SPFU has secured significant revenues from privatization, but a number of challenges remain in state property management
On August 5, the Accounting Chamber approved the Report on the Results of the Analysis of the Annual Report of the State Property Fund of Ukraine (SPF, Fund) for 2024 in the part that affects the implementation of the state budget. The analysis revealed both positive achievements and a number of significant shortcomings in reporting and state property management.
The member of the Accounting Chamber responsible for the analysis, Hennadiy Plis, noted that the information presented in the report generally reflects the results of the Fund's activities and complies with the Methodological Recommendations approved by it, and the report itself was submitted on time.
Among the key positive results of the Fund's activities highlighted in the report are significant revenues from privatization: the plan was implemented by 247%, almost 10 billion UAH were transferred to the budget, of which 6.45 billion UAH were from large privatization, 3.49 billion UAH from small privatization. In addition, the objects were sold at a significantly higher starting price: by 41% - in the process of large privatization and by 168% - in the process of small privatization. Also, 809.7 million UAH were sent to the budget from the sale of SPFU sanctioned assets.
At the same time, an analysis of the structure and content of the Report revealed a number of shortcomings. In particular, the auditors emphasize that the Report does not contain a sufficient analysis of problems in the field of state property management, the reasons for their occurrence, and data on the use of budget funds by the Fund, which reduces the transparency and informativeness of this document.
The auditors also established that the Fund does not properly account for sanctioned assets. This makes it impossible to provide a correct assessment of the condition of these assets, their value, the effectiveness of their management, and their actual implementation.
Analyzing the results of the SPFU work presented in the report, the auditors identified the following important facts that require attention:
- Almost 70% of enterprises started 2025 without approved financial plans, which makes it impossible to properly forecast revenues.
- Only 7% of enterprises with a state share of over 50% paid dividends. From the payment of dividends and taking into account part of the net profit, only UAH 182 million was received by the state budget.
- At the same time, the wage arrears at enterprises managed by SPFU reached UAH 685.5 million (UAH 84.6 million more than in 2023).
- The average rental cost of 1 m2 of state property in 2024 decreased by a third. At the same time, tenants accumulated a debt to the state budget of UAH 409.3 million (of which UAH 59.6 million - bad debt).
«Most enterprises in the Fund's management sphere declared losses in 2024, which in total reached UAH 6.45 billion. Wage arrears are growing, because there are insufficient measures to repay them», – emphasized Hennadiy Plis.
In order to increase the efficiency of state property management and increase budget revenues, the Accounting Chamber recommended that the Fund strengthen control over the activities of enterprises and the timely return of state property after lease, ensure proper accounting of sanctioned assets, improve planning mechanisms and increase the efficiency of enterprises, and initiate amendments to Resolution No. 634 in order to review the amount of benefits for tenants of state property. Separately, the SPFU was recommended to improve methodological approaches to preparing annual reports, in particular in terms of expanding information on the use of budget funds, unreturned property, and the status of work with sanctioned assets.
During the meeting, members of the Accounting Chamber and the Acting Head of SPFU, Ivanna Smachylo, who was present at the meeting, discussed the issue of regulating the accounting of sanctioned assets. The Head of the State Property Fund generally agreed with the recommendations of the Accounting Chamber.
As a result, the Accounting Chamber approved the Report, and decided to send information on the results of the analysis to the Verkhovna Rada of Ukraine Committee on Economic Development, the Cabinet of Ministers of Ukraine, as well as the State Property Fund, and also to post the Report on the institution's website.
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