Ukraine: Information on steps taken by the Yushchenko government to address government corruption (February 2006)

Viktor Yushchenko was inaugurated as President of Ukraine on 23 January 2005, and on 4 February 2005, Yulia Tymoshenko was approved as Prime Minister by Parliament (UK 16 Jan. 2005). A news article dated 30 January 2005 reported that President Yushchenko's government made the fight against corruption a top priority in Ukraine (BBC 30 Jan. 2005). The President also indicated that "[b]usinesses should stop paying bribes to Ukrainian officials" (ibid.). In early September 2005, President Yushchenko's Secretary of State Oleksandr Zinchenko resigned, accusing several senior government officials of "systematic corruption" (BBC 5 Sept. 2005). On 8 September 2005, "[f]ollowing a wave of resignations by senior presidential administration and other officials amid mutual recriminations of corruption, Yushchenko fired Prime Minister Yulia Timoshenko" (HRW Jan. 2006), then proceeded to fire the rest of the government (RFE/RL 8 Sept. 2005). On 22 September 2005, the Parliament approved Yushchenko's nomination of Yuri Yekhanurov as Prime Minister, after having hesitated to accept the nomination two days earlier (MosNews 22 Sept. 2005).

On 21 February 2005, the European Union (EU) and Ukraine signed an Action Plan in which Ukraine committed to "shared values of democracy, rule of law and respect for human rights" (EU 1 Dec. 2005). Priorities of the Action Plan included "[i]mproving the investment climate, through non-discriminatory, transparent and predictable business conditions, simplified administrative procedures and by the fight against corruption" (Ukraine n.d.a).

In September 2005, the Committee on the Honouring of Obligations and Commitments by Member States of the Council of Europe (Monitoring Committee) reported that it was pleased with the Ukraine's progress in adopting a Code of Administrative Justice enabling the operation of administrative courts, implementing a law on public financing of political parties and ratifying the European Agreement relating to persons participating in proceedings of the European Court of Human Rights and the Civil Law Convention on Corruption (COE 19 Sept. 2005).

In the Explanatory memorandum presented to the Parliamentary Assembly of the Council of Europe (COE), the Monitoring Committe noted that

– According to the Deputy Minister of Interior, during the first months of 2005 the Ministry [had] already compiled more than 100 protocols on corruption allegations against high-level public officials. As of 1 August 2005, 13 former heads of the regional (oblast) state administration, 17 former deputy heads of the regional state administrations, 65 former heads of the local (rayon) state administrations and their 41 deputies, 4 presidents of the regional (oblast) councils and their 6 deputies were under criminal investigation. The Ministry was publishing lists of dozens of former and current high officials, including active members of parliament, who were summoned to testify or to "give explanations" on the alleged misdeeds (mostly abuse of power, embezzlement, etc.) and then producing reports on the results of such calls. During January – June 2005 the prosecutor's office sent more than 500 criminal cases on corruption offences to the courts (19% increase over the previous year) and 600 administrative offences cases.

– New criminal charges against representatives of [former President] Leonid Kuchma's circles [were] brought almost every day. The Prosecutor General's Office [had] already questioned Mr Kuchma on two occasions.... A number of other former high officials – such as the former Minister of Interior Mr Bilokon; the former governor of the Sumy Oblast Mr Shcherban; the ex-mayor of Odessa Mr Bodelan; the former first vice-prime minister of the Crimea Mr Rayenko; the former deputy head of the Security Service Mr Satsiuk – have fled the country (in most cases to Russia). Extensive checks and investigations are also carried out by the Controlling and Inspection Service (Derzhavna Kontrolno-Revisiyna Sluzhba) and the parliament's Auditing Chamber.

– [Ukraine ratified] the Civil Law Convention on Corruption on 16 March 2005. The Ministry of Justice has also announced that it [was] preparing the ratification of the Criminal Law Convention on Corruption, which was signed by Ukraine in 1999 (ibid).

The Global Corruption Report 2006 published by Transparency International indicated that Ukraine had made the following legal and institutional changes in its struggle against corruption:

– Although delayed, plans to set up an independent body, the National Bureau of Investigation, remain[ed] a top priority. In March 2005, the government set up a working group on the development of a concept for the bureau, which will focus on fighting corruption. It remain[ed] to be seen, however, how the creation of this agency [would] complement existing anti-corruption bodies.

– In April 2005, an anti-smuggling program was approved by cabinet to address the problem of bribing to avoid customs duties and import taxes. A "single window" concept was introduced with instant dismissal for anyone reported demanding or receiving a bribe.

– In May 2005, the president issued an edict regarding the liberalization of entrepreneurial activities and state support of entrepreneurship. The aim [was] to review laws, in order to eliminate conflicting regulation, licensing and other procedures that affect business activities. These are often so confusing and uncertain, in terms of relevance, that the only way to satisfy all the requirements one is presented with is to employ an intermediary "expert" who will pay an inevitable bribe. It [was] therefore hoped that this new edict [would] help curb corruption.

– In June 2005, the government approved an action plan for 2005 for the adaptation of Ukrainian legislation to that of the European Union. This includes a series of policy commitments to uphold European norms and values in the political, social and economic spheres, all of which [were seen as] instrumental in reducing corruption.

– In July 2005, the president issued an edict regarding the dissolution of road traffic police structures, after months of frustration at the lack of obvious progress in reform and several public warnings (8 Nov. 2005, 265).

Transparency International indicated that "lasting change" will depend on whether the Yushchenko government obtains a parliamentary majority in March 2006 elections and whether "important indivuduals" will be effectively prosecuted (8 Nov. 2005, 267).

The 2006 International Narcotics Control Strategy Report 2006 (INSCR 2006), however, noted that

[d]uring the first half of 2005, law enforcement agencies (Prosecutor General's Office, Ministry of Internal Affairs, Tax Police, State Security Service) completed investigation and transferred to court 164 criminal cases on money laundering charges. While the reporting system work[ed] as intended and the financial intelligence unit (FIU) has generated cases, law enforcement authorities and prosecutors have not shown notable success in bringing those cases to successful conclusion. Observers believe[d] the key problem to be local prosecutors who close[d] money laundering investigations and cases arbitrarily, likely because of corruption (Mar. 2006, Vol. 2).

According to Transparency International, "self-censorship and concentrated ownership of the media are still a concern [in Ukraine]" (8 Nov. 2005, 267). The organization stated that a "confidential hotline for people wishing to report instances of corruption [had] also been established" (ibid.).

In November 2005 , the American Bar Association (ABA)/Central European and Eurasian Law Initiative (CEELI) launched a new program in Ukraine (ABA/CEELI n.d.) This program, which included anti-corruption activities, aimed to

assist the system of the President's Reception Offices that receive[d] complaints from citizens and process them according to the relevant laws. The existing mechanisms for processing these complaints require[d] technical, administrative, organizational, legal and professional reform. The first and current stage of the project [was] devoted to determining the most pressing needs of these offices (ibid).

Ukraine joined the Council of Europe's Group of States Against Corruption (GRECO) on 1 January 2006 (COE n.d.). By joining GRECO, Ukraine

has committed itself to participate in GRECO's mutual evaluation process. An on-site evaluation visit to Ukraine will take place in 2006 and will focus on such issues as corruption in public administration, the authorities in charge of investigating and prosecuting corruption offences, the immunity from prosecution enjoyed by certain holders of public office, preventing the use of legal persons as shields for corruption, and the measures for taking away the profits made by persons involved in corruption (ibid. 12 Jan. 2006).

The European Union (EU) granted Market Economy Status (MES) to Ukraine (EU 1 Dec. 2005). According to the Ministry of Foreign Affairs of the Ukraine, this means

that normal value and export price which is the basis for dumping margin calculation is established on the basis of the Ukrainian producing exporter's own data. In the absence of such status they are calculated on the basis of the third countries data (the EC could choose Brazil, the USA etc.) As a result, the antidumping duty rates imposed by the EU on Ukrainian imports as a rule were highest (Ukraine n.d.b)

On 10 February 2006, Yurii Lutsenko, Minister of Interior of Ukraine, declared that the Ukrainian government's "biggest mistake in the fight against corruption was allowing the passage of a law granting immunity to deputies in regional legislatures", which, according to him, "has attracted criminals to politics" (Carnegie Endowment for International Peace 10 Feb. 2006). He also noted that there had been progress made in fighting corruption, citing "the 3500 police who failed an examination and the 600 corruption cases launched against police" (ibid.). According to International Narcotics Control Strategy Report 2006 (INCSR 2006), in 2005, "[c]orruption remain[ed] a major challenge in Ukraine due to a widespread bribe-tolerant mentality, and the lack of means that law enforcement [could] use to investigate and prosecute it" (Mar. 2006, Vol.1). In March 2006, Ukrainian authorities decided to create a new National Investigation Service, primarily to combat "corruption in the top echelons of power" (Interfax News Agency 7 Mar. 2006). A news article published by BBC reported that, according to the secretary of the National Security and Defence Council (NSDC),

efforts by law enforcement agencies in fighting bribery were "awkward" and yielded few real results,... corruption continued to be one of the main factors in Ukraine which significantly influenced all the components of national security and social activities.... bribery was most widespread in Ukraine, ..."thousands and thousands" of instances of bribery were seen each year, but that court rulings ending in results were far fewer [and] ...law enforcement agencies were only making awkward attempts to punish those guilty of corrupt activity (7 Mar. 2006).

With Ukraine set to hold parliamentary elections in March 2006, Transparency International also noted that "[c]urrently, parliament is still dominated by powerful business groups who are quite prepared to reject government initiatives if they do not suit their interests" (8 Nov. 2005).

This Response was prepared after researching publicly accessible information currently available to the Research Directorate within time constraints. This Response is not, and does not purport to be, conclusive as to the merit of any particular claim for refugee protection. Please find below the list of additional sources consulted in researching this Information Request.

References

American Bar Association(ABA)/Central European and Eurasian Law Initiative (CEELI). N.d. "CEELI in Ukraine." [Accessed 27 Feb. 2006]

British Broadcasting Corporation (BBC). 7 March 2006. "Ukrainian Security Supremo Says Efforts to Fight Corruption are Weak." (BBC Monitoring Ukraine and Baltics/Factiva).
_____. 5 September 2005. "Ukraine Leader's Team 'Corrupt'." [Accessed 28 Feb. 2006]
_____. 30 January 2005. Tim Weber. "Yushchenko to 'Tackle Corruption'." [Accessed 1 March 2006]

Carnegie Endowment for International Peace. Matthew Gibson, Junior Fellow with the Russian and Eurasian Program. 10 February 2006. "Establishing the Rule of Law and Fighting Corruption." [Accessed 28 Feb. 2006]

Council of Europe (COE). 12 January 2006. "Ukraine Becomes 40th Member of the Group of States Against Corruption (GRECO)." [Accessed 28 Feb. 2006]
_____. 19 September 2005. Parliamentary Assembly. Committee on the Honouring of Obligations and Commitments by Member States of the Council of Europe (Monitoring Committee). "Honouring of Obligations and Commitments by Ukraine." (Doc. 10676) [Accessed 28 Feb. 2006]
_____. N.d. Group of States Against Corruption (GRECO). "GRECO Members States." [Accessed 28 Feb. 2006]

European Union (EU). 1 December 2005. Council of the European Union. "EU-Ukraine Summit, Kiev, 1 December 2005: Joint Statement." (C/05/337) [Accessed 28 Feb. 2006]

Human Rights Watch (HRW). January 2006. "Ukraine." Country Summary. [Accessed 28 Feb. 2006]

Interfax News Agency [Moscow, in Russian]. 7 March 2006. "Ukraine Plans to Set Up Anti-Corruption Investigation Service by July." (BBC Monitoring Ukraine and Baltics/Factiva).

International Narcotics Control Strategy Report 2006 (INSCR 2006). March 2006. "Ukraine." Volumes 1 and 2. [Accessed 28 Feb. 2006]

MosNews. 22 September 2005. "Ukrainian Parliament Approves President-Proposed Candidate Yekhanurov as PM." [Accessed 28 Feb. 2006]

Radio Free Europe/Radio Liberty (RFE/RL). 8 September 2005. Valentinas Mite. "Ukraine President Yushchenko Sacks Government in Growing Crisis." [Accessed 28 Feb. 2006]

Transparency International. 8 November 2005. "Ukraine." Global Corruption Report 2006. [Accessed 28 Feb. 2006]

United Kingdom (UK). 16 January 2005. Home Office, Immigration and Nationality Directorate (IND). Operational Guidance Note Ukraine. [Accessed 28 Feb. 2006]

Ukraine. N.d.a. Government Portal. "EU-Ukraine Action Plan." [Accessed 28 Feb. 2006]
_____. N.d.b. Ministry of Foreign Affairs of Ukraine. "Granting market economy status to Ukraine by the EU." [Accessed 28 Feb. 2006]

Additional Sources Consulted

Internet sites, included: Amnesty International (AI), Anti-Corruption Network for Transition Economies (ACN), Central Asia-Caucasus Institute, Central Intelligency Agency (CIA), The Center for Public Integrity, The EastWest Institute (EWI), Factiva, Freedom House, Interpol, Organisation for Economic Co-operation and Development (OECD), People's Daily Online, United Nations (UN).