The state coal enterprises have twice as many safety violations and three times more emergencies than the private ones – the Accounting Chamber

13.03.2020 10:41

During 2017–2019, the State Paramilitary Rescue Service (SPRS) detected twice as many safety violations at state-owned coal mining enterprises as at private ones.

The above is stated in the audit results of the effectiveness of the use of state budget funds allocated for rescue operations and measures for labor protection and safety at coal mining enterprises. Igor Iaremchuk, a member of the Accounting Chamber, was leading it.

SPRS serves 82 objects of the coal industry (39 state-owned and 43  private), which employs about 50 thousand workers.

In addition to carrying out emergency rescue operations, the Service checks the state of emergency protection of enterprises and facilities' readiness to eliminate emergencies. In 2017, 72 thousand violations were recorded at state-owned enterprises, 35 thousand at private ones, in 2018 – 67 thousand and 31 thousand, respectively, in 2019  74 thousand and 33 thousand. Public facilities were almost three times higher than private ones.

Between 2017 and 2019, 2,195 workers were injured, 64 of them fatally (37 died at government facilities).

Among the main causes of injuries at state-owned enterprises is the low level of mechanization of injury-prone work processes, the shortage of highly reliable control and measuring equipment, and the lack of comprehensive emergency protection systems.

SPRS is not authorized to apply administrative measures, impose fines, and suspend enterprises' work if they do not comply with occupational safety regulations. The Service can only make suggestions to officials. As a result, the SPRS activity's efficiency is reduced, and the risks of emergencies at the coal facilities are increased.

Simultaneously, the average number of employees in SPRS decreases every year due to low wages. Due to insufficient funding, the actual number of branches of individual units of the SPRS does not meet the standards, which can complicate the timely implementation of tasks.

Automotive and special equipment is morally and technically obsolete. Almost all of it needs to be replaced.

In 2017–2019, mining and rescue activities, labor protection, and safety improvement at coal mining enterprises received over UAH 968 million, which were used almost in full.

SPRS revenue from sales of works and services in 2017 amounted to UAH 21 million, in 2018  UAH 49 million, in 2019  UAH 77 million. Thus, the state budget remains the main source of funding for the Service, although its revenue from the provision of services has been growing every year.

Capital expenditures for strengthening and development of the material and technical base of the Service in 2017–2019 within the budget program for mining and rescue activities (KPKVK 1101100) were not carried out.

The auditors concluded that the planning of expenditures on SPRS was obviously aimed at obtaining the maximum possible amount of funds from the state budget. Thus, the cost of rescue services for commercial enterprises, the number of which at the time of the audit is 50%, actually relied on the state budget.

Allocation of funds under the budget program for labor protection and safety increased only after the accident at the mine "Stepovaya" SE "Lvivugol" in 2017 (8 workers died, 28 injured). Then 100 million hryvnias were allocated from the state budget.

At the expense of these funds, the companies purchased 10.5 thousand self-rescuers, which significantly improved personal protective equipment.

At the same time, the Accounting Chamber found violations of the law on public procurement in the amount of 84 million hryvnias.

Based on the results of the audit, the Accounting Chamber recommends to develop and approve the Program of reforming and developing SPRS were to determine the amount and sources of funding for technical equipment of this Service, as well as to legislate the mechanism of reimbursement of enterprises for all forms of ownership protection.

The report and decisions on the audit results will be published on the Accounting Chamber's official website.