NACP and defense sector institutions step up efforts to prevent and combat corruption

19.07.2023

The National Agency on Corruption Prevention (NACP) and defense sector institutions are stepping up their efforts to build integrity and combat corruption. This was discussed at the press conference "How to Implement Anti-Corruption Policy in the Defense Sector During the War?" held on July 19, 2023. According to NACP Head Oleksandr Novikov, the National Agency, in addition to the priority area of preventing corruption in the defense sector, has begun to work on developing an integrity policy in accordance with NATO standards. Recently, the Presidential Decree appointed Iaroslav Liubchenko, Deputy Head of the NACP, as the National Coordinator for Ukraine-NATO Cooperation in Building Integrity. "Corruption in Russia is our ally, and corruption in Ukraine is our enemy. If we overcome corruption in the security and defense forces, we will definitely defeat the external enemy as soon as possible. Currently, the NACP is a facilitator in building integrity in the security sector, and integrity is not only a criterion of ethics but also of efficiency," said the NACP Head. Mr. Novikov said that the National Agency has launched a structural unit directly involved in building integrity in the security and defense sectors. It will cooperate with all security and defense agencies, including the Ministry of Defense of Ukraine, the Ministry of Strategic Industries, and Ukroboronprom (JSC "Ukrainian Defense Industry"), to build a compliance system and implement the measures of the State Anti-Corruption Program for 2023-2025. "The NACP has prepared an effective treatment against corruption: the Anti-Corruption Strategy and the State Anti-Corruption Program for its implementation, where the defense sector is recognized as a priority area. The program provides for more than 50 measures, and the Independent Anti-Corruption Commission (NAKO) analyzed 35 of them," said the NACP Head. Minister of Defense of Ukraine Oleksii Reznikov noted that corruption is one of the components that destroys the trust of Western partners and prevents Ukraine from effectively using its defense potential. Therefore, zero tolerance for corruption is not just a slogan but an important element of our survival. "There are three main areas the Ministry is working on. The first one relates to structural changes to prevent corruption risks by distributing functions and powers. The most obvious example is the continuation of procurement reform. We are currently on the way to transferring the procurement function from the departments of the Ministry of Defense to service agencies. The former should deal with planning, standardization, quality control, and interaction with the Armed Forces of Ukraine, while commercial issues should be transferred to the relevant agencies. An agency that deals directly with defense procurement has already been established. The agency that will be responsible for resource support, i.e., logistics, is in the process of being launched. We are currently working on all the necessary legal acts," said Oleksii Reznikov. The second area, he said, is digital transformation, which minimizes any corruption factors, including electronic registration of persons liable for military service. The Ministry of Defense is actively cooperating with the NACP in this area. The third area is strengthening the anti-corruption infrastructure; in particular, the Department for the Prevention and Detection of Corruption has been strengthened in the Ministry of Defense, and a public Anti-Corruption Council has been established, with a member of the Council also joining the Defense Collegial Body. Oleksii Reznikov supported the launch of the NACP's work on integrity policy in the defense and security sectors. "It is very important for us to comply with NATO standards, in particular transparency, accountability, and prevention of corruption risks. This is necessary for the survival of the country and its future, for the 'army of the future'. The Anti-Corruption Program is one of the ways that will lead us to a positive vote for Ukraine to become a NATO member (hopefully the 33rd country in the Alliance). That is why the adoption of the State Anti-Corruption Program is an absolutely organic and necessary step, and the Ministry has already begun to implement it." According to Oleksii Reznikov, the Ministry of Defense is currently focused on fulfilling the tasks of the Anti-Corruption Program related to the disposal of the Ministry's land and real estate, surplus military property, intellectual property, fuel consumption, procurement of defense goods, works, and services, control of defense products, provision of housing for military personnel, and implementation of military personnel policy. In total, it is planned to achieve 16 strategic results by implementing more than 50 measures. "We perceive building integrity not as a slogan but as a guide to action," the Minister of Defense noted. Minister for Strategic Industries Oleksandr Kamyshin said the Ministry has two key goals to prevent corruption: to build an effective anti-corruption infrastructure in the defense industry and to introduce continuous monitoring and control of corruption risks to minimize them. "We have started the process of transforming Ukroboronprom (JSC «Ukrainian Defense Industry») into a new joint-stock company. The Supervisory Board is being formed. An anti-corruption program is being developed. We are guided by the corporate governance standards of the Organization for Economic Cooperation and Development (OECD)," said Oleksandr Kamyshin. The video of the press conference is available in Ukrainian and English. NACP and NAKO organized the press conference "How to Implement Anti-Corruption Policy in the Defense Sector During the War?" which was dedicated to the implementation of the anti-corruption policy in the defense sector during martial law. During the event, experts presented NAKO's analytical brief "State Anti-Corruption Program for 2023-2025: Success Factors for the Defense Sector". The document presents the results of the analysis of 35 main measures of the Anti-Corruption Program and identifies factors and conditions that will have a key impact on the success of their implementation. The NACP also presented an information system for monitoring the implementation of the Defense Action Plan.