Ukraine tries to prove that is serious about corruption

By bne IntelliNews May 20, 2015

bne IntelliNews -

 

Ukraine is trying to publicise its efforts to clamp down on corruption, as a crucial deadline looms for the International Monetary Fund (IMF) to review conditions for extending billions of dollars in credits.

In the south-eastern city of Zaporizhia, the head of the local anti-corruption committee and a councillor have been detained on suspicion of extorting bribes, Interior Minister Arsen Avakov said on May 20.

"The head of the anti-corruption committee decided to show how to ‘fight corruption’ in practice," Avakov wrote on his Facebook page, without revealing the names of the suspects.

The detained official and a local Communist council deputy had demanded the mayor of the  city pay them $10,000 to keep his job, Avakov said. The pair were caught red-handed by the state’s economic crimes task force as they received the first part of the money, and now face between five and 10 years in jail.

The incident demonstrates government efforts to halt endemic corruption in Ukraine, which is a condition of the International Monetary Fund (IMF) for granting the country $17.5bn in urgently needed credits. 

In mid-June the IMF is due to review Ukraine’s track record in fighting corruption since the bailout was agreed in March. With the national economy collapsing amid tensions with Russia and the conflict in Ukraine’s eastern regions, the government under Prime Minister Arseny Yatsenyuk has been promoting its efforts to stamp out graft.

The public drive began in March with the arrest before TV cameras of the former head of Ukraine's emergency services ministry and his deputy during a cabinet meeting.
However, accusations of complicity in corruption have also been levelled at the prime minister and other top government officials. 

The parliament in Kyiv is investigating allegations by the ex-head of the state financial inspectorate that Yatsenyuk and his entire cabinet were aware of embezzlement schemes at state-owned companies that cost the country at least $150mn under their watch. Mykola Gordienko claims he was suspended from his position of top state auditor after detailing the fraud and was finally fired on April 4.

The mud-slinging has not improved Ukraine’s image as it tries to raise $40bn in credits and restructured loans to repay the country’s debts and rebuild its economy.

The world is growing weary of hearing about Ukraine’s problems, former president Viktor Yushchenko said in the Sevodnya newspaper on May 20, comparing his country to "a troublesome fly" in the world arena. "We are not even number two or number three on the agenda," Yushchenko said.

Related Articles

Ukraine's largest PrivatBank faces down nationalisation fears

Graham Stack in Kyiv - Ukraine's largest lender PrivatBank has survived a stormy week of speculation over its future, but there are larger rocks ahead, with some market participants anticipating the ... more

bne:Chart - Russia begins to steady the ship according to latest Despair Index

Henry Kirby in London - Ukraine and Russia’s latest “Despair Index” scores suggest that the two struggling economies could finally be turning the corner, following nearly two years of steady ... more

Austria's Erste rides CEE recovery to swing to profit in Jan-Sep

bne IntelliNews - Erste Group Bank saw the continuing economic recovery across Central and Eastern Europe push its January-September financial results back into net profit of €764.2mn, the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss