Ukrainian Agency's Morshynska Tender: A Scheme to Divert 400 Million Hryvnias in Profits

Tender for Corporate Rights Management of PJSC 'Morshynska'

According to ХВИЛЯ: The Asset Tracing and Management Agency (ARMA) announced a tender in late November, under old rules, for managing the corporate rights of PJSC 'Morshynska'. The primary objective of this tender appears to have been the misappropriation of approximately 400 million hryvnias in the company's undistributed profit. ARMA is a state body responsible for managing seized or recovered assets, often from criminal proceedings. It is notable that since 2022, over 1 billion hryvnias in net, undistributed profit has accumulated in 'Morshynska's' accounts.

Intervention by Regulatory Bodies

The Agency set the maximum income for the prospective manager at 30 percent. Andrii Potiomkin, an expert in the field, stated:

“Since 2022, over 1 billion hryvnias in net, undistributed profit has accumulated in the accounts of the 'Morshynska' company”. - Andrii Potiomkin

According to him, had the Antimonopoly Committee of Ukraine not intervened, the company's lawyer would have 'called a general meeting on the very first day, distributed the undistributed profit of the last three years, sent 70% of this profit to the state budget, and put 30% of this profit in his own pocket'.

Critically, the intervention of the Antimonopoly Committee and the National Anti-Corruption Bureau of Ukraine (NABU) halted a process that could have led to significant financial abuse. Potiomkin emphasized:

“I calculated it at almost 400 million hryvnias. It was a great plan. It's very good that the Antimonopoly Committee intervened. NABU intervened and shut down this whole scheme”. - Andrii Potiomkin

Thus, the situation surrounding the tender for managing the corporate rights of PJSC 'Morshynska' has drawn serious attention from regulatory bodies, highlighting the importance of transparency and oversight in corporate asset management.

This case underscores the ongoing challenges of corporate governance in Ukraine, where oversight mechanisms are still being strengthened. The event stresses the relevance of controlling corporate finances, especially under conditions of insufficient transparency in enterprise management. The intervention of state bodies like the Antimonopoly Committee and NABU can be decisive in preventing corrupt schemes that threaten not only company interests but also the state budget. The tender for managing 'Morshynska's' assets may become a significant precedent for future reforms in Ukraine's corporate governance sector.

In light of the recent developments regarding the tender for PJSC 'Morshynska', it's important to note that the Asset Agency has faced challenges in tracking thousands of seized properties, raising concerns about the efficiency of asset management in Ukraine. This situation underscores the need for enhanced oversight to prevent potential financial abuses in state-managed assets.