The National Agency on Corruption Prevention (NACP) has processed the Law of Ukraine No. 3374-X dated September 5, 2023, "On Amendments to Certain Laws of Ukraine on Determining the Procedure for Submitting Declarations of Persons Authorized to Perform State or Local Government Functions under Martial Law" (Draft Law No. 9534, hereinafter the Law). The document will soon be reconsidered by Parliament after the President of Ukraine vetoed it and provided a number of his comments.
The NACP supports the reintroduction of asset declarations and the position expressed by the President of Ukraine on ensuring the openness of public officials' declarations. At the same time, having studied the provisions of the Law and the proposals submitted by the President, the National Agency draws attention to the risks contained in the provisions of the document.
1. The number of declarants will decrease by approximately 50,000 people (to 750,000). Amendments to Art. 1 of the Law of Ukraine "On Prevention of Corruption" and the definition of the term "official of a legal entity under public law" do not take into account persons holding positions of heads of structural, including separate subdivisions of legal entities under public law, and their deputies. They will not be covered by the Law of Ukraine "On Prevention of Corruption" at all. At the same time, there is a wide range of corruption risks in the activities of such persons. It is the heads of various levels of state-owned enterprises and institutions who are the objects of constant, high-profile investigations by the National Anti-Corruption Bureau (NABU).
2. In addition to the obligation to disclose declarations, the law also provides for the possibility of withdrawing declarations from public access. Thus, the NACP will be able to withdraw declarations from public access on the basis of a written submission from the head (deputy head) of the state body in which the declarant serves or works. The Law grants the right to make such a submission only to heads (deputy heads) of state bodies, which effectively limits the ability of heads of local governments and other legal entities of public law (institutions, establishments, and organizations) to submit to the NACP lists of persons whose declarations are not subject to disclosure during the war. At the same time, the issue of removing declarations of persons who do not have managers or dismissed employees, as well as the possibility of removing a declaration at the initiative of the declarant who meets the criteria set out in the Law, is not regulated at all. This approach discriminates against declarants and may put them and their families in danger.
3. It does not simplify, but rather complicates the declaration process for the declarant. A number of proposed changes cause additional difficulties in filling out the declaration and understanding all aspects. This applies, for example, to changes that eliminate the need to declare account numbers but in fact leave the need to declare the persons who have the right to manage the accounts and the persons who opened accounts in the name of the declarant.
To address these risks, the NACP has developed a number of proposals for amendments to the Law of Ukraine "On Prevention of Corruption" that will improve anti-corruption mechanisms and ensure legal certainty of the relevant provisions.
Letter to the President on Initiating Amendments to Draft Law No. 9534
Comparative table to draft law No. 9534
Law on renewal of declarations reduces the number of declarants by 50 thousand. NACP appeals to the President with proposals for amendments
19.09.2023

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