The State Property Fund fired Peter Davis from the post of acting Chairman of the Board of the UMCC

JSC United Mining and Chemical Company is managed by the State Property Fund of Ukraine. After receiving the facts about the violation of employment contract’s terms by acting Chairman of the Board of the UMCCPeter Davis and numerous appeals from MPs of Ukraine, Security Service of Ukraine and members of the Board of the UMCC regarding the possible detrimental to the property interests of the state, the State Property Fund has issued Order to dismiss Peter Davis.

On September 2020, Peter Davis single-handedly decided to resume the sale of Vilnohirsk Mining and Metallurgical Complex products (it is a part of the UMCC structure) to the companies controlled by previous management of the UMCC that was removed due to ineffective management and corruption earlier this year. At the same time, Peter Davis ordered to stop shipment of products to the companies are conscientious and experienced market players working on a prepaid basis at higher prices, up to unloading of already loaded containers. These market players provide monthly UMCC product purchase worth several million dollars USD.

Members of the Board of the UMCC were against this decision of Peter Davis regarding the product sales to companies controlled by the UMCC former management, but their arguments were not accepted. Contractors buying UMCC products through conscientious market players asked Peter Davis resume deliveries immediately to avoid stopping factories in Europe and Turkey. There was no reaction.

In Vilnohirsk MCC despite the approved staff list, the management included persons from the previous management. At the same time, the Deputy Director for Sales of Finished Products of UMMC, was appointed by the new Board of the UMCC, was actually removed from the sales process, in addition, pressure was exerted on the sales manager for attempting to obstruct the unloading of containers intended for companies that are in good faith in the market

Over the past two weeks, Peter Davis personally agreed on more than ten contracts and amendments to agreements with companies controlled by the UMCC ex-management. In addition, over the past ten days, he has signed a number of shipping orders in favor of similar companies.

Peter Davis actually blocked the activities of the UMCC Board, stealing the company’s seal, resorting to sole actions and led to the washing out of financial resources from the UMCC. One of the latest orders from Peter Davis was an instruction to sell 1 million US dollars, which were reserved in the accounts of UMCC for payment of wages, with a subsequent order to make payments in favor of companies affiliated with the former management of UMCC.

Taking into account the situation that has developed at the UMCC, the State Property Fund of Ukraine decided to relieve Peter Davis from his post. Law enforcement agencies in cooperation with the State Property Fund will be engaged in clarifying all the circumstances of Peter Davis’s activities.

“We made an urgent decision to dismiss Peter Davis from his post. The situation that has developed in recent weeks at the UMCC created risks for the titanium industry in Ukraine and called into question the possibility of privatizing the UMCC, which was the reason for the appropriate decision of the SPFU. Together with law enforcement officers, we will find out all the circumstances of Peter Davis’s activities over the past weeks, which were accompanied by corruption schemes. At the same time, the SPFU will carry out a set of measures aimed at maintaining the operational efficiency of the UMCC’s activities and leveling the threats of disruption of preparations for privatization”, noted the Deputy Head of the State Property Fund of Ukraine Denys Kudin.

Despite all attempts to thwart the privatization of JSC UMCC, the State Property Fund of Ukraine will ensure the preparation of this enterprise to attract a competent investor through a transparent privatization auction. But for this, it is necessary to lift the legislative ban on holding auctions with large privatization as soon as possible.