The supervisory board and the new director of the water utility have stated that the municipal enterprise is in a critical state due to the actions of previous managers

The supervisory board of «Mykolaivvodokanal», together with director Hennadii Iziumov, stated that the company is in a critical financial state, which is the result of a prolonged management crisis, ineffective management and systemic problems in the company’s operations.

Their joint statement notes that the company’s financial indicators point to a deep crisis.

It is noted that, according to the financial plan for 2026, losses could reach 667.4 million hryvnias, with the situation being exacerbated by rising electricity and fuel costs. Profitability remains negative, and accounts receivable stood at nearly 258 million hryvnias as of early April.

«These are chronic problems that have accumulated over the years and point to a deep crisis caused not only by low water supply tariffs but also by inefficient previous management, which cannot be overcome by «cosmetic» measures,» the statement reads.

The council emphasises that these problems have built up over the years and are linked not only to tariff policy but also to ineffective management. That is why, in their view, it is impossible to resolve the situation with piecemeal changes.

«In accordance with the company’s articles of association, the selection and appointment of the director takes place following an open competitive selection process conducted by the supervisory board. To attract as many candidates with relevant experience as possible, an independent recruiter was engaged, with the EU Anti-Corruption Initiative covering the cost of their services. Nineteen applications were received from candidates. Vasyl Telpis did not submit his candidacy for the position of Director General,» the document states.

Prior to the establishment of the supervisory board, responsibility for managing the utility company effectively lay with Mayor Oleksandr Sienkevych, who entered into a contract with the management.

«The company lacked proper operational reporting; there was no assessment of the work of emergency teams or oversight of the work of supervisors. In January 2026, the supervisory board found that the repair of leaks often took up to ten days, and the standard of work was low,» the document states.

It is also noted that opinion polls conducted in early 2026 confirm a high level of dissatisfaction among both Mykolaiv residents and the company’s employees. The community complains about the quality of the water supply, slow response times to incidents and insufficient supervision of staff. At the same time, employees point to outdated management approaches, a lack of resources, poor working conditions and the need for new leadership.

Risks of corruption are highlighted separately: over half of the employees surveyed stated that they would not feel safe reporting potential abuses.

«In view of these systemic issues, the supervisory board, at the CEO’s proposal, is restructuring the company and introducing mechanisms to monitor resource usage. The security department has already begun work, efforts to establish an Internal Audit Service are ongoing, and an independent audit is planned. These changes will enable the executive management to begin using the company’s resources more effectively, improve working conditions, and enhance the quality of water supply and wastewater services for the community within the limits of available resources,» the document states.

The joint statement was signed by the Chair of the Supervisory Board, Hanna Montavon, and the Director of «Mykolaivvodokanal», Hennadii Iziumov.

It should be recalled that during a meeting between water utility staff and the new CEO, Hennadii Iziumov, on 15 April, the topic of the dismissal of Technical Director Vasyl Telpis was raised. An audio recording of this conversation is in the possession of the editorial team at NikVesti.

During the meeting, the employees stated that Telpis’s dismissal came as a surprise to them, as he had worked at the water utility since the 1980s and had been acting as manager following the death of Borys Dudenko.

At the meeting, Hennadii Iziumov assured those present that he had not taken the decision to dismiss Telpis. According to him, Telpis was dismissed by the Supervisory Board.

However, the Supervisory Board of the Mykolaivvodokanal Municipal Enterprise subsequently stated that it had not taken a decision to dismiss the company’s technical director, Vasyl Telpis, as previously reported by the new CEO, Hennadii Iziumov.

The water utility has a new head: what is known about Iziumov

At the end of January 2026, a new general director of the municipal enterprise «Mykolaivvodokanal» was appointed in Mykolaiv. The post was taken by Hennadii Iziumov — the former head and chief engineer of water supply construction projects at the municipal enterprise «Mariupolvodokanal».

His appointment followed a competition in which 19 candidates took part. Prior to this, the company was headed by Borys Dudenko, who had managed the water utility since 2016 and died on 15 October 2025 following a long illness.

During the selection process, Hennadii Iziumov presented a plan for his first 100 days, which included assessing the company’s current state, stabilising operational processes, strengthening management discipline, establishing cooperation with the supervisory board and the city authorities, and preparing a medium-term development strategy.

Also in February, a list of performance indicators was approved for the Mykolaivvodokanal company, against which the company’s performance will be assessed in future.