Vadym Melnyk, the former head of Ukraine’s State Fiscal Service, was elected to lead the newly-created Bureau of Economic Security by the Cabinet of Ministers, Ukrainian news outlet Ukrainska Pravda reported on Aug. 20, citing their sources. Several other news outlets confirmed it.
A total of 48 people were permitted to take part in the competition, while 11 were dismissed, including ex-Finance Minister Oleksandr Danyliuk. The dismissal led to a scandal, with Danyliuk punching ex-Economy Minister and head of the selection committee Timofiy Mylovanov, who justified Danyliuk’s dismissal.
Melnyk, 49, was the head of the State Fiscal Service since December 2020. However, the government decided to split it into separate tax and customs services.
The Bureau of Economic Security took over the functions of its predecessor, with Melnyk at its head since Aug. 20.
The new agency was created in May. The law on establishing the bureau was passed by parliament in January and signed by Zelensky in March.
The Bureau of Economic Security will investigate economic and white-collar crimes other than those within the jurisdiction of the National Anti-Corruption Bureau of Ukraine. These crimes include tax evasion.
With 4,000 new employees likely to work in two headquarters in Kyiv, the new government agency will also aim to tackle the rampant shadow economy in Ukraine.
Ukraine’s shadow economy has grown to 30 percent of its gross domestic product in 2020, an increase from 27 percent in 2019, according to a report published by Ukraine’s Economy Ministry on June 25.
With a GDP of $151 billion in 2020, the shadow economy represents over $45 billion in lost revenue to the state.
