Main Control and Revision Office of Ukraine: Tymoshenko's Government Misspent 4.5 bln USD of IMF Funds in 2009

By Press Office Of The President Of Ukraine, PRNE
Thursday, October 21, 2010

KIEV, Ukraine, October 22, 2010 - Following the international auditors, the Main Control ad
Revision Office of Ukraine (MCROU, Public Spending Inspection)revealed the
results of its internal audit of the Ukrainian government's financial
activity in 2008-2009. As the Head of MCROUPetro Andreev announced at a press
conference, Yulia Tymoshenko's government directed more than 36.1 bln UAH
(4.5 bln USD) received from the International Monetary Fund in 2009 to
finance the current needs of the state budget instead of covering the
external debt, as it was prescribed by the agreement with the IMF.

The total amount of Yulia Tymoshenko's government violations
in spending Ukraine's public funds in 2008-2009 reached 53 bln UAH (6.6
billion USD
), according to MCROU's report. According to Mr. Andreev, alarge
part of the funds laundered from the State budget wasspent on Ms.
Tymoshenko's presidential election campaign.

In addition, the State Treasury of Ukraine illegally provided
loans to the Pension Fund, amounting to 42.1 bln UAH (5.4 bln USD). The State
Treasury also placed large deposits in selected commercial banks, including
6.4 bln UAH (equal to 0.8 bln USD), 1.165 bln USD, and 97 mln EUR from the
State Budget funds. These funds were placed either with the reduced interest
rates or interest-free.

Mr. Andreev also mentioned the violations concerningfunds
obtainedunder Kyoto Protocol. He referred to the purchase of emergency
ambulances at a price that was inflated three-fold. Additionally, Andreev
mentioned nationalization of the bank "Kiev" as another example of the abuse
of national budget.

The full text of the Main Control and Revision Office can be found

The international audit, referred to recently by numerous
international media, was conducted by three US-based companies, Trout
Cacheris PLLC, Akin Gump Strauss Hauer&Feld LLP and Kroll Inc., andwas
released on October 14.

Subsequently, two lawsuits were filed in the UK and US courts
with the aim to claim back the money misspent by Yulia Tymoshenko's
government from various companies which had been found involved in the money
laundering schemes.

The full text of the international auditors' report can be
accessed at the Ministry of Finance of Ukraine's official web-server:

For more information please contact the Main Control and Revision Office's press service: +380444175197 Tetyana Kravchuk or Vasyl Kalyaev, press at .

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