For
example, the major advantage of the bill – the clause that
introduces liability for false information provided in income
declarations becomes completely useless ones you realize that those
at fault would get away with just a penalty of Hr 425. Obviously,
corrupt officials would prefer to pay that in exchange of 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 the 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 an access to the tax declarations of the officials,
controls fiscal payments and has all 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 interests.
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. For
this norm not to remain declarative it is extremely important to
develop the 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 a law.
Risks
are also embedded in the norm regulating criminal liability of legal
entities. The bill envisages a range of sanctions to the discretion
of judges: either a penalty of Hr 2,550 – 6,800 or correctional
labor for the period of one year, or arrest for the period of three
months, or restraint of personal freedom for the period of two years
with deprivation of the right to occupy certain positions or conduct
certain activities for the period of two years.
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 at:
http://ti-ukraine.org/what-we-do/research/2882.html
Oleksii
Khmara is the Executive Director of Transparency International
Ukraine
