Crimean Soda Plant: privatization broke law say investigators

The Ukrainian State Property Fund (SPF) has uncovered violations during the privatization of Crimean Soda Plant (Krasnoperekopsk, Crimea).
During a check carried out by the Control and Audit Departme…

The Ukrainian State Property Fund (SPF) has uncovered violations during the privatization of Crimean Soda Plant (Krasnoperekopsk, Crimea). During a check carried out by the Control and Audit Department and economic intelligence work by the SPF, it was established that the the law on the privatization of state-owned enterprises and the method for appraising property subject to privatization had been contravened. The results of the investigation have been sent to the prosecutor“s office. In June 2005, prosecutors opened a criminal case into violations during the privatization of the plant. RSI Erste Beteiligungs (Hamburg, Germany) acquired 89.48% of the shares in the plant from the Clearing House brokerage in February 2004. The new shareholder cut the size of the supervisory board from 6 to 4 members and replaced all of them. SPF declared Clearing House the winner of the privatization in December 2003.