State Food-Grain Corporation pays $200,000 fine for botched $1.5 bln Chinese credit
Public joint-stock company State Food-Grain Corporation has paid $200,000 of fine for a failure to use the commodity part of the $1.5 billion Chinese credit, Head of the State Financial Inspectorate Lidia Havrylova said at a government meeting on Friday.
She said that the corporation sees losses due to inefficient use of own and borrowed government-secured funds.
"$500 million [of the Chinese credit] have been used and $1 billion are kept on deposit accounts of Ukreximbank. The rest of $1.5 billion are reserved by the Chinese government. They are not used, as there is no need in these funds. The corporation paid $200,000 only for reserving the funds," she said.
Havrylova said that financial offences for UAH 163 million have been revealed during a financial audit of the corporation for the period from April 2014 to June 2015. Transactions that affected the company's figures are estimated at UAH 950 million.
Over the audited period the corporation bought grain worth UAH 78 million at very high prices. Shortfall of revenue from grain transactions is assessed at UAH 18 million and undersupply of assets – at UAH 80 million.
"The corporation paid UA 321 million for grain and flour to six companies that are not found at the place of their registration," Havrylova added.
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 some 2.5 million tonnes of grain cargo per year.