Vitaly MIESHYN: "Redistribution involves powerful state structures"

Today, MAP Workforce Unit Ltd. remains one of the most lucrative enterprises, with its equity being the coveted target of certain powerful consortia. Meanwhile, the struggle for this enterprise continues on the domestic market, a place where one can manage free of charge. The enterprise is in the gun-sights of some quite well-known and influential people. People's Deputy Inna Bohoslovska stated at a press conference that she had seen at the Cabinet of Ministers a "paper signed by [Verkhovna Rada Speaker] Tkachenko, where it was written: 'In order to consolidate society's democratic forces, I request hand over controlling shares in MAP..." to a certain Verkhovna Rada division. But, as is known, the controlling packet (25% + 1 share) has been transferred to the Mykolayiv Oblast State Administration.

Meanwhile, it was recalled in Mykolayiv itself and, in particular, in the local State Property Fund office, that the Cabinet resolution on transferring the controlling shares to the oblast and city administration has not yet been canceled. Branch head Yevhen Kazansky thinks that "these shares should be managed on the regional level, for many problems are more evident from here. The more so that Kyiv began to show concern for MAP only now that the plant got into the blockade of Russian enterprises. Earlier, neither the ministries nor the government would support the plant. The plant management had to solve all its problems on its own."

Verkhovna Rada is to hear the report of a parliamentary fact-finding group that studied the way MAP was privatized.

In his interview with The Day MAP General Director Vitaly MIESHYN spoke about the current state of affairs at the plant.

"Why does the government intend to repeal its own recent decision and change the arrangements concerning the transfer of the state share in the MAP?"

"Because of continuous attempts by various entities to get ownership of the plant. After the decision to transfer the state share to the Mykolayiv Oblast State Administration, the Agency for Corporate Management of the State Property was supposed to fulfill the appropriate procedures and secure the irrevocable transfer of stock. However, this was never done, and the process was deliberately delayed for over two months under various pretexts. And the scheme is quite simple: if the Oblast Administration fails to receive its share, this will create the real possibility of concentrating about 60% of the stock in one hand (which Mr. Zhovtis tried to do recently through the Iren Joint Venture). This will be followed by an extraordinary shareholders' meeting, dismissal of the current director, and introducing new rules of the game. What is now happening is beneficial to the current owners of the Russian alumina complex, the TWG and Sibirsky Aluminy companies. And powerful governmental structures, deliberately or not, are helping them."

"Can you name these entities?"

"Of late, a very interesting position has been taken by Verkhovna Rada with its Speaker Oleksandr Tkachenko, who actually was the initiator of the state package reallocation. Many things have been done through the SBU (Ukrainian Security Service), first of all, attempts to discredit, defame the enterprise managers, and dismiss them. And this means the loss of the plant."

"The initiation of criminal proceedings by the SBU last December, followed by charges against seven MAP managers, had a major public response. What progress has been made so far in the matter?"

"As you know, I and my colleagues were charged with smuggling alumina, allegedly in 1992, and with illegal foreign exchange operations. The bias of the investigation was revealed from the very beginning: for example, two accused employees have nothing to do with the case whatever - the financial director was then on a long business trip in Mongolia, and the current head of the privatization department held a ground-level position and had no involvement in business activity outside the plant. The investigation itself was accompanied with numerous legal violations, attempts to trip the interrogated, and distortions of the facts. We and our lawyers have more than once filed protests against the investigation procedure, but they were never satisfied. Incidentally, the case as such was initiated as far back as 1992, it was closed twice and then reopened, and now they have decided to revive it again."

"But the major points of the new case include operations with foreign exchange and illegal credits."

"True, we did receive loans, $500,000 each of the seven of us. There is nothing special or surprising about this: the loan was granted against our shares in the MAP for a total of $3.5 million. We received those shares quite legally, according to privatization legislation. And buying out the shares required money. The shares were deposited in the First Ukrainian International Bank (FUIB), and a bank in Geneva opened a credit line for these shares. Nobody opened bank accounts abroad, and there was no reason to, because the money from the FUIB immediately was transferred to the State Property Fund account. On our part there was no misuse of any kind or violations, and this was officially confirmed by the FUIB and the National Bank. These documents are now in the Mykolayiv Oblast SBU Department, to this same department the Oblast Prosecutor sent a protest that the accusation was unfounded, and demanded the investigation be stopped."

"Why don't they close the case then?"

"Head of the SBU Department Mytroshkin told the press that the case would be brought to the court by all means. In addition, during the President's visit to the plant in late December, an SBU Central Apparatus senior official addressing the plant employees portrayed us as criminals, presenting charges as if they were proven crimes. Now the SBU has no way back: it must, using various methods, bring the case to court. And the further scenario is simple. The SBU washes its hands, saying it has fulfilled its mission. The case goes to court, which, finding no evidence, will acquit the accused. And then they will disseminate information that Mieshyn bribed the court, while the SBU remained incorruptible. Incidentally, when the criminal case began to collapse, they employed other methods against us. One month ago, a comprehensive audit started on the plant, aiming to reveal any kind of abuse. I do not rule out that there may be some infringements caused by imperfect legislation, but one can hardly imagine any offenses of a criminal nature. In abstract terms, Mieshyn is mainly charged with not willing to share anything with anyone. But one can share something if one steals. If you steal something, you have to share it with someone. I have nothing to share."

"You were Kuchma's aide in the 1994 presidential campaign. Have your relations changed?"

"He gave us protection with regard to the property of the personnel, a 30% share in the plant. Though I am annoyed with his current mistrust toward me personally, not believing that I am not a criminal or thief. In this case the President preferred to isolate himself, giving a free hand to the SBU and futile checks."

"How have the latest events affected the plant's economic activity?"

"The situation is complicated. Because of all these clashes over the MAP our partners do not see stability, any guarantees that the plant administration will be preserved and economic policy of the enterprise will not be changed. They all began to demand prepayment (though previously payments were effected on delivery), and the creditors began to feel uneasy. For the first time in 19 years the plant was cut off from electricity for two days. Our arrears were only one month, but the losses incurred by us totaled Hr 1.5 million. Also, there was a problem related to the timely payment of wages, though we found a way to raise wages from April. One of the negative impacts of all this fuss over the MAP was the dramatic flushing-out of working capital. Nonetheless, we manage to keep a positive balance, we will pay our debts, and I am sure, reach our projected annual output."

"Not long ago they announced strategic partnership between the MAP and Tadzhikistan Alumina Plant, to which 700,000 tons of alumina will be shipped annually, starting in 2000. Do you intend to continue business with your former partners, Russian plants?"

"Of course. Even now we can produce up to 150,000 tons a year. Thus, we plan to maintain our supplies to Russia at the current level of 450,000."

"What is your attitude towards the Sibirsky Aluminy project to combine several Ukrainian plants, including the MAP?"

"It is subtle and cunning. Sibirsky Aluminy wants none of the specified enterprises more than the Mykolayiv Alumina Plant. Neither Zaporizhzhia Alumina Plant nor Pivdenmash, to which they can supply only a dozen railroad cars of alumina. We can do this as well, but they represent it as the only proper form of cooperation. All this is a political game and attempts to get the MAP by another route and at lower cost. It is so transparent, and at the same time wrapped in a nice paper in order to distract one's opinion from the essence of the situation."

"Last December you gave a written undertaking not to leave your place of residence. However, they allow you not only to travel within Ukraine, but to go abroad as well. Did you have a desire to stay there?

"Yes, I have been abroad several times since then. I have been in Turkey to meet with the Tadzhikistan Alumina Plant managers, and also attended negotiations in Vienna and London, where the MAP operation was discussed. Of course, I could have stayed there, if that had been the purpose. But there is no reason to, and, in principle, I would like to keep the plant.