yesterday at 12:29
,Germany
The State Enterprise «Forests of Ukraine» has reported record financial results while simultaneously announcing strengthened control over the use of funds. According to the enterprise, in 2024, it paid over 15 billion UAH in taxes, and its profit doubled — reaching 8 billion UAH. Against this backdrop, the Supervisory Board emphasizes that such significant financial resources must be used with maximum transparency and require constant and strict oversight.
The Supervisory Board notes that the forestry sector currently demonstrates one of the highest growth rates among state enterprises. At the same time, the Board believes that high revenues and large-scale expenditure programs automatically raise the requirements for transparency and accountability in management. This is the rationale behind launching a package of audits and inspections at multiple levels.
A separate decision has introduced regular reporting by management on major expenditures. Specifically, the head of the enterprise is required to submit information to the Supervisory Board by the 10th of each month regarding expenditure contracts exceeding 1 million UAH.
The Supervisory Board also states that it requires systematic data provision across all key areas — implementation of the annual investment plan, the status of property rights registration, information from the personnel orders registry, and more. To this end, it has established its own independent tool for data collection and systematization.
The Supervisory Board announced that it has initiated an independent audit of the State Enterprise «Forests of Ukraine» for 2022–2024, as well as a separate audit for 2025.
This involves an external review aimed at providing an independent assessment of the enterprise's financial and economic activities over several reporting periods.
A particular emphasis has been placed on the area of public procurement. The Board has appealed to the State Audit Service of Ukraine and the Antimonopoly Committee of Ukraine with a proposal to review the enterprise's procurement procedures for 2025. The involvement of the State Audit Service and the Antimonopoly Committee is intended to strengthen state oversight of compliance with competitive rules and legality.
The Supervisory Board reports that it was formed at the beginning of 2025 and consists of three independent members and a state representative — Oleksiy Kucher.
According to the Board, ten of its meetings have already taken place during the year, along with over twenty working sessions and meetings.
As part of corporate governance reforms, three specialized committees have been established, and an office of the corporate secretary has been created. Special attention is given to the establishment of the Internal Control Service (ICS), whose functions include internal audit, compliance, risk management, and other control mechanisms.
Additionally, an Anti-Corruption Policy and Business Ethics Rules have been approved. According to the Supervisory Board, these documents were developed in collaboration with the Basel Institute on Governance and align with the best international practices.
In parallel, the Board has sent requests to key law enforcement agencies regarding any existing criminal proceedings that may involve the enterprise's management. Furthermore, an independent comprehensive evaluation of top management is planned — assessing their professionalism, effectiveness, and adherence to business ethics. For this purpose, a specialized HR company will be selected through a competitive process.
In conclusion, the Supervisory Board forecasts that over the next year, the enterprise will undergo six different inspections simultaneously: two independent external audits, a state audit, an internal audit, an HR audit, and an inspection by the Antimonopoly Committee. The results of these procedures are expected to form the basis for further conclusions regarding the effectiveness of management at the State Enterprise «Forests of Ukraine» and the quality of control over the use of significant financial resources.
