Official statement on groundless allegations disclosed in the Decision of Kyiv’s Pechersk District Court

Official statement on groundless allegations disclosed in the Decision of Kyiv’s Pechersk District Court

We consider it necessary to publicly turn attention to the groundlessness and unlawfulness of the Kyiv’s Pechersk District Court Decision, the absurdity and baselessness of the allegations set forth in its statement of reasons.

The real purpose of the Decision is to "seize the originals of surety agreements”, entered into between the Bank and the guarantor for the loan. The purpose is set out in the resolution part of the Decision. It should be noted that the seizure of these documents will make it IMPOSSIBLE for the Bank in the future to apply to LLC "VOG TRADING" owners to fulfill their obligations under the specified surety agreements.

On April 11, 2018, the mentioned court Decision was WITHDRAWN from the Bank without execution according to the Prosecutor's Office letter!

At the same time, we consider it necessary to draw attention and to comment on the statement of reasons of the Decision, which IN NO WAY correlates with the resolution part and consists of absolutely unreasonable, unrelated assumptions and accusations regarding: domestic government bonds, the need to engage international audit companies in procurement procedures, credit lines’ provision to one of the legal entities, carrying out some procurement procedures within YY2014-2017.

Briefly in effect:

- With regard to domestic government bonds: the Bank has already provided explanations, the employee was suspended from the official duties performance, we are working with the prosecution

- With regard to the possible IT-equipment “overprice”: all procurement procedures at the Bank are carried out according to the Identical transparent algorithm! By independent experts opinions, Big Four accounting firms, which carry out the external monitoring, the Bank has taken all necessary measures to prevent corrupt practices and abusive acts, was committed to the openness and transparency principles. The Bank could confirm this by documentary evidence.

- With regard to concerns in necessity and feasibility of International audit firm engagement to support the strategic procurement by the Bank: the engagement of external advisers on strategic projects is being generally recognized, effective practice and is conditioned by the need to ensure the highest degree of transparency in procurement monitoring.

The investigator's actions assessment should be provided by the Prosecutor Office authorities.

Dear colleagues, we kindly ask you not to distribute false and improper information in regard to the Bank. We stand ready to provide you with additional explanations if necessary.

Press Service of Oschadbank