In an attempt to lighten punishment for economic crimes and improve the domestic investment climate, President Viktor Yanukovych’s administration is pushing legislation to decriminalize certain violations by individuals and businesses.
Discussions are also under way to apply the initiative to politicians, starting with opposition figures currently facing prison time. The effort is seen as part of a face-saving exit for Yanukovych, who stands accused by the European Union of trying to sideline political rivals ahead of next year’s parliamentary election.
But some warn that softening punishment for economic crimes could weaken law enforcers’ ability to crack down on widespread corruption.
The draft law was adopted in its first reading in parliament on Oct. 6. Alterations may be made ahead of a second reading, after which, if it passes, it would then await the president’s signature.
Andriy Portnov, head of the judiciary administration department in the presidential administration, has spearheaded the much-anticipated changes to Ukraine’s criminal code and criminal procedural code.
The draft prepared by Portnov on behalf of the president does not provide leniency for political officials in government.
Some economic and policy analysts predict that the so-called decriminalization plans will have little impact on the nation’s difficult investment climate.
It replaces prison time with fines for businesses and citizens that commit economic crimes, such as fictitious bankruptcy, illegal use of foreign currency bank accounts and smuggling (except contraband drugs and radioactive elements).
It is envisioned that fines will be set by a court, and calibrated to cover losses incurred to the state, along with a possible extra penalty.
The changes, according to Portnov, also offer to step back from widespread use of pre-trial detention of suspects and to introduce a more readily used bail system.
The aim, Portnov said, decrease abuse by officials who seek bribes and kickbacks through practices such as shakedowns.
“Now courts have more room for maneuver in establishing whether to order a fine or a jail punishment for an economic violation,” Portnov said. With the legislative changes, he said, courts will find it harder to “threaten anyone with a jail sentence.”
Oleksiy Baganets, a 32-year veteran prosecutor and currently lawyer for jailed ex-Interior Minister Yuriy Lutsenko, generally praised the initiative. But he fears that, given the widespread corruption in Ukraine, such legislation could actually backfire.
“I do not think that it will revive the economy and decrease crime numbers. Rather, it could play into the hands of criminals and corrupt officials,” Baganets said.
Knowing that they will no longer face jail time, corrupt officials and citizens could seek to steal and cheat more, building up a cash reserve to easily cover fines and payoffs in case they are caught on some of their illegal economic activities. In the case of contraband, corruption could surge, Baganets added.
Some economic and policy analysts predict that the so-called decriminalization plans will have little impact on the nation’s difficult investment climate.
The more effective way of tackling this colossal problem, they say, is to cut bureaucratic burdens, secure property rights, boost salaries for underpaid law enforcement officials who earn much of their income from bribes and install a fair and independent judicial system.
Discussions are also under way to tweak the legislative initiative so as to save opposition leaders, namely Tymoshenko and Lutsenko, from prison time in connection with charges they currently face. Both remain jailed, despite not being convicted of any crime.
Yanukovych reportedly told the EU officials in closed-door talks in recent weeks that he could push through legislation that decriminalizes penalties for the charges that she [Tymoshenko] faces
Scenarios that free Tymoshenko and Lutsenko could offer a face-saving exit for Yanukovych and help him meet the demands of European Union officials, who accuse the Ukrainian president of politically persecuting opponents and trying to sideline them from next year’s parliamentary elections.
Portnov stressed that his draft bill does not include changes that would exonerate Tymoshenko and others for political decisions made, but rather prison sentences with fines.
But Yanukovych reportedly told the EU officials in closed-door talks in recent weeks that he could push through legislation that decriminalizes penalties for the charges that she faces –abuse of office as prime minister in reaching a 2009 gas deal with Russia.
Tymoshenko, who faces up to 10 years in jail, continues to profess her innocence and insists that she would neither ask Yanukovych for amnesty nor accept a decriminalization scenario. Court hearings resume on Oct. 11.
Kyiv Post staff writer Yuriy Onyshkiv can be reached at [email protected].
