11 December 2015, 11:13
In the opening address of the hearing held on December 9 on the topic "Abiding by the legislation of Ukraine concerning the use of state budget funds and loan funds under the government guarantees to solve tasks and carry out activities envisaged by the State target program for f the preparation and holding in Ukraine of UEFA Euro 2012 Finals and the ways of ensuring effective functioning of facilities built or reconstructed during the holding in Ukraine of UEFA Euro 2012 Finals," Chairperson of the Committee Artur Palatnyi emphasized that the issue of the Euro 2012 has not been properly addressed during the last three years.
Chairperson of the Committee said: "It seems that all is well, Euro 2012 was successfully held, all facilities were built and tested. Yes, there are debts to foreign investors, but as they hoped that day, at the expense of successful functioning of the constructed facilities the country would have paid off debt liabilities in time.
However, after analyzing the materials submitted for the hearing, the situation after holding the Euro 2012, to put it mildly, appeared to be not so optimistic. Almost all facilities remain not completed, in particular, the multi-level building of the reception area at the national sports complex "Olympiiskyi" frankly frightens. The construction was stopped, the building is in critical condition, and in any moment can lead to unpredictable consequences. This is despite the fact that more than UAH 330 million of budget funds was invested into the building."
Artur Palatnyi mentioned one more problem - debt liabilities. The State did not fully pay off its debts to state-owned enterprises for works performed on facilities, and state-owned enterprises in turn failed to paid to subcontractors, and as a result they pay penalties, court and enforcement fees.
First Deputy Chairperson of the Committee Mykola Velychkovych said that the volume of funds spent from the state budget for the clearance of debt liabilities on loans under the government guarantees for holding the Euro 2012, is quite big. This year it is about UAH 3.5 billion. And it's only payment of interests. Mykola Velychkovych said that this amount would be enough to completely solve problems of Ukrainian sports, spa treatment, recreation and rehabilitation of children, to allocate necessary funds for provision of youth housing loans as well as to support the tourism industry.
Mykola Velychkovych also noted that the volume of foreign debt is USD 1.808 billion, at the same time the debts of a number of state-owned enterprises to the state enterprise Fininpro and the state budget is estimated by the Committee at UAH 8.7 billion. There is not a mechanism for repayment of this debt. However, even if the hryvnia debt had been repaid, then given the current dollar rate it would not have covered the amount of foreign-currency debt. However, according to the available materials, not a single state enterprise has real ability to return these debts.
"Despite the large sums allocated for holding of Euro 2012 from the state and local budgets, foreign borrowings, construction of a part of facilities for Euro 2012 was under-financed, moreover, they did not pay for the rendered services. As a result all state enterprises have large debts to subcontractors, and they collect the debts from them at court. Thus, the state bears additional costs for payment of court and enforcement fees, penalties, etc. This is also a consequence of lack of proper attention to this issue," Mykola Velychkovych said.
In the discussion participated also people's deputies of Ukraine, representatives of central and local executive authorities and local self-government bodies, law enforcement agencies, heads of state enterprises, which were building or maintaining facilities of Euro 2012. In particular, they pointed to some problems with uncompleted facilities of Euro 2012, threatening with their destruction and dangerous for people's security.
During the discussion, the participants made a number of remarks and offers to the Cabinet of Ministers, which found its reflection in the draft Recommendations of the Committee hearing, namely:
The Cabinet of Ministers was proposed in particular to consider at its meeting in February 2016 the issue of the effective use of facilities built or reconstructed during holding of UEFA Euro 2012 Finals in Ukraine.
Also, the government was recommended to instruct the Ministry of Infrastructure together with the Ministry of Youth and Sports and the Ministry of Finance by March 1, 2016:
To develop a mechanism for repayment of debts of the following state enterprises: "National sports complex "Olympiiskyi," "Arena Lviv", "Palace of Sports," "Directorate for building of facilities for Euro 2012 in the city of Lviv", "Directorate for capital construction and reconstruction of the International airport "Donetsk," "Ice Arena," "Center of Communications Ukraine - Vsesvit" to the state enterprise "Financing of Infrastructure Projects;"
To develop and submit to the Cabinet of Ministers of Ukraine a plan of measures for repayment of accounts payable of state enterprises and state institutions to subcontractors for performed works and services during the preparation and holding of UEFA Euro 2012 Finals in Ukraine;
To develop and submit to the Cabinet of Ministers of Ukraine a plan of measures for commissioning of constructed (reconstructed) facilities during the preparation and holding of UEFA Euro 2012 Finals in Ukraine, including to compile a list of facilities, construction of which should be completed in 2016 due to the threat of destruction, or emergency conditions.
Also the Cabinet of Ministers of Ukraine was proposed to order the Ministry of Internal Affairs of Ukraine to conduct additional check of violations of the legislation during the preparation and holding of UEFA Euro 2012 Finals in Ukraine.
The Prosecutor General's Office was offered to create a working group from representatives of the Ministry of Internal Affairs of Ukraine, the Security Service of Ukraine, the State Fiscal Service of Ukraine, the State Financial Inspectorate of Ukraine and other state agencies to coordinate actions regarding criminal proceedings in respect of violations of the legislation during the preparation and holding of UEFA Euro 2012 Finals in Ukraine.