The economy in the area of high turbulence

Author : Pavel Karnatskii

Source : 112 Ukraine

Flight safety is one of the areas that will be supported by the state, even at the last breath
13:00, 19 November 2015

112 Agency

In one the recent interviews with the former head of the State Property Fund Valentyna Semenyuk-Samsonenko, who died under mysterious circumstances, expressed an interesting fact about the origin of billions of capital. According to her, Ukrainian oligarchs have never had any profitable business and do all their capital on the management of state property. Then "suicided", again according to the investigation, another chairman of the State Property Fund and the origin of the big capital remained unexplored again.

Among existing as of today of Ukraine's debt obligations, the sovereign government debt is only a small part of the debt iceberg. Foreign debts were formed out from the guaranteed debt of these same "managers" that were employed for management of the state assets. Then somehow loans have become government bonds, and money settled on the offshore accounts of those who carried out the management of public enterprises. Through dubious contracts, the funds allocated for the development of state-owned enterprises, passed into the hands of private owners, and ensured this continuous stream of embezzlement protégés of financial-industrial groups. Since the beginning of military operations in Ukraine and collapse of the economy the number of such precious objects is getting lower, and that it is not surprising that the struggle for them becomes fiercer. Let’s examine the situation on the example of one of public companies.

In any economy there are natural monopolies, on which, among other things, national security interests are tied to. The state company UKSATSE is among them, because it is both a dispatcher and a navigator that controls all air space of the state.

Flight safety  is one of the areas that will be supported by the state, even at the last breath. But meanwhile , "oxygen masks" are in questionable hands, and who knows when the valve will be block for all of us.

In June 2014, when the former head of UKSATSE was accused of treason, the Ministry of Infrastructure has appointed a new head - Dmitry Babijchuk. According to a fatal accident, coincidence, or dispatchers negligence took place, a month after the new leader has set the main task for ensuring safety - Malaysian "Boeing" with passengers was hit over Ukraine. The final report of the International Commission investigating MH17 crash claims the fault to Ukraine’s air traffic controllers. It was unacceptable, according to the international investigators’ point of view, to direct passenger aircraft in the combat zone. Especially when if consider the information about the potential threat to passengers relating to the movement of an unidentified Buk in the conflict zone. Managers of UKSATSE hadn’t closed the airspace, and it had caused damage to the authority of the state.

Not surprisingly, as a result of such negligence, airlines prefer to operate without Ukrainian dispatchers. But the fall of the income of the state enterprises is related to the consequences of the crash, according only its top management. According  to the parliamentary commission of inquiry, more than 60 million UAH  were simply stolen from the company. In addition, there are many signals over doubtful conducted tenders. Surprisingly that prosecutors still didn’t pay attention to all these charges. Although they deal of damage to the state in favor of private businesses. But corruption in the enterprise UKSATSE has alarmed the unions and the labor collectives.

The team is angered by the placement of state enterprises capital in the amount of 280 million on the accounts of the non-state "Platinum Bank" as it contradicts to the instructions of the Cabinet of Ministry. Instead of going for the development, upgrading industrial park and new systems of safety, state money earns interests to private pockets. Previously, the airport "Borispol" has already lost 100 million UAH as a result of the collapse of the "Rodovid Bank" in a similar way. So why to step on the same rake? The question is rhetorical, since designated in the last year summer, the director of the State Enterprise UKSATSE removes himself from work. He prefers free flights around the earth "ball" for the state account and the rest on the best resorts of the world, while interim Mr. Kosyanenko manages for the last six months. By the way, by order business capital went into a private bank.

Workforce appeals still are without the attention of Ministry of Interior and The General Prosecutor's Office of Ukraine, probably due to the high patronage possessed either the bankers, or the new manager. From biography of interim it’s known only that in the past he was a member of the Security Service of Ukraine, and before his appointment on the post of first deputy Babijchuk shortly worked as deputy general director of the airport Boryspil for air security. He doesn’t have any experience of managing by himself but it seems that this is not required for those who lobbied for his appointment.

On the position of his deputy is preparing notorious expert Valentin Palamarchuk. Yes, exactly the same ex-director of the Donetsk airport will take a high position in the UKSATSE. The name Palamarchuk is associated with scale corruption embezzlement, but the investigation has firmly buried under the rubble of the Donetsk airport terminal. Today it is among the broken glass and twisted reinforced, no expert can determine which objects are paid out in preparation for Euro 2012 were built and of what materials. It is curious that the former CEO, distribute contracts for the construction of the airport, again appeared on the air after three years of silence, and only after the WCT had been destroyed. Coincidence?

112 Agency

It is not a question only of corruption and embezzlement of budget. Appointment of the head with a dubious reputation in the department responsible for air safety, can have dangerous consequences. Errors air traffic controllers lead to large-scale tragedies and loss of life. And so Ukraine is in the list  of the worlds of terrorism hotspots,  because of downed Malaysian airliner in Donbas. And this is a direct blow to the image and the "wallet" of Ukraine.

The state can’t and should no longer provide income to financial-industrial groups, giving them to manage it’s property. Budget 2016 according to all forecasts tends to get anti-social orientation, and on amid of the forced reduction of budget expenditures on social sphere exorbitant appetite of embezzlement can lead to a social explosion in any enterprise, which instantly spread throughout the country.

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