a significantly higher price than that during the preparations for the heating season. This situation led to losses for the company amounting to nearly 12 million hryvnias. Thus, the actions of the suspects not only violated the law but also resulted in serious financial repercussions for the state-owned company.

The pre-trial investigation in this case was conducted by detectives from the National Anti-Corruption Bureau of Ukraine (NABU) under the procedural guidance of SAP prosecutors. This case is part of a broader fight against corruption in Ukraine, especially at a time when the country is facing serious challenges in the energy sector.