Financial inspectors reveal infringements worth $55.2 mln in 2013-2014 at State Food-Grain Corporation
The State Financial Inspection of Ukraine during the off-schedule audit of public joint-stock company State Food-Grain Corporation revealed millions-worth losses caused to the corporation in the period from January 1, 2013 to December 31, 2014.
According to a Tuesday report of the Agricultural Policy and Food Ministry of Ukraine, inspectors established infringements of financial discipline that caused losses of UAH 452.6 million or $55.2 million.
"In 2013, the corporation paid UAH 370.9 million to China's Sonders trading K/S Co., Limited under an imports contract. However, the documents, which could confirm purchase of goods without being import ed to the territory of Ukraine, are absent," the ministry said.
In addition, the corporation did not receive UAH 81.7 million in foreign currency for the goods exported to the above-mentioned Chinese company. The corporation carried out the set-off without confirming the debt under the contracts worth UAH 608 million.
In August 2014, the corporation bought and sold 22,200 tonnes of third- class barley via the re-registration of warehouse receipts. Thanks to the fake transaction the corporation received a debt of UAH 52.6 million to TIS-Grain LLC.
In August 2010, the government decided to create the State Food and Grain Corporation of Ukraine. The corporation has a chain of branches, comprised of grain storage facilities, flourmills, fodder factories and a cereals factory. The 53 subdivisions of the corporation can store a total of 3.75 million tonnes of grain, which includes the grain handling capacities of Odesa and Mykolaiv ports of around 2.5 million tonnes of grain cargo per year.
The State Food and Grain Corporation of Ukraine in late 2012 received the first tranche of $1.5 billion from the Export-Import Bank of China. The funds were to be allocated to carry out spot and forward purchases of four million tonnes of grain which would be shipped to China.
China National Machinery Industry Complete Engineering Corporation (CMCEC) is the operator under the contract, which was signed for a period of 15 years.
The corporation plans to export 3.5 million tonnes of grain by late 2015 under the Chinese contract.
