ORGANISATION FOR ECONOMIC CO-OPERATION …

1 ORGANISATION FOR ECONOMIC CO-OPERATION AND development anti - corruption network FOR EASTERN EUROPE AND CENTRAL ASIA anti - corruption Reforms in UKRAINE Round 3 Monitoring of the Istanbul anti - corruption Action Plan The report was adopted at the ACN meeting on 24 March 2015 at the OECD in Paris. 2 About the OECD The OECD is a forum in which governments compare and exchange policy experiences, identify good practices in light of emerging challenges, and promote decisions and recommendations to produce better policies for better lives. The OECD s mission is to promote policies that improve ECONOMIC and social well-being of people around the world.

2 Find out more at About the anti - corruption network for Eastern Europe and Central Asia Established in 1998, the main objective of the anti - corruption network for Eastern Europe and Central Asia (ACN) is to support its member countries in their efforts to prevent and fight corruption . It provides a regional forum for the promotion of anti - corruption activities, the exchange of information, elaboration of best practices and donor coordination via regional meetings and seminars, peer-learning programmes, and thematic projects. ACN also serves as the home for the Istanbul anti - corruption Action Plan. Find out more at About the Istanbul anti - corruption Action Plan The Istanbul anti - corruption Action Plan is a sub-regional peer-review programme launched in 2003 in the framework of the ACN.

3 It supports anti - corruption reforms in Armenia, Azerbaijan, Georgia, the Kyrgyz Republic, Kazakhstan, Mongolia, Tajikistan, Ukraine and Uzbekistan through country reviews and continuous monitoring of participating countries implementation of recommendations to assist in the implementation of the UN Convention against corruption (UNCAC) and other international standards and best practice. Find out more at This report is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries.

4 This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. OECD 2015 3 Table of contents Executive Summary .. 5 anti - corruption 5 Criminalization of 5 Prevention of corruption .. 6 Third round of monitoring .. 8 Country background information .. 10 Acronyms .. 15 I. anti - corruption policy .. 17 Political will to fight corruption , anti - corruption policy documents ..17 corruption surveys ..27 Public participation in anti - corruption policy work, raising awareness and public education.

5 30 Specialised anti - corruption policy and co-ordination institution ..34 II. Criminalisation of corruption .. 40 Offences and elements of offence ..40 Responsibility of legal persons and money laundering ..50 Definition of public officials ..56 Sanctions, confiscation, immunities and statute of limitations ..58 International CO-OPERATION and mutual legal assistance ..65 Application, interpretation and procedure ..68 Specialised anti - corruption law-enforcement bodies ..80 III. Prevention of corruption .. 86 Integrity of public service ..86 Legal framework for integrity in civil service .. 87 Conflict of interest regulation .. 97 Asset declarations.

6 103 Code of ethics .. 111 Reporting and whistle-blowers .. 113 Internal units for disciplinary measures and conflict of interest .. 115 Promoting transparency and reducing discretion in public administration .. 117 Public financial control and audit .. 122 Public procurement .. 130 Access to information .. 141 Political corruption .. 150 Integrity in the judiciary .. 162 Private sector .. 176 Summary 184 Annexes .. 185 1. Selected legal acts of Ukraine .. 185 Provisions of Criminal Code of 185 Provisions of Code of Administrative Offences of Ukraine .. 200 4 Law on the National anti - corruption Bureau of Ukraine .. 204 Law on Prevention of corruption .

7 222 2. Sanctions for main corruption criminal offences .. 255 3. Statistics on corruption offences .. 257 Tables Table 1. Ukraine in 2013 Global corruption Barometer _____ 12 Table 2. corruption perception in Ukraine by institutions, 2013 Global corruption Barometer _____ 12 Table 3. corruption experience by public sectors, 2013 Global corruption Barometer _____ 13 Table 4. Reasons for corruption , 2013 Global corruption Barometer _____ 13 Table 5. Civic activism in fighting corruption , 2013 Global corruption Barometer _____ 13 Table 6. corruption experience, 2013 Global corruption Barometer _____ 13 Table 7. corruption reporting, 2013 Global corruption Barometer _____ 13 Table 8.

8 Ukraine in international governance and doing business ratings _____ 14 Table 9. Sanctions for ECONOMIC crimes _____ 46 Table 10. Statute of limitations of three and five years for corruption offences_____ 47 Table 11. Number of judges indicted for corruption _____ 63 Table 12. Prosecution of public officials for corruption in 2013-2014 _____ 73 Table 13. Statistics on civil service _____ 93 Table 14. Statistics on procurement-related complaints and their review _____ 137 Table 15. Statistics on administrative sanctions for procurement-related offences _____ 137 Table 16. Statistics on processing of information requests _____ 147 Table 17. Level of funding of the judicial system _____ 164 Table 18.

9 Judicial remuneration in Ukraine _____ 165 Table 19. Number of dismissals of judges _____ 169 Figures Figure 1. How wide spread is corruption in different areas .. 14 Figure 2. Volume of different procurement methods used in 131 Figure 3. Statistics on the number of information requests received by public authorities .. 146 Boxes Box 1. Examples of corrupt schemes in Ukraine affecting business sector .. 182 5 Executive Summary Dramatic events in the winter of 2013-2014 in Ukraine significantly effected country s anti - corruption policy. The kleptocratic regime of ex-president Viktor Yanukovych was toppled by the popular protests.

10 Widespread corruption was one of the main reasons that instigated mass demonstrations. The new, post-Maidan administration plegded to eradicate corruption , but has so far failed to deliver convincing results going beynd revision of the legal framework. Although there are promising signs, notably with regard to radical overhaul of anti - corruption institutional landscape. The third round monitoring report on Ukraine takes stock of the developments in the country since previous round of the Istanbul Action Plan monitoring (from beginning of 2011) with special focus on post-Maidan reforms.