REUTERS
The Prosecutor General's Office urges the court to recognize as illegal the privatization of PJSC Dniproenergo, PJSC Zakarpattiaoblenergo and PJSC Donbasenergo.
"Fulfilling a constitutional function to represent citizens and the state in court, the Prosecutor General's Office of Ukraine as an independent plaintiff addressed the court on April 3, 2015, asking to revoke the sale of state-owned shares of OJSC Dniproenergo and PJSC Zakarpattiaoblenergo," the press service of the Prosecutor General's Office told UNIAN.
The Prosecutor General's Office also informed that the court was considering a claim by prosecutors who demand recognition as unlawful and repeal of the acts of the Cabinet of Ministers of Ukraine and the State Property Fund (SPF) of Ukraine enabling the privatization of a state stake in OJSC Donbasenergo.
It is claimed that the privatization conditions specified in the contested Cabinet and SPF acts passed with abuse of power and in violation of Article 19 of the Constitution and state property privatization and management laws of Ukraine were formulated to artificially create conditions for the acquisition of particular state-owned shares by pre-defined enterprises, having thus greatly narrowed a range of potential buyers.
The actual absence of bidding and lack of competition in setting bids translated into violations of the state privatization program, which outlines a key principle of privatization – the maximum economic benefit from the sale of a facility.
Due to lack of competition, a state stake in OJSC Dniproenergo was sold at a price that is a mere 0.48% higher than the offering price, and PJSC Zakarpattiaoblenergo's sale price was a mere 4.2% up from the starting price.
In total, the corporate rights worth more than UAH 2 billion were sold, whereas a state 25% stake in Zakarpattiaoblenergo has recently been sold at a price that is 3.9 times higher than the offering price.
"Proving in court that these companies' state shares were sold unlawfully will enable their new privatization under transparent conditions and ensure significant revenues, including through the possible participation of foreign investors in the tender," the Prosecutor General's Office said.