15:07 28.11.2019

Main reasons for firing Energoatom head is inefficient management, Martynenko case – Energy ministry

2 min read
Main reasons for firing Energoatom head is inefficient management, Martynenko case – Energy ministry

The Ministry of Energy and Environment Protection of Ukraine has said that the main reasons for dismissing President of the National Nuclear Generating Company Energoatom Yuriy Nedashkovsky, who took office in 2014, is inefficient management, the Martynenko case, poor management during public procurement and a failure to meet the schedules for repair of reactors of nuclear power plants (NPPs) and the increase in expenses on servicing loans.

According to a posting on the website of the ministry, the extension of the repair period for reactor one of the Khmelnytsky NPP for four months due to staff negligence is given as example, a significant number of malfunctions in the operation of all NPPs in 2018 was recorded (11 in January-October 2019, 22 in 2018, 16 in 2017, 12 in 2016, 15 in 2015, 10 in 2014, 12 in 2013, 15 in 2012, 15 in 2011, 22 in 2010, 21 in 2009, and 22 in 2008), as well as delays in the implementation of the complex program increase security.

Nedashkovsky during his tenure is also reproached for opening a criminal case against former MP Mykola Martynenko, who is accused of embezzlement of funds from Ukrainian state-owned enterprises.

In addition, the Ministry of Energy and Environment Protection believes that, during the procurement, Energoatom entered into agreements with suppliers with negative reputation risks, as a result of which the contractors supplied defective products and did not perform certain services.

The ministry also noted the facts of non-compliance with the schedules for major and ongoing repairs of NPP reactors, which led to underproduction of electricity and an increase in the cost of expenses in this area.

According to the report, Energoatom constantly did not fulfill the financial plans that the Ministry of Energy and Environment Protection associated with an unreasonable increase in costs, especially administrative expenses.

In addition, the ministry drew attention to the increase in expenses of Energoatom for servicing loans and the increase in foreign exchange risks.

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