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EXPERTS ARE PERPLEXED BY MOTOR SICH’S REPORT ON THE PROFIT OF UAH 930 MILLION AND DOUBT THE VERACITY OF THE DATA

 КYIV. November 3. UNN. For many years Motor Sich PJSC has not carried out obligatory audits and has not paid dividends to its shareholders; therefore, the data on profit, ‘drawn’ by the company in the next quarterly report, raises serious doubts. It was stated by the well-known economic expert Aleksandr Okhrimenko in a commentary on the dissemination by Motor Sich through the information disclosure system of the National Securities and Stock Market Commission (NSSMC) of data on the net profit of UAH 930 million based on the results of 9 months of 2020.

‘These numbers raise more questions than they answer. Motor Sich completed the same period of 2019 with a net loss of UAH 532.72 million, before that the first half of 2019 was “minus” UAH 426 million, in the first quarter of 2020 Motor Sich reports a net loss of UAH 219 million… And now there is almost a billion in net profit! Under other circumstances, this news would have pleased many, especially the company’s shareholders. But this profit is disappearing in an unknown direction as the company has not paid dividends for several years and it is not yet clear when its regular activity will be restored,’ said Aleksandr Okhrimenko.
As it is known, the shares of Motor Sich OJSC have been blocked by four arrests. Because of it, meetings of shareholders are not held, dividends are not paid, the terms of office of the official management bodies of the joint-stock company have expired. Thus, the ex-owner Viacheslav Boguslaev and his team of top managers retain actual control over the activities of Motor Sich and its financial flows without any legal grounds.

In its report in the information disclosure system of the National Securities and Stock Market Commission, Motor Sich openly admits that there are no audit results for 2018 and 2019. According to the company, it was ordered by the auditors of the company from the ‘big four’ KPMG. ‘Without an audit report, any data is doubtful. But, at the same time, after scandals with audit results during the bankruptcy period after 2014, even obtaining the conclusions of the auditors is not a guarantee of order in the audited company. Everyone who follows the events in the banking system remembers the story about PWC, which the NBU accused of a poor-quality audit of that very Privatbank. Or the scandal with the Forum bank, which PWC, KPMG and Deloitte “audited” with discrepancies of UAH 2.5 billion for the same calendar period. Not to mention how KPMG, which is currently auditing Motor Sich, “overlooked” the impending collapse of bank “Ukraine”. By an amazing coincidence, then one of its leaders was the future head of the NBU and the guarantor of the Constitution. Viktor Yushchenko and his future wife Kateryna Chumachenko worked in the Ukrainian office of KPMG...’ said Okhrimenko.

Answering the question where the declared profit from the stagnating Motor Sich could come from, Aleksandr Okhrimenko said, ‘This is amazing information. The company does not have large orders and we only hear announcements about some projects. But you cannot put these announcements in the financial report. According to my information, the only significant deal is the supply of about 100 engines to China, for a total amount of about $170 million. But the Chinese market, taking into account how Ukraine treats the Chinese investors of Motor Sich, is no longer there, and these 100 engines are a swan song and the last forgive me from the Celestial Empire.’

‘Perhaps the managers of Motor Sich, who, according to the court registers, stole about half a billion from their native enterprise, repented and returned the money?’ snipes the expert, recalling the high-profile criminal case against Sergey Voitenko, the Chairman of the Board of Directors of PJSC Motor Sich, and Viktor Lunin, his Financial Director. Now, the courts are considering claims of the shareholders of PJSC Motor Sich, in which they demand from top managers to compensate for the damage caused to the company. Besides, a group of Chinese investors of Motor Sich informed the Ministry of Justice that they are preparing for international arbitration and going to collect $3.5 billion from the state of Ukraine with the support of a renowned American law firm.