NBU supports actions of the Security Service of Ukraine, which on 1 September informed the detention of former director of Corporate Non-State Pension Fund of the National Bank of Ukraine.

In February 2015, of the fact of embezzlement and legalization of funds by former offocials of Corporate Non-State Pension Fund of the National Bank of Ukraine, the Security Service of Ukraine initiated criminal proceedings.

According to law enforcement bodies, former officials of the Fund using the illegal schemes transferred from the  Corporate Non-State Pension Fund of the National Bank of Ukraine over UAH 600 million to accounts of commercial entities. In general, illegal actions of former managemt of the Fund resulted in loss in amount about UAH 900 million.

We recall that after change of the NBU management in 2014, the audit of its corporate pension fund took place. According to its findings, former management of the Fund used different fraudulent schemes to transfer funds from Corporate Non-State Pension Fund of the National Bank of Ukraine.  Within the framework of inverstigation, the conclusion of state expertise on some embezzlement facts was made.

Schemes resulted in significant impairement of Fund’s assets. Few independent audits showed that the net value of assets of the Fund is overstated two-fold, at least. Thus, KPMG report states that in end-2014 it made around UAH 800 million instead of UAH 1.7 billion stated peviously by former management of the Fund.

Having obtained the mentioned information, NBU filed a claim to the Security Service of Ukraine regarding investigation of numerous schemes of transferring funds from the Corporate Non-State Pension Fund of the National Bank of Ukraine.

According to the Security Service of Ukraine, currenty, Kyiv Court of Appeal chose for the former manager of the Funa preventive measure in form of custody with alternative of UAH 2 million of bail.                       

Pre-trial investigation of range of proceedings under Article 191 part 5 of the Criminal Code of Ukraine are under way. Security Service of Ukraine served with charges three persons involved in this case.

NBU closely cooperates with law enforcement bodies, which investigate cases regarding trasnferring funds from the Fund by the former management, and hopes that the court will pass fair decision regarding persons guilty of embezzlement of funds of the NBU Corporate Non-State Pension Fund.

“We hope that partial repayment of funds both at cost of debtors’ property and defenfdants’ property repossessed in course of investigation. At least, we hope for fair judgement for the latter for embezzlement of funds of retired and retired-to be employees of the NBU,” mentioned Mr Oleh Kurinnyi, Director of Department of the NBU Corporate Non-State Pension Fund.

In 2015-2016 new managenet of the Fund put every effort to recover the value and bring the assets back. Profitable activity of the Corporate Non-State Pension Fund of the National Bank of Ukraine was recovered.

Reference: NBU Corporate Non-State Pension Fund was established in 2007. The Fund is the biggest in Ukraine, its value makes 51% from value of all assets of all non-state pension funds, and it’s the most trusted non-state pension fund both by structure of assets and the management system. In 2015-2016, the Non-State Pension Fund underwent distressed assets restructuring, initiated claim activities regarding repayment of bad debt, and brought assets to fair market value from 21 March 2016. Fair Value Measurement was performed by KPMG anf EY according to International Measurement Standards (IMS).

As of 30 August 2016 net value of assets of the Fund made UAH 1 007 billion.