But paradoxically, a closer look at it reveals a range of corruption risks that would neutralize all the positive effects should it be approved in its current edition.
For example, the major advantage of the bill – the clause that introduces liability for false information provided in income declarations — becomes useless once it is realized that those at fault would get away with just a penalty of Hr 425.
Obviously, corrupt officials would prefer to pay that in exchange for hiding millions of hryvnias. Transparency International Ukraine suggests that the penalty should be increased to Hr 5,100 – 17,000.
In addition, the function of financial control over declarations, which is now assigned to the special subdivisions of public bodies, will be delegated to the Ministry of Income and Fees. Public experts state that it is a positive innovation, because the Ministry of Income has access to the tax declarations of the officials, controls fiscal payments and has all the necessary powers and resources for this control.
But unfortunately anti-corruption subdivisions of public bodies cannot effectively control the officials’ declarations, since these subdivisions depend on the umbrella authorities. It is an obvious conflict of interest.
The officials of the Ministry of Income are subject to declaration themselves, so the following question arises: How will this conflict be settled?
The analysts of Transparency International Ukraine stress the fact that the methods to control the declarations are yet to be devised.
Also, it is extremely important to develop a procedure for monitoring performance and we should speed the procedure of its creation by setting it though a Cabinet of Ministers decree, as opposed to law.
Risks are also embedded in the norms that regulate criminal liability of legal entities.
The bill envisages a range of sanctions at the discretion of judges: either a penalty of Hr 2,550 – 6,800 or correctional labor for a year, arrest for three months or restraints on personal freedom for two years along with a prohibition from occupying certain jobs during such time.
This is problematic because such an approach will establish excessive discretionary powers of judges. Thus to avoid the corruption risks, they should reduce the range of types of liabilities by increasing the amount of penalties and adjusting other norms.
The results of Transparency International’s analysis of this bill were sent to the Ministry of Justice, the author of the bill, and the Cabinet of Ministers of Ukraine, as well as provided to the delegation experts of the European Committee who worked in Kyiv in early September. We hope they act on it.
The detailed analytical report can be found here.
Oleksii Khmara is the executive director of Transparency International Ukraine
