Bribery in international business

Ukraine should boost anti-corruption reforms to meet the demands of citizens

 

26/10/2017 - Ukraine has achieved remarkable progress on anti-corruption reforms since the 2014 Revolution of Dignity. Despite these major achievements, there is a serious risk of backsliding on reforms, according to a new OECD report.

 

Over the past three years, Ukraine has adopted progressive anti-corruption legislation, created main anti-corruption institutions such as the National Anti-Corruption Bureau (NABU), Specialised Anti-Corruption Prosecution Office (SAPO), National Agency for Corruption Prevention (NACP) and Asset Recovery and Management Agency (ARMA), and advanced the civil service reform. It has opened up many data registers such as the electronic declarations of public officials and registers of beneficiary owners and introduced the effective electronic system ProZorro to prevent corruption in public procurement. Furthermore, the recently created Business Ombudsman Council (BOC) provides companies effective protection from abuses by corrupt public officials. Civil society and the international community also play a very active role in safeguarding the reforms.

 

However, the level of corruption remains high and trust in the government is corroded by regular allegations of corruption. The anti-corruption institutions, such as NABU and SAPO, are under constant counter-attack from corrupt politicians who aim to undermine the effectiveness of their investigations. The NACP,  the body that isresponsible for electronic declarations, national anti-corruption policy, party financing and other fundamental issues, remains weak and ineffective. Recent actions by the government to discourage anti-corruption activism by civil society are also alarming.

 

Recognising these challenges, the report recommends that Ukraine:

 

  • Safeguard independence and effectiveness of the NABU and SAPO;
  • Ensure effective and independent operation of the NACP;
  • Ensure effective verification of electronic asset declarations and exclude non-public sector employees, such as NGOs, from the disclosure requirements;
  • Develop and implement integrity rules for MPs;
  • Boost implementation of the civil service reform;
  • Strengthen independence and integrity of the prosecutors  and judges;
  • Establish anti-corruption courts as a part of the overall judiciary reform;
  • Ensure results in terms of stolen asset recovery;
  • Strengthen the legal basis for the functioning of the Business Ombudsman Council.

 

The report was due to include an in-depth analysis of the sector of State Owned Enterprises (SOEs) and to recommend measures to improve their integrity and compliance. This analysis has not been completed yet, mostly due to insufficient information that was provided by Ukraine to the evaluation team, but it is expected by July 2018.

 

The full report and recommendations on Ukraine is available here.

 

The report is published under the Istanbul Anti-Corruption Action Plan, initiative launched in 2003 under the Anti-Corruption Network for Eastern Europe and Central Asia (ACN), which is a part of the OECD Working Group on Bribery outreach work. More information is at www.oecd.org/corruption/acn/.

 

For further information, contact Mrs. Olga Savran, ACN Manager at the OECD’s Anti-Corruption Division at +33 1 45 24 13 81 or anti-corruption.contact@oecd.org.

 

Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.

 

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