Law enforcement officials in cooperation with the new management of JSC “UMCC” prevented the infliction of UAH 52 million of losses on the state company.

NABU and SAP in cooperation with the new management of JSC “United Mining and Chemical Company” (100% of the shares belong to the state) prevented the infliction of UAH 52 million  of losses, not allowing free export of UMCC's raw materials abroad. It is about 1845 tons of rutile concentrate, which is currently in the Odessa Seaport.

The decision to transfer raw materials free of charge to a foreign intermediary company (Austria), which already has about UAH 600 million in debt to “UMCC”, was made by the former management of the state-owned company. Upon learning of this fact, as well as illegally transferred rutile is stored in the Odesa Sea Trade Port, the new management of the state company turned to the National Anti-Corruption Bureau of Ukraine.

In turn, NABU and SAP initiated the seizure of raw materials as part of a pre-trial investigation into possible abuses at the state-owned company, which could have caused it more than UAH 1 billion in losses. The relevant request was granted by the investigating judge of the High Anti-Corruption Courton July 15, 2020 and has been complied now. Such measures made it impossible to sell 1,845 tons of rutile transferred illegally to a foreign company for the final buyers, and at the same time set a loss of UAH 52 million for “UMCC”.

“Our position on the illegal activities of the company's former management and cooperation with unscrupulous counterparties is simple - let the law enforcement officials investigate. For its part, the new management is doing everything possible to eliminate cash gaps in the company and further contracts conclusion with proven consumers only” - said Peter Davis, Acting Head of the Management at JSC “UMCC”.

This is the second successful example of cooperation between the new management of “UMCC” and law enforcement agencies. In May, the result of such interaction was actions that made it impossible to export free of charge ilmenite concentrate for UAH 80 million.

The abuses of the former management at the “UMCC” have been in focus of NABU and SAP detectives since the beginning of the National Bureau's work. Since 2016, anti-corruption authorities have been conducting pre-trial investigations into abuses by “UMCC” officials in the export of titanium raw materials through related foreign intermediaries. In 2018, the indictment on the officials accusation of the company was sent to court.

* All information on the “UMCC” activities will be temporarily published on the official website of the State Property Fund of Ukraine, as access to the company's website and the official Facebook page of the “UMCC” has been blocked by the former management.