10:36 09.12.2014

Chief prosecutor unveils kickback schemes in coal purchases from RSA

2 min read
Chief prosecutor unveils kickback schemes in coal purchases from RSA

The quality of the coal supplied from the Republic of South Africa (RSA) to Ukrainian thermal power plant doesn't meet the declared standards, however, the shipments of the coal haven't been blocked and it could be used by power plants.

"Today they can accuse us of a sabotage attack on the energy sector today or of whatever, but we're doing our job… According to experts' conclusions and laboratory examination we've managed to conduct as of today, the coal supplied from the RSA can burn only if it is mixed with our Luhansk-produced anthracite at a ratio of 30:70 or flashed with either gas or boiler oil. Thus, the quality of the coal doesn't correspond to that declared in the contract," Prosecutor General Vitaliy Yarema said at a press conference in Kyiv on Monday.

"Five million [hryvnias] per month is the so-called kickback via bogus firms. This is the scheme which is used by most of our state-run enterprises and institutions, unfortunately. Nowadays such structures are the objects of law-enforcement investigations," he said.

Investigators haven't arrested those coal shipments, and the coal can be used, he added.

What is more, spare parts to the thermal power plants were supplied by a firm whose core business is legal services. "This signals that this is a bogus company. Checks have revealed that such firm doesn't exist, and its business has nothing to do with any spare parts or components for power plants," he said.

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