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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Black Gold to Clean Hands?

13 November, 2012 - 00:00

Miners do not believe the state can free them from parasites.

They loved to point to the Pravda Mine as a showcase example of the civilized closing of a coal enterprise. This particular mine along with two others became the object of a World Bank pilot project two years ago. Again recently Pravda attracted general attention, but this time due to a different reason: a local audit and revision department detected a number of violations in using budget funds and charges were officially made in the case.

Oblast prosecutor Viktor Pshonka declines comment on the situation, since the case remains open. But other sources report, that an excessive amount of state money (about a million hryvnias) went to satisfy the needs of the newly appointed administration. According to the prosecutor, the money went through dozens of companies, many of which do not exist today, making it very difficult to check them all out. Meanwhile, charges were brought up against a number of state officials. Other enterprises, which are to be closed are also undergoing audits. Misuse of state money has also been detected at the Mushketiv Mine in Donetsk.

Not only these enterprises have shown a penchant for misappropriating state money. The Selydovvuhillia (Selydove Coal) state holding company, which is considered one of the most solid in the region, recently attracted the attention of the supervisory organs. Last year the company received Hr 100 million – 10% of the state aid granted the entire coal sector. Nonetheless, its work index continued to slide. Thus far three fake companies have been found, to which the holding company supplied fuel. To prevent the question how the company managed to attract such a huge sum of money, we should mention that the former Minister of the Coal Industry Stanislav Yanko began his career there.

In Dobropillia, a nearby area, tax police found some "black holes" which were sucking in coal along with taxes and money. A month ago the Dobropilliavuhillya state holding company and West Company of Donetsk signed a contract on supplying the mine equipment totaling Hr 1 million. West was supposed to supply coal equaling that sum. Everything seemed legal enough, especially if you did not know that the West Co. was liquidated two years ago.

The state Dobropilliavuhilliakomplekt open stock company chose similar partners, trading coal and mining equipment with eight "horns and hooves" companies. For example, the company supplied coal worth Hr 830,000 to the Donetsk Magma enterprise, the legal registration of which was canceled last year. Tax officers managed to stop the next scheduled coal shipment worth Hr 210,000, but the state is hardly likely to receive the compensation of the losses already incurred. They also detected a number of companies which received coal from Dobropillia, but were not registered with the tax service.

It is interesting that Dobropillia miners were among those actively demanding their wages in Kyiv.

You may have the impression that consumers' debt is profitable for mines' management to some extent. Or otherwise, how can you explain actions of the Shakhterska-Hlyboka (Deep Mine) management, which does not file a claim in civil court, although consumers owe it Hr 5.3 million. According to the prosecutor's office, the Novodzerzhinsk Mine supplied one private company with fuel totaling Hr 182,000 last year. Though the company did not pay all the money, the mine generously sent them more coal, this time totaling Hr 200,000.

Meanwhile, Donetsk still remembers that two years ago on the order of Vasyl Durdynets, then the First Deputy Prime Minister of Ukraine, all mines and enterprises were checked within two weeks and charges were brought up in 300 cases. If only a half of them had been thoroughly investigated. But this never happened. This is why the region considers this Black Gold to Clean Hands Campaign just another order from above.

Photo by Viktor Marushchenko, The Day:

Donbas miners calmed down and expect their June salary. Meanwhile, according to the Independent Trade Union of Donbas Miners, money comes in short amounts to the coal enterprises' bank accounts. However coal generals keep saying that the whole sum will be transferred by the end of the week and salaries will be paid out.

 

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