Regulators cause problems for major Ukrainian meatpacking company

Subject of Complaint: Deputy Unit Supervisor of the Poltava Oblast Prosecutor’s Office, Poltava Oblast State Ecological Inspection, State Price Control Inspection, Ministry of Ecology and Natural Resources, State Geology and Subsoil Office
Complaint in brief: On June 22, 2015, the BOC received a complaint from Globyno, a Ukrainian meatpacking company.  Firstly, the Complainant claimed that the regional PO had exceeded its authority in the course of an environmental investigation. This included several illegal searches of company property and that of its managers.
Secondly, the Complainant alleged that the SIPC was delaying approvals of price increases on the company’s products. The products in question required state approval because of their status as “essential goods,” which made them subject to strict price controls. The Complainant requested an increase in the final prices because of a significant increase in the cost of pork. But its requests either went unanswered or were denied without explanation, leading the company to increase prices without the approval. The Complainant believes that the SIPC has deliberately delayed its increase approvals in order to be able to fine the company.
Thirdly, the Complainant stated that MENR and SGSO officials were delaying approvals of subsoil utilization permits. These permits should have been obtained before drilling wells to provide water for meat processing. The Complainant believed these delays were also calculated to justify fines.
Action taken: Shortly after BOC experts began to gather supporting data and details regarding the three issues, the Complainant informed the BOC that all of their complaints had been resolved by the various regulatory agencies. The price increases and permits were approved, and legal charges against Globyno were dropped.
Result achieved: All issues were resolved shortly after the BOC started its investigation. The Complainant sent a letter of thanks to the BOC, saying that its investigation and feedback were crucial in bringing the state agencies around.

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