Controversy Surrounds Privatization of "Volintorf" State Enterprise
Date: 2023-11-17 Author: Dima Zakharov Categories: ECONOMY
The State Property Fund of Ukraine has declared the legitimacy of the privatization of the "Volintorf" state enterprise, transferring it to auction based on lawful grounds. The starting price was set at the asset's book value. During the auction, the enterprise was included in the list of small privatization objects. The government's resolution to halt the privatization and transfer it to the Ministry of Energy was not adopted, and no other legal grounds for canceling the auction existed.
The Fund emphasizes that the auction announcement was timely published in the Prozorro electronic system, providing equal access to information for all potential investors. According to current legislation, the starting price for small privatization objects is determined at the asset's book value, and the price increases during the auction based on proposals.
The auction proceeded with a single participant, and the winning bid was considered the one proposed by this participant. The starting price for this auction was equal to the object's book value, amounting to UAH 190.19 million, while the winning price reached UAH 212.22 million.
It is noted that the enterprise's net profit for the first half of 2023 was only UAH 6.2 million, and the previous year's profit was UAH 10.6 million, with losses in 2020 and 2021.
The State Property Fund emphasizes its readiness to cooperate with law enforcement agencies and facilitate any investigations related to the privatization process.
The Fund emphasizes that the auction announcement was timely published in the Prozorro electronic system, providing equal access to information for all potential investors. According to current legislation, the starting price for small privatization objects is determined at the asset's book value, and the price increases during the auction based on proposals.
The auction proceeded with a single participant, and the winning bid was considered the one proposed by this participant. The starting price for this auction was equal to the object's book value, amounting to UAH 190.19 million, while the winning price reached UAH 212.22 million.
It is noted that the enterprise's net profit for the first half of 2023 was only UAH 6.2 million, and the previous year's profit was UAH 10.6 million, with losses in 2020 and 2021.
The State Property Fund emphasizes its readiness to cooperate with law enforcement agencies and facilitate any investigations related to the privatization process.
