Naftogaz suspends Ukrtransgaz president

Naftogaz of Ukraine has suspended Mr. Ihor Prokopiv, the president of Ukrtransgaz

Naftogaz of Ukraine has suspended Mr. Ihor Prokopiv, the president of Ukrtransgaz. The decision was adopted by the Executive Board with an approval by the Supervisory Board. The suspension procedure is stipulated in the charter of Naftogaz, as adopted by the Cabinet of Ministers of Ukraine in December 2016.

Based on the Ukrtransgaz charter, Mr. Myroslav Khymko, first vice-president of Ukrtransgaz, will assume management of Ukrtransgaz. Naftogaz and Ukrtransgaz stress that the transition in management will have no impact on the Ukraine’s gas supplies to customers and that gas transit will continue in full accordance with contractual obligations.

When auditing Ukrtransgaz accounts for 2015, the group’s independent auditor Deloitte & Touche could not find sufficient audit evidence for a number of purchases. The external auditor continued the audit while a newly created internal audit body of Naftogaz, which is accountable to the audit committee of the Supervisory Board, held a relevant investigation.

The follow up investigations have confirmed the initial findings and resulted in a more detailed confirmation of mismanagement in the procurement of services. The current findings have prompted further parallel investigations on a broader front.

As part of Naftogaz’ transformative corporate governance reform, the company is implementing a new internal controls system across all group companies. Similar internal audit reviews are now being launched in all subsidiaries to ensure compliance with relevant policies and legislation.

Corporate Communications Department
NJSC Naftogaz of Ukraine

Other news