UKROBORONPROM SUPERVISORY BOARD ARRIVED AT KEY DECISIONS

On January 31, the UKROBORONPROM Supervisory Board – after a long-term meeting, attended by all appointed members of the Board, the Director General and his deputies – took key decisions on the activities of the Concern.

During the meeting, UOP management report was heard; strategic directions for UOP development, corporatization process of UOP enterprises-participants, the international audit, the system of effective anti-corruption measures, creation of an advisory body and other issues were discussed.

The Supervisory Board supported the strategic directions for UKROBORONPROM (UOP) development. After the Cabinet of Ministers of Ukraine adopts a development strategy for Ukrainian industry, this document will be adjusted and should become a detailed "road map" for each enterprise.

The directions cover the development of production capacities, the development of new production, cost optimization and other measures, in accordance with modern business models. In addition, the Supervisory Board approved UOP financial plan for the current year.

The Supervisory Board approved corporatization measures for UOP enterprises – transformation of state enterprises into public joint stock companies – 100% of shares will belong to the state. For this purpose relevant bills are being drafted, which are submitted for consideration by the Verkhovna Rada of Ukraine.

It is corporatization that allows the transition to modern Western enterprise management systems. This reorganization opens the way for Ukrainian and foreign partners who will receive clear, universally accepted rules of investing in the world. This will allow to increase production, modernize equipment, scale scientific activity, launch new promising projects. Such world giants as Boeing, Airbus, Lockheed Martin etc. are just joint stock companies.

The Supervisory Board also familiarized with the multi-step system of anti-corruption measures, implemented at UKROBORONPROM, and approved implementation of provisional measures to prevent corruption in the Concern system.

During the meeting it was announced that over 3 years law enforcement officers were provided with information on 185 materials concerning offenses and managed to prevent 341.5 million UAH loss.

UKROBORONPROM conducts enormous anti-corruption work. These results should be communicated to the public. It is necessary to expand cooperation with the law enforcement agencies, journalists and NGOs, "said the Chairman of the Supervisory Board, the rector of the National Technical University of Ukraine "Kyiv Polytechnic Institute named after I. Sikorsky" Mykhaylo Zhurovs’kyy.

The Supervisory Board approved the audited financial statements for 2017 and the commencement of the international independent audit; operational, technological, financial, legal review and diagnostics (due diligence) of activities of UOP and its enterprises-participants.

"Such an audit of the state industrial and production association will be held for the first time in the history of Ukraine, and the fact that a leading consulting company or even a world-class consortium – on an open competitive basis – will be involved in this task is important to us” – said the head of the SC "UkrOboronProm" Roman Romanov.

The possibility of creating a deliberative body under the Supervisory Board – the need for which has been analyzed and proposed by council members – was brought up. The task of this advisory body will be to analyze and discuss key issues of the defense industry, as well as maintaining an open dialogue with the public.