Saturday December 6, 2014
Ukraine’s new Finance Minister Natalie Jaresko, a former US State Department officer who was granted Ukrainian citizenship only this week, headed a US government-funded investment project for Ukraine that involved substantial insider dealings, including $1 million-plus fees to a management company that she also controlled.
Jaresko served as president and chief executive officer of Western NIS Enterprise Fund (WNISEF), which was created by the US Agency for International Development (US AID) with $150 million to spur business activity in Ukraine. She also was cofounder and managing partner of Horizon Capital which managed WNISEF’s investments at a rate of 2 to 2.5 percent of committed capital, fees exceeding $1 million in recent years, according to WNISEF’s 2012 annual report.
The growth of that insider dealing at the US-taxpayer-funded WNISEF is further underscored by the number of paragraphs committed to listing the “related party transactions,” i.e., potential conflicts of interest, between an early annual report from 2003 and the one a decade later.
In the 2003 report, the “related party transactions” were summed up in two paragraphs, with the major item a $189,700 payment to a struggling computer management company where WNISEF had an investment.