State-Owned Enterprises Owe 230 Million: How Executives Live in Luxury.

According to ТСН: The well-known enterprise 'Pivdenmash' has found itself in a difficult financial situation due to huge debts, but the management seems not to take it seriously. State companies such as 'Ukrnafta', 'Pivdenmash', and Kremenchuk TPP owe private firms 230 million UAH for electricity and gas.

The state is harming its own economy by allowing the bankruptcy of enterprises, while their management continues to live in luxury.

The State and Debts

'Ukrnafta', Kremenchuk TPP, and 'Pivdenmash' are known to everyone, but only a few know what unites them — it is debt. Together, they owe LLC 'New Energy Ukraine' 230 million UAH.

These funds were owed by the enterprises for gas and electricity. However, interestingly, the law allows them to avoid repaying this amount.

How They Avoid Payments

The laws that allow avoiding payment obligations have become a subject of discussion in connection with the corruption scheme called 'Midas', uncovered by NABU:

'The main direction of the criminal organization's activities was the systematic receipt of unlawful benefits from the contractors of 'Energoatom'...'

This scheme is known as 'barrier', whereby companies must pay to get their own money back.

'Because state enterprises do not pay off debts, this encourages corruption in relations between the state and the private sector,' explains acting director of LLC 'New Energy Ukraine' Igor Kvasha.

He also added that their company supplies electricity and gas to all enterprises in Ukraine, and 'the state sector owes them 230 million UAH.'

'We have gone through courts of all instances... but the state has ensured that such enterprises do not pay off their debts at all.'

The reasons for the non-payment of debts lie in the orders of the Ministry of Strategic Industries of Ukraine, which effectively legalize the debt.

'I order to include the state enterprise 'Production Association Pivdenny Machine-Building Plant O.M. Makara' in the list of enterprises that are debtors...'

Interestingly, 'Ukrnafta' publicly reports its net profit of 16 billion UAH for 2024, but debt payments are not made.

'It turns out that the specified enterprises, at 'Ukrnafta', have profits... and thereby create an energy collapse,' notes Igor Kvasha.

Living in Luxury

The management of 'Pivdenmash' lives in luxury, despite the debts. For example, deputy CEO Sergey Karpenko 'forgot' to declare over 100 million UAH.

'The former deputy head of the Dnipropetrovsk Regional State Administration... 'mistaken' in the declaration for an amount of 130 million UAH...'

Additionally, the first deputy CEO of 'Pivdenmash', Konstantin Zavhorodny, managed to buy a 2020 Land Cruiser for one UAH, although its market value exceeds 60 thousand dollars.

Zavhorodny's wife also purchased a BMW X6 M during the war, costing over 100 thousand dollars.

Sergey Voit

General Director of 'Pivdenmash' Sergey Voit, who has been in his position for 11 years, demonstrates an absurd situation: his annual salary is 5 million UAH, while he declares an old house and apartment that he does not actually own.

Instead, he lives in an elite house, as evidenced by his neighbor, but this is not mentioned in the declarations.

Elite Living and Connections

Voit denies that he lives in an elite area:

'Yes, I rent it...'

However, the market price of renting such a house cannot be as cheap as he claims.

Additionally, the connections of Voit's family with a company related to 'Pivdenmash' raise questions about the ethics and transparency of the enterprise's operations.

These debts could threaten the financial stability of the companies and business as a whole, making the issue of urgent auditing important to prevent further destruction of the economy.