Economy ministry says Energoatom supervisory board uninvolved in corruption, will present new one within a week
The Ministry of Economy, Environment and Agriculture, in cooperation with partners from the G7 countries, will submit proposals for the government’s approval within a week regarding the new composition of the supervisory board of Joint Stock Company National Nuclear Energy Generating Company (JSC NNEGC) Energoatom, but notes that the existing supervisory board is not involved in corruption, the ministry’s website said in a statement on Wednesday.
"We already have an advisor - an international company that is helping with this process. We are analyzing the lists of candidates, including those who participated in previous competitions," Minister Oleksiy Sobolev said on Facebook, but did not name the advisor.
According to him, the first supervisory board was created for the gradual, balanced development of corporate governance in such a large company as Energoatom, while now there is a completely different task – anti-crisis management, especially after the high-profile investigations by the National Anti-corruption Bureau of Ukraine (NABU).
"The renewal of the board is aimed at strengthening these functions, as well as ensuring the company’s rapid interaction with anti-corruption and audit bodies, international partners and society," the statement said.
The Ministry of Economy also recognized the need to adapt the corporate governance system to new challenges - faster decisions, anti-crisis mechanisms and increased responsibility.
"The new supervisory board will have a clear mandate: to restart the company’s management, conduct a full audit, provide comprehensive assistance to law enforcement agencies in investigating possible corruption," Sobolev said.
He, together with the ministry, also stated that the first supervisory board was not involved in any actions that have become the subject of attention of law enforcement agencies. "We count on their continued professional support during the transition period - in particular, in transferring materials, documentation and analytical work necessary for the rapid launch of the work of the new board," the minister said.
He thanked the members of the first supervisory board for their contribution to creating the basis for the company’s further transformation and noted that it helped form the first processes and framework of modern corporate governance.
According to the release, in parallel, on behalf of the government, the State Audit Service began a comprehensive audit of Energoatom in connection with the facts made public by NABU: the procurement audit should be conducted within 15 working days, the full audit of the company - within 90 working days. The materials will be transferred to law enforcement and anti-corruption agencies. The report will be submitted to the government after the auditors complete their work
"Rapid decision-making in the situation with Energoatom is important not only for internal stability, but also for Ukraine to fulfill its obligations to the IMF, the World Bank and the EU. This demonstrates the state’s readiness to act in accordance with international standards and protect partners’ investments even in difficult conditions," the Ministry of Economy emphasized.
As reported, Prime Minister Yulia Svyrydenko announced the government’s decision to prematurely terminate the powers of the Energoatom Supervisory Board and urgently elect a new composition.
"The task of the new composition is to quickly restart the management, conduct a full audit of the company and provide comprehensive assistance to law enforcement agencies in investigating possible corruption," Svyrydenko emphasized.
At the same time, experts called the government’s decision to prematurely dissolve the Supervisory Board insufficient and an attempt to shift responsibility.
"Are you normal in that government at all? It seems that you are confusing the Supervisory Board and the "watchers." The former do not decide anything, and if they do, then you scream about the "loss of sovereignty," wrote Oleksandr Paraschiy, head of the analytical department of the investment company Concorde Capital, under the post of the Deputy Prime Minister for European Integration.
"The current crisis cannot be solved by management decisions regarding the Supervisory Board. It was the people in the tapes who sabotaged the efforts of international partners to create an effective body for more than a year. "While they are in office, there will be no work," Business Ombudsman Roman Waschuk, who supported calls for the dismissal of ministers involved in the Midas case, said.
In addition, the dissolution of the Supervisory Board, according to a number of experts, calls into question the possibility of changes in the management board before the election of a new Supervisory Board, since, according to the Energoatom charter, these are the exclusive powers of the Supervisory Board.
As reported, on June 21, 2024, the Cabinet of Ministers approved Timothy John Stone, Michael E. Kirst, and Jarek Niewierowicz as independent members of the Energoatom Supervisory Board, and representatives of the state - President of the Kyiv School of Economics and former Minister of Economy Tymofiy Mylovanov and State Secretary of the Ministry of Economy Vitaliy Petruk, but the first meeting of the Council took place only in mid-January 2025. At it, former Minister of Energy of Lithuania Niewierowicz was elected Chairman of the Council, and Deputy Chairman – Kirst, who held senior positions at Westinghouse Electric Company throughout his career.
In August of this year, the Cabinet of Ministers amended the charter of Energoatom, increasing the number of members of the supervisory board from five to seven. The company’s supervisory board now has four members because Stone refused to sign the contract. But on November 11, Mylovanov announced his resignation from the supervisory board. The government had planned to complete the formation of the supervisory boards of energy companies by the end of this year.
