22 June 2010, 10:56
For the reporting period, the Fund has worked within the legislative framework that fails to conform to the current economic situation.
The Committee members stated that the President´s Decrees issued in 2008 that actually blocked the privatization processes (of 06.03.2008 No 200 "On the Resolution of the National Security and Defence Council", of 15.02.2008 "On Guarantees of National Interests and National Security in Privatization, and Conceptual Principles of their Implementation", and others), were in force in 2009.
Pursuant to the Law "On the State Budget of Ukraine for 2009", the target of revenue from the state property privatization made up UAH 8 billion 501 million 224 thousand, while only 9,6 per cent (UAH 814,89 million) was received.
The revenue from the sale of land plots located on the site of the objects of privatization, and privatization of off-plan property has grown in comparison with the previous year: UAH 7,16 million (UAH 1 million 080 thousand in 2008) and UAH 17,14 million (UAH 8,03 million in 2008) respectively.
The panel members believe that organizational work of the Fund concerning provision and holding of state property privatization was inefficient.
Out of 37 blocks of stocks of the open joint stock companies offered for sale at competitive tenders, 7 blocks were sold. 18 blocks of stocks failed to be sold, as there was no demand. Thus, effectiveness of work of the Fund concerning sale of blocks of stocks of the open joint stock companies totaled 50 %.
Sale of blocks of stocks of the open joint stock companies at the stock exchanges also yielded low results. Thus, only 34 blocks out of 137 offered for sale were sold.
In comparison with 2008, the number of economic entities on some stage of bankruptcy proceedings increased by 45 units. For the reporting period, the number of loss-making enterprises totaled 62 units, the sum of the losses amounting to UAH 146,9 million.
Formalistic participation of the Fund in the restructuring of the enterprises resulted in the long-lasting proceedings and non-improvement of the financial conditions of the companies.
The panel members stressed that compilation of the Uniform State Property Objects Register failed to be supported in terms of organization. The Fund is not fully informed about the property administered by 11 Ministries and departments and Sevastopol city state administration.
The Fund was said to be limited by mere affirmation of the general number of lease agreements, without publication of the effectiveness rates as to different types of lease objects and corresponding surveys.
The panel members stated that the situation with human resources in the Fund was also unsatisfactory.
The Panel resolved to acknowledge that the activity of the State Property Fund of Ukraine and implementation of the State Privatization Program in 2009 were unsatisfactory.
The Cabinet of Ministers is recommended to draft and bring forward the bill "On the State Privatization Program for 2011-2013", new versions of the laws "On the State Property Privatization", "On Privatization of Small State-Owned Enterprises (Small Privatization)", the bills on amendments to the laws "On Specificity of Property Privatization in the Agricultural Sector", "On Specificity of Off-Plan Property Privatization", etc.
The State Property Fund of Ukraine is recommended to guarantee achievement of performance targets on the state budget revenue in conformity to the law "On the State Budget of Ukraine for 2010."