Ukraine prosecutors search state railway offices in embezzlement probe

2017/6/14 13:35:55

Analyst: “The monitoring of procurements by top management - with the help of law enforcement bodies - may lead to significant progress in cost-cutting, which could reach as high as hundreds of millions of hryvnias, as estimated by prosecutors. We retain our neutral view on RAILUA bonds.”

 


KYIV, June 14, 2017 - Ukrainian prosecutors conducted a search on June 13 of the offices of state railway monopoly Ukrzaliznytsia (UZ, RAILUA) with the cooperation of its top management, Concorde Capital informed clients based on a company report on June 13. The search was conducted as part of an investigation of the embezzlement of “hundreds of millions of hryvnias," the News One television network reported, citing a prosecution official. Currently, prosecutors suspect a locomotive department manager in embezzling about UAH 12 mln. He is suspected in the procurement of materials of substandard quality in 2015-2016. The investigation "is being conducted at the initiative of company top management and in tight cooperation with the prosecutor general's office," the company said.

 

Concorde analyst Alexander Paraschiy added: “It would be a positive development if the investigation was indeed initiated by Ukrzaliznytsia top management. The procurement of goods and services for a railway monopoly with total material costs of about UAH 20 bln p.a. is a key source of inefficiency and money waste. The monitoring of procurements by top management - with the help of law enforcement bodies - may lead to significant progress in cost-cutting, which could reach as high as hundreds of millions of hryvnias, as estimated by prosecutors. We retain our neutral view on RAILUA bonds.”

 

###

 

For more information, link here: www.concorde.ua

Printer Friendly Page Send this Story to a Friend Create a PDF from the article