"United Mining and Chemical Company" | News | Financial ‘genius” or where the money for VMMP employees’ paycheck disappeared

Financial ‘genius” or where the money for VMMP employees’ paycheck disappeared
Financial ‘genius” or where the money for VMMP employees’ paycheck disappeared

08.07.2020

Dear reader, it has been less than three months of the genius and talented management of Peter Davis team and JSC UMCC already failed to find money to pay wages to its employees. Truth be told, not to all employees. The company fell short of UAH 20 million to pay wages to the most heroic, most impactful plant of the company, which up until now was the company’s biggest contributor sharing its earnings with Irshansk and the office employees of JSC UMCC. It requires some talent to cause a fallout with the bread winners. Yesterday, every employee of Vilnohirsk MMP went home with empty pockets and silly excuses of Peter Davis’s deputy Artur Somov that “there is no money, but you hang in there”. Peter, by the way, took an unpaid leave for the period of wage payment. He doesn’t like these kinds of scandals. It’s entirely different from reading glowing posts about himself.
 
There have been quite a few things PR specialists of Peter and Sennychenko have come up with in an attempt to rid the team of “professionals” of the shameful label of losers. First, the clients of the former managers were to blame – they refused to pay after Peter terminated contracts with them and shut down VMMP on May 16. Then, they claimed that the very same ‘former managers’ were throwing sand in the wheels every step of the way… Understandably, bad workmen often blame their failures on others… Well, we will not allow shifting the blame and will help Peter find a clear understanding of the reality. We will analyze the fuck-up with the wage payment for him, how he was reaching it purposefully and how he found himself in a zugzwang as a result.
 
Let’s go back to February 25. Sennychenko-Ihnatovskiy appoint the now dismissed Mykhailo Makarov as the acting Chairman of the Board at JSC UMCC. Peter Davis and Tetiana Gogenko “advise” the new boss on how and to whom, without corruption, to sell products ‘the right way’ and how to ‘improve’ company’s performance. At the time, when Makarov and his ‘advisors’ joined the company, there was over UAH 293 million and $20 million on the accounts of UMCC. That was enough for the company to work seamlessly until November at its current pace. However, either the amount blurred their vision or there were other orders from the Fund’s curators what to do with the money, the managers let their guard down and were doing whatever, but dealing with the issues of the future earnings of the company. Peter himself was doing everything possible to bring the moment of cash shortage closer.
 
For example, he decided that he extremely needed a whole security team, an army of IT specialists, a battalion of guards and a department of PR specialists, and also a whole department of administrative managers to move the papers from one place to another. With these people, he was ready to improve UMCC’s performance. And when they looked around, it turned out that the staff increased from 32 to 76 people, and the payroll grew from UAH 1.2 million per month to as high as UAH 5 million. All of this was approved by Sennychenko-Ihnatovskiy. It wasn’t somebody’s own money, but public money, after all.
 
Logically, on July 7, there was only UAH 10 million left on UMCC’s accounts, while Vilnohirsk needs UAH 20 million. That is a big financial hole, a shortage that an experienced financial specialist had to foresee. That shortage made it impossible to pay wages to the VMMP employees. And those employees went home to their families with sad faces, recollecting all the victorious releases of the company in not so nice words.

Peter, if you only spend and don’t earn anything, the money tends to run out. You don’t have to go to Harvard, Oxford or Cambridge to learn that. Even a five-year old, who gets his money for the candy from his mom knows it.


Peter began looking into new contracts only in June, and that is a different story that deserves a round of applause. He concluded the first contracts with the companies of Vitaliy Kuchuk, a Dnipropetrovsk thug from the 1990s. Kuchuk plundered VMMP before Dmytro Firtash took over the plants in 2004. Peter, good and proper, sold the products to these companies at prices 7-30% lower than the market and called Kuchuk a “vetted” buyer for the whole country to hear. That caused some laughter in the audience…
 
He concluded his second contract with Zaporizhzhia Titanium & Magnesium Combine, which is nearly bankrupt, and granted it a 40-day payment deferral after the delivery. It was Makarov, who re-signed the contract with the US-based Chemours with a 175-day payment deferral. UMCC continues to perform this contract. How do you have a fallout with such a respectable company? And why?
With these kinds of deferrals and concessions, and also with the “victories”, Vilnohirsk employees will be lucky to get their paychecks by the New Year. Well done, Peter!


P.S. There is a manager named Viktor Busko, who has a nickname Busya. He was also very confident that he effectively managed Elektrovazhmash. Curators Sennychenko-Ihnatovskiy instilled that confidence in him. In June, however, it turned out that the strategic plant is bankrupt, and hasn’t been able to pay its employees their wages for two months. So, prosecutors visited Busya, and Busya asked to be removed from his position of an “effective” manager.
Peter, maybe it is time for you to go back to London? While the borders are still open. Because, you know, coronavirus, second wave… you might not have enough time to do it later.