Zelensky vows power sector overhaul after $100m corruption scandal

Ukrainian President Volodymyr Zelensky has vowed to “overhaul” state-owned power corporations, after a serious corruption scandal engulfed the nation’s power sector.

Round $100 million (£76m) has been embezzled, anti-graft investigators stated, inflicting outrage in a rustic the place Russian assaults have resulted in crippling energy outages.

“Alongside a full audit of their monetary actions, the administration of those corporations is to be renewed,” Zelensky wrote in a put up on X on Saturday.

Energoatom, the state nuclear firm on the coronary heart of the scandal, could have a brand new supervisory board “inside per week,” he added.

A number of of these implicated within the scandal have shut hyperlinks to the Ukrainian president.

The scandal is unfolding towards the backdrop of escalating Russian assaults on Ukrainian power services, together with substations that provide electrical energy to nuclear energy crops.

“I’ve additionally instructed authorities officers to take care of fixed and significant communication with legislation enforcement and anti-corruption our bodies,” Zelensky wrote.

He additionally referred to as for the fast appointment of a brand new head of Ukrhydroenergo, a hydropower producing firm, and reforms for oil and fuel large Naftogaz and the nation’s Gasoline Transmission System Operator.

Two ministers have been pressured to resign over the corruption scheme and a former enterprise companion of Zelensky was sanctioned earlier this week when the scandal broke.

On Monday, the Nationwide Anti-Corruption Bureau of Ukraine (Nabu) and Specialised Anti-Corruption Prosecutor’s Workplace (Sap) stated the 15 month-long investigation had revealed a number of members of the Ukrainian authorities have been concerned.

A few of these implicated within the scandal are or have been, shut associates of Zelensky’s. Amongst these alleged to be concerned are Justice Minister Herman Halushchenko, former Deputy Prime Minister Oleksiy Chernyshov and Timur Mindich – a businessman and a co-owner of Zelensky’s former TV studio Kvartal95.

Zelensky has beforehand stated he’s dedicated to totally cooperate with the anti-corruption investigation.

“I’ve additionally instructed authorities officers to take care of fixed and significant communication with legislation enforcement and anti-corruption our bodies,” he stated on Saturday.

“The total transparency and integrity within the power sector stay an absolute precedence.”

However the scandal has introduced Zelensky’s dedication to preventing corruption underneath scrutiny as soon as once more.

In July, he confronted backlash after he signed a legislation limiting the independence of Nabu and Sap.

The outrage was solely quelled by Zelensky’s resolution to reinstate their freedom, however the debacle prompted criticism from European allies together with France and Germany, whereas ambassadors from the G7 group of countries expressed the need to debate the problem with the Ukrainian management.