Economy

Prosecutor general speaks about claims against Motor Sich

Ukrainian Prosecutor General Yuriy Lutsenko has informed about the claims against public joint-stock company Motor Sich (Zaporizhia).

"There are several criminal cases against Motor Sich. One of them is being investigated by the Security Service of Ukraine (SBU). It is related to the fact that most of the shares that were earlier sold to offshore companies were sold not in line with the legislation," he said at a press conference in Dnipro last week.

He said that the enterprises of the Ukrainian defense sector, and Motor Sich is among them, are to approve the sale of their shares with relevant public institutions. [Government] investigators believe this was not done, according to the PGO chief.

Lutsenko also said that the main investigation department of the Prosecutor General's Office (PGO) is investigating into a fact of possible embezzlement of public funds when the enterprise was working on the state defense order.

"This concerns the likelihood of setting too high prices of engines and further withdrawal of the funds via dummy companies, including using so-called junk shares," he said.

Lutsenko said that raids and inspections will be conducted during one month and then the PGO would be able to notify suspects about the charges.

"Now top managers of Motor Sich enterprise are defenders in the case… No one announced suspects and guilty persons. We are to analyze the documents. Who signed them and who permitted to sign them," he said.

The prosecutor general said that Ukraine's Antimonopoly Committee did not permit the buyer of a controlling stake in Motor Sich to buy the stake.

"This buyer is a citizen of another state. The committee explains its decision by the non-conformity with competition on the market," he said.

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