Archive for June 11th, 2010

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Auditing the last government will harm Ukrainian interests…..apparantly!

June 11, 2010

Well dear readers, what do you make of this?

Interfax-Ukraine

The activity of Trout Cacheris PLLC, which the government hired to evaluate the financial and economic activity of the government of former Premier Yulia Tymoshenko, could harm the interests of Ukraine, MP from the BYuT faction Serhiy Vlasenko has said.So, let me get this straight……Rather than three western companies auditing the last governments acitivities, the former government would prefer the internal organs of Ukraine to carry them out?

“During the audit, a private foreign company could obtain information, which in Ukraine is restricted information, in particular, [information] for official use, secret or top secret [information]. This could harm the state interests of Ukraine, the BYuT press service cited Vlasenko as saying on Wednesday.

According to the MP, any investigations in Ukraine, the investigation into criminal case, anti-monopoly investigation and others are held under “special procedures,” and only state authorized establishments, such as the prosecutor’s office, the Interior Ministry, the Anti-Monopoly Committee and others can carry out them.

“Ukrainian legislation foresees no procedures for private companies to carry out investigations, and this means it foresees no obligations for legal and private entities to participle in such investigations, moreover, to give testimony, explanations and so forth during such investigations, as the legal power of such testimony is invalid,” Vlasenko said.

As reported, the Ukrainian government hired Washington DC based Trout Cacheris PLLC to evaluate the financial and economic activity of the previous government from 2008 through the first quarter of 2010.

Trout Cacheris, PLLC, will lead a team of professional legal and consulting firms that will include Kroll, Inc. and Akin Gump Strauss Hauer & Feld, LLP.

The audit is necessary to evaluate the actual financial and economic condition of Ukraine and the legality of budgetary expenditures by the cabinet of former Prime Minister Yulia Tymoshenko, the press service of the government said, adding that the audit would help Ukraine recover from the crisis

This would be, one assumes, that they can simply then lable the audit false, faulty and the usual governmental lies?

Much harder to spin that line when it is done by three international companies, none based in Ukraine though eh?

As this politician well knows, any meaningful business in Ukraine is subject to (NC)ND agreements as standard practice.  Arbitrational courts normally nominated are London or Stockholm.  I am subject to 8 current NCND Agreements and none of them are as publicly sensitive as this (even if they are as sensitve for those involved from a business perspective).

Given that a breach of the Non-Disclosure Agreement these companies have no doubt signed prior to the start of the audit, this politician knows there are no such grounds for concern for two basic reasons.

The first, any breach will prove exceptionally expensive via court decisions from these courts.

Secondly, 99.99% of their existing and future clients will also expect ND Agreements prior to engaging them and a breach is simply not good for business or reputation going forwards.

What is really at stake here is the electablility of the current opposition when the results become known.  Everyone here knows they stole from the nation but the actual amount may be beyond the reckoning of many.

The squirming the last government are making over this issue is starting to release the smell of real fear about what will be discovered and cannot be dismissed as internal false auditing.

They should be thankful that the current government are setting this precident as it will allow for similar actions when they eventually lose power over their spending.

I would suggest that the BYuT now consider a rapid and thorough rebranding so that it can distance itself now from the old ways of the old party as no doubt the results of this audit will be damning.

I know this will not be good for the ego of Ms Tymoshenko but it will be necessary none the less.

As for those BYuT shared power with, the OU-PSD during thee time period of this audit, they are political history when the next elections occur along with Bloc Lytvyn.  No amount of rebranding or distancing themselves from the result of this audit will save them.

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Well that’s this years budget deficit dealt with!

June 11, 2010

Interfax-Ukraine – Ukraine on Tuesday received a $2 billion loan from Russia, a source in the Ukrainian government told Interfax-Ukraine.

The funds were most likely provided under a joint Russian-Ukrainian project for the completion of two reactors at the Khmelnytsky nuclear power plant, the source said.

At the same time, the source did not elaborate on the creditor, saying that the currency was transferred to the government’s account, having thus considerably increased the international reserves of the National Bank of Ukraine.

Vitaliy Lukianenko, the press secretary of Ukrainian Prime Minister Mykola Azarov, neither confirmed nor denied the information in an interview with Interfax-Ukraine. According to him, talks on a large loan for the completion of the Khmelnytsky NPP were held with Russia, but he said he had no information about the transfer of the funds at that moment.

The Ukrainian Finance Ministry’s press service was also unable to either confirm or refute the information.

Russia’s Finance Ministry in turn said that the loan had not provided at the state level. The ministry said that Russian banks could have issued the loan to Ukraine, yet it did not elaborate on that.

Of course it could have been covered by numerous Ukrainian multi-billionaires either individually or collectively……but no!

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