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About us Press-room Articles Ukraine continues fight against corruption.

Ukraine continues fight against corruption.

24.06.2011

Corruption is considered to be a serious problem in Ukraine. Ukraine ranks 134th in Transparency International Corruption list for 2010. Unfortunately, Ukraine obtained 2.2 points out of 10 points in the rating. Ukraine was placed in a row with such countries as Zimbabwe, Togo, Sierra-Leone, Philippines, Nigeria, Honduras, Bangladesh, and Azerbaijan. Ukrainian society has created conditions whereby corruption can flourish.

 

The authorities of Ukraine acknowledged that corruption is a priority issue requiring comprehensive and serious countermeasures. They also acknowledged that it is necessary to establish the legal, institutional and economic conditions in order to activate anti-corruption programmes and to make the activity of state bodies transparent. Ukraine fights corruption and cooperates with International Organizations in sphere of prevention and counteraction of corruption.

 

The fight against corruption in Ukraine

 

In order to implement anti-corruption measures, the Supreme Council of Ukraine (Parliament) adopted in the 2nd reading the "Anti-Corruption package of laws" offered by the President of Ukraine. The "Anti-corruption package of laws" consisted of the three following laws: the Law on the Responsibility of Legal Entities for Corruption Offences, the Law on Amending Certain Legal Acts Regarding Responsibility for Corruption Offences and the Law on the Principles of Prevention and Counteraction of Corruption.

 

Despite the fact that the adoption of the "Anti-corruption package of laws" by the Supreme Council of Ukraine was an important step in reform of the national fight system against corruption, the mentioned above Laws were considered void due to the Law of Ukraine on Recognition of Certain Acts of Ukraine on Prevention and Counteraction of Corruption void N 2808-VI dd. 21.12.2010. This Law entered into force.

 

Activity of the Supreme Council of Ukraine in the sphere of fight against corruption in our country roused the Ukrainian community and organization "Youth against corruption" of Kharkov region in particular (hereinafter referred to as the "Organization"). On 24.01.2011 the Organization submitted a letter N -01-24/01 to the Ministry of Justice of Ukraine with the request to clarify the situation that was established due to the adoption of the Law of Ukraine on Recognition of Certain Acts of Ukraine on Prevention and Counteraction of Corruption void N 2808-VI dd. 21.12.2010. The Ministry of Justice of Ukraine considered the letter of the Organization and issued a Letter dd. 28.02.2011 N 1877-0-26-11-22. The Ministry of Justice of Ukraine informed the following. The United Nations Convention against Corruption (UNCAC) dd. 31.10.2003 was ratified by Ukraine and entered into force on 01.01.2010. The "Anti-corruption package of laws" was put into operation on 01.01.2011 but was considered void shortly after that on 05.01.2011. The Law of Ukraine on Fight against Corruption was also considered void on 05.01.2011.

 

On 07.04.2011 the Supreme Council of Ukraine adopted the Act of Ukraine on Amending Certain Legal Acts of Ukraine Regarding Responsibility for Corruption Offences N 3207-VI and it enters into force on 01.07.2011. This Act of Ukraine amended the Criminal Procedure Code of Ukraine, the Criminal Code of Ukraine and the Code of Ukraine on Administrative Offences.

 

In addition the Supreme Council of Ukraine adopted the Act of Ukraine on the Principles of Prevention and Counteraction of Corruption dd. 07.04.2011 3206-VI (hereinafter referred to as the "Act of Ukraine") and it enters into force on 01.07.2011. Declaration on property, income, expenses and financial obligations is enclosed to the Act of Ukraine.

 

The Act of Ukraine determines main principles of prevention and counteraction of corruption in public and private spheres, principles of indemnification in case of corruption offences, renewal of the infringed rights, freedom, interests of individuals, and the rights and interests of legal entities and the state.

 

The Article 4 of the Act of Ukraine specifies the list of individuals who might be the subject to corruption offences and is obliged to submit the Declaration on property, income, expenses and financial obligations annually till the 1st of April.

 

The Article 12 of the Act of Ukraine specifies that the President of Ukraine, the Head of the Supreme Council of Ukraine, public deputies, the Prime Minister of Ukraine, members of Cabinet of Ministers, the Heads and judges of the Constitutional Court of Ukraine, the Heads and judges of the Supreme Court of Ukraine, the heads and judges of the high specialized courts of Ukraine, the Prosecutor General of Ukraine and his assistants, the Head of the National Bank of Ukraine, the Heads of the Clearing House of Ukraine, the Heads and members of the High institution of justice, the members of the Central election committee, the heads and members of the High qualification committee of judges of Ukraine, the heads of other bodies of state authority and their assistants, the members of collegiate bodies of state authority (committees, councils), the heads of local bodies and their assistants are also obliged to submit Declaration on property, income, expenses and financial obligations annually till the 1st of April and the information stated in the Declaration is subject to publication in official print of the corresponding state body and local government. The Article enters into force on 01.01.2012.

 

The Article 7 of the Act of Ukraine limits the activity of individuals that are specified in the Article 4 of the Act of Ukraine in the sphere of having two jobs at a time and combining different kinds of activity.

 

Within the framework of realization of the Article 15 of the Act of Ukraine which is entitled "The Procedure of holding anti-corruption expertise of legal acts" the Ministry of Justice performs the anti-corruption expertise of legal acts. The Procedure of holding anti-corruption expertise of legal acts was worked out with an aim to reveal in draft laws of Ukraine, other legal acts principles that facilitate or can facilitate as creation of conditions for corruption actions.

 

Public anti-corruption expertise of legal acts might be initiated by individuals, union of citizens, legal entity.

 

The innovation of the Act of Ukraine is that the individuals who pretend to occupy position that is connected with fulfillment of functions of the state and local government should pass special checking (Article 11 of the Law of Ukraine enters into force on 01.01.2012).

 

 

Requirements for Ukrainian business partners

 

 It is important to be sure that Ukrainian business partners meet requirements provided by the Act of Ukraine if you make contracts with them.

 

It is necessary to focus on the following points. Ukrainian partners should not benefit their position in order to receive illegal profit; assist in performing activity, reception of grants, credits, privileges; assist in making contracts by natural persons or legal entities; provide priority to natural persons or legal entities in connection with preparation of projects, decision-making, issuing of statutory acts, confirmation (adjustment) of conclusions; perform other payable or entrepreneurial activity directly or mediately if alter is not foreseen by legislation; enter the membership of a state body or supervisory board of an enterprise or organization that gains profit; refuse to provide information that is foreseen by legislation, provide inadequate information or just part of required information.

 

Such requirements are applied if a Ukrainian partner is an individual who constantly or temporarily holds a managing position or an individual who is technically empowered to manage a legal entity. These requirements are also applied towards a natural person-entrepreneur.

 

Hereby local government institutions are strengthened and they can deliver services in a transparent and accountable way.

 

It is significant that individuals and legal entities are not allowed to finance state bodies and local government. It is also forbidden to provide financial and intangible help, to perform work free of charge, to render services, to transfer means and other property. The individuals specified in the Article 4 of the Act of Ukraine are forbidden to accept gifts in case of performing state functions and functions of the local government. But such individuals may accept gifts which correspond to the standard hospitality image, but gift cost should not exceed the amount of 50% of one minimum wages, that is fixed on the date when the present was accepted. The gift cost of the presents accepted during one year from one individual should not exceed the amount of one minimum wages that was fixed on the 1st of January of the current year.

 

Pursuant to the Article 22 of the State Budget for 2011 Act of Ukraine dd. 23.12.2010 2857 - VI, from the 1st of April the amount of minimum wages is UAH 960 (nine hundred sixty), from the 1st of October - UAH 985 (nine hundred eighty five), from the 1st of December - UAH 1004 (one thousand and four).

 

The gifts that were accepted are the state or municipal property and should be transferred to a state body, an organization or other legal entity in order that is fixed by the Cabinet of Ministers of Ukraine.

 

Information transparency

 

There are several laws that regulate information availability to the public. Pursuant to the Article 16 of the Act, it is forbidden to refuse individuals and legal entities to provide information that should be provided in accordance with Ukrainian legislation. Also it is forbidden to provide undue, false or incomplete information that should be provided according to the Ukrainian legislation. Information regarding the amount, kind of welfare aid and other kind of help that is rendered to individuals and legal entities or is received from them by the individuals specified in the Article 4 of the Act; the amount, kind of remuneration of labor of individuals specified in the Article 4 of the Act, and information regarding the gifts that were received by these individuals must not be treated as information with restricted access.

 

Illegal regulations and deals

 

Pursuant to the Article 24 of the Act any regulations, decisions that were made as a result of corruption actions might be repealed by the authorized body or officials. Privies, community, legal entities, prosecutor, state bodies or bodies of local government should file a claim in order to adjudge Laws and decisions illegal.

 

Contracts that were made as a result of corruption actions are to be acknowledged null and void.

 

Conclusions

 

Ukraine actively fights against corruption and aims to respond international standards.

 

We suggest that KYP (Know Your Partner) scheme should be applied to all business relations within Ukraine in order to be sure that your business partner acts in compliance with the Act.

 

The article was prepared by Olga Danilishyna.

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