10:47 24.10.2016

Ukrzaliznytsia's supervisory board to consist of only independent specialists - PM

3 min read
Ukrzaliznytsia's supervisory board to consist of only independent specialists - PM

Officials in the supervisory board of public joint-stock company Ukrzaliznytsia are to be removed and the board should only consist of independent specialists, Ukrainian Prime Minister Volodymyr Groysman has said.

"Today our task is to make the Ukrzaliznytsia's supervisory board public and independent. There are officials there now. Independent specialists must be there," he said in parliament last week answering a question of MP Yuriy Solovey (Petro Poroshenko Bloc).

The latter addressed Ukrainian Infrastructure Minister Volodymyr Omelyan, who leveled some criticisms at Ukrzaliznytsia Head Wojciech Balczun.

"I have an appeal concerning the Ukrzaliznytsia head. I sent 10 requests asking to meet the lawmaker. After two months I was granted 15 minutes to meet with the extremely important head of Ukrzaliznytsia. I prepared appeals on other issues. Balczun disrupts construction of roads, especially in western Ukraine, via non-supply of wagons. Some 1,000 wagons for construction of the R-24 road, but only 115 were delivered. The situation is the same all over Ukraine," Solovey said.

Omelyan said that last week a meeting with exporters, producers and shipping agents that use Ukrzaliznytsia's services was held. An action plan to settle the situation was drawn up. The minister expressed hope that by the end of October the situation would stabilize and urgent measures to repair electric locomotives, diesel locomotives and wagons would be taken.

As for the lawmaker's requests and the meeting with the Ukrzaliznytsia head, Omelyan made an apology and promised to hold the meeting in his presence.

Groysman added that it would be unfair to rest responsibility on the head of Ukrzaliznytsia for what is going on in the company. He has been working in the company since May 2016.

"Ukrzaliznytsia was permanently pushing into losses. Unfortunately, the funds that were to be sent to modernization and used efficiently were spent God knows on what things. The good enterprise billionaire is now in the poor state," Groysman said.

He added that the policy of the Ukrzaliznytsia's manager today is to bring the company out of crisis.

"He does not give wagons because neither modernization and repair, nor purchase of new wagons was made systemically for years. He does not have a traction fleet only because it was not repaired and new was not bought. He also faces a serious challenge of the old system that corrupted Ukrzaliznytsia procurements, tenders and in other activities," the prime minister said.

He also asked Solovey to invite the Ukrzaliznytsia head to a meeting of the profile parliamentary committee. He said that he will personally ask Balczun to show schedules, procedures and existing wagon supply contracts.

"I think that you will see many new things," Groysman said.

He said that the task of Ukrzaliznytsia is to reach good positions for cargo and passenger transportation in a year.

"They are doing this today: they place orders for modernization of wagons and improve management. However, the old system creates resistance. It must be broken. The serious and powerful national enterprise Ukrzaliznytsia will become profitable and will invest funds in the economy, rolling stock and quality of work. The new head needs support here," Groysman said.

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