State Audit Service causes Ukraine's leading military-industrial complex companies to announce possible halt in production

Leading companies of the military-industrial complex of Ukraine reported to the President's Office, announcing the possibility of a complete stop of production due to the actions of the State Audit Service.

Source: This was reported by Tsenzor.NET, which has at its disposal the corresponding letter, as well as a response to this letter by Andrii Yermak, head of the President’s Office. 

Details: The letter was signed by the Pavlohrad Chemical Plant Research and Production Association, state company Design Bureau Pivdenne named after Mikhail Yangel and the Southern Machine-Building Plant named after Oleksandr Makarov. 

All of them complain about the conclusions of the State Audit Service that the profit included in the price of products of these companies seems to be unprofitable for the state.

At the same time, it is noted that state companies are created to generate profit. The profit of state-owned companies is justified by their financial plans and is included in the manager's contract as a key indicator of its activities.

"In addition, using profit, state companies purchase equipment and raw materials and manufacture defence products with partial financing of its production by budget managers, as well as the restoration of production facilities and buildings destroyed as a result of missile attacks on the facilities critical for the production of defence products," the appeal says.

The publication also has at its disposal a letter from Andrii Yermak, the head of the President’s Office, to Prime Minister Denys Shmyhal, in which it is proposed to "immediately consider the issues raised, take the necessary response measures and inform the applicants and the Office of the President of Ukraine about the results."

Background: Earlier, the Neptune missile manufacturer, the State Kyiv Design Bureau Luch, appealed to the government twice because of the actions of the State Audit Service. The indignation of manufacturers was caused by conclusions that recognised a violation of the inclusion of profit in the price of products.

Subsequently, the manufacturer of the Pozhmashina demining machines said that the State Bureau of Investigation is putting the companies under strain on the basis of the conclusions of the State Audit Service.

In turn, the State Audit Service states that the indignation of manufacturers is manipulative, aimed at shifting responsibility for non-fulfillment of contracts to auditors.

It was also noted that from the beginning of the full-scale invasion, the State Audit Service revealed fraudulent actions of dishonest manufacturers, executors of state contracts in the field of defence  that wanted to withdraw UAH 6 billion (about US$173 million) from the country's budget.

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