The Control and Revision Office of Ukraine has identified violations of law and the procedure for the use of public funds worth Hr 93 billion (about $12 billion) in 2008-2009 and the first quarter of 2010.
"An audit of the use of Ukraine’s public finances in 2008-2009 and the first quarter of 2010, which was conducted by a special service controlling the observance of the legality of budget operations – the Control and Revision Office, which is legally responsible for the results of such an audit, witnessed the unprecedented misuse of public finances worth Hr 93 billion (about $12 billion)," reads a statement posted on the Web site of the Cabinet of Ministers, referring to the data of the Control and Revision Office.
State auditors found that the amount of losses caused to the state had exceeded Hr 35 billion ($4.4 billion).
The report notes that the transcripts of government meetings stipulate that Tymoshenko "personally imposed illegal schemes to use budgetary funds."
"So, the ambulances and a medical helicopter bought under state guarantees were registered as medical equipment (medical products) in order to avoid paying value-added tax, as well as excise and customs duties," the office said.
In addition, the office, as examples of illegal actions by the government led by former Prime Minister Yulia Tymoshenko, pointed to the financing of the production of free state acts on the right to land ownership using funds earmarked for a cancer center, as well as the provision of a short-term loan from the state budget’s general fund to the commercial corporation Ukravtodor so that that it could repay its external debts.
The Control and Revision Office noted that "such fraud" had provoked resistance even among some government members, and only "under pressure" from the prime minister had such illegal schemes been realized.
"The seriousness of threats to those who did not agree with Prime Minister Tymoshenko could be confirmed by a quote from the transcripts of a government meeting, when Tymoshenko issues an instruction: ‘I ask the Interior Ministry to set up special teams that will just deal with severe pressure on enterprises. Initiate criminal proceedings, and deprive the people of freedom for three or four days," reads the statement.
Charges were also brought against the Tymoshenko government that it purchased sugar at an inflated price of Hr 243 million from a Ukrainian company, Hermes-Trade LLC, in order to replenish the reserves of the State Committee for Material Reserves.
In addition, auditors from Trout & Cacheris and Akin Gamp Strauss Hauer & Feld LLP established there were numerous violations in the procurement of medicines and medical equipment overseas using budgetary funds worth over Hr 400 million (over $50 million).
