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Ukraine

System for Entities Performing Government Functions (UA0059)

Overview

At-a-Glance

Action Plan: Ukraine Third National Action Plan 2016-2018

Action Plan Cycle: 2016

Status: Inactive

Institutions

Lead Institution: National Agency for the Prevention of Corruption, State Special Communication Service.

Support Institution(s): Draft of the UN Development Programme in Ukraine “Enhanced Public Sector Transparency and Integrity”, Transparency International Ukraine non-governmental organisation, other civil society institutions and international organisations (by consent).

Policy Areas

Capacity Building, E-Government, Open Contracting and Procurement, Private Sector

IRM Review

IRM Report: Ukraine End-of-Term Report 2016-2018, Ukraine Mid-Term Report 2016-2018

Starred: No

Early Results: Major Major

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information Technology

Potential Impact:

Implementation i

Completion:

Description

Event: Introduction of the system for filing and publication of declarations of entities authorised to perform the functions of national or local government, in accordance with the Law of Ukraine “On the prevention of corruption.”; Implementation timeframe: 2016-2018; Entities responsible: National Agency for the Prevention of Corruption, State Special Communication Service.; Partners: Draft of the UN Development Programme in Ukraine “Enhanced Public Sector Transparency and Integrity”, Transparency International Ukraine non-governmental organisation, other civil society institutions and international organisations (by consent).; Expected results: Filing of declarations of the subjects to be declared as specified in article 3 of the Law of Ukraine “On the prevention of corruption.”

IRM End of Term Status Summary

3. Ensure the filing and publication of e-declarations

Commitment Text:

Introduction of the system for filing and publication of declarations of entities authorized to perform the functions of national or local government, in accordance with the Law of Ukraine “On the prevention of corruption.”

Expected results: Filing of declarations of the subjects to be declared as specified in article 3 of the Law of Ukraine “On the prevention of corruption.”

Responsible Institutions: National Agency for the Prevention of Corruption, State Special Communication Service.

Supporting Institutions: UN Development Program in Ukraine “Enhanced Public Sector Transparency and Integrity”, Transparency International Ukraine non-governmental organization, other civil society institutions and international organizations (by consent).

Start date: December 2016..                                     End date: August 2018

Commitment Aim:

This commitment aims to implement the system for filing and publicizing declarations of individuals authorized to perform the functions of national or local government. Such implementation would be according to the law On the Prevention of Corruption. [43] During the previous action plan, the government created an open access unified web portal of civil servants’ declarations of income, property, and expenditures. [44] In this action plan, the government committed to ensure training of civil servants on filing e-declarations, timely filing of declarations via a properly functioning online system, and the online publication of declarations.

Status

Midterm: Complete

By the midterm, the government had completed implementation of this commitment. The National Agency on Corruption Prevention (NACP) launched two statutory waves of online filing of e-declarations for public officials. The first wave of e-declaration filings (covering over 105,000 top officials [45]) occurred from 1 September to 30 October 2016. The second wave of filings (covering over 700,000 officials at other offices) occurred from 1 January to 1 May 2017. According to NACP, by 1 July 2017, as many as 1,127,588 original e-declarations were filed. [46] In addition, NACP published the unified e-declarations registry online in an open data format. [47] For more information, please see the 2016­–2018 IRM midterm report. [48]

After the midterm assessment, the National Agency on Corruption Prevention (NACP) conducted one more statutory wave of filing e-declarations (for all public officials), occurring 1 January – 1 April 2018. Civil society experts noted that during the last wave, the online portal performed in a more stable manner. It suffered from fewer crashes. The reduced number of crashes may have resulted from improved processes: the declarants may have saved previous templates and submitted in advance. [49] As of 16 August 2018 the registry contained over 2,750,000 digital documents, including over 2,370,000 e-declarations, over 300,000 corrected documents, and over 80,000 notices of a substantial change in property status. [50] NACP also launched an online training for officials (primarily video lectures) on filing e-declarations and provided guidance by email and hotline on the correct submission of e-declarations. The agency conducted a registry audit, ensured access to other state registries, [51] and drafted law #7276, which would extend NACP’s access to public information. [52] These actions mark the full completion of this commitment, as written.

NACP also partially implemented past IRM recommendations concerning the introduction of an automated verification software. On 24 October 2017, NACP approved procedures for evaluating each e-declaration, laying the legal foundation for future audits. [53] The procedures established criteria for ranking each declaration by risk indicators. On 20 August 2018, the United Nations Development Programme in Ukraine granted NACP the software for an automated audit of e-declarations. The software can compare data from declarations with the data from other registries (land register, customs register, and other fiscal registries) by 137 risk indicators. [54] This will enable the agency to identify the declarations incongruent with other state registries and therefore bearing high corruption risks. Thus, NACP can analyze them further and, if necessary, pass them over to the National Anti-Corruption Bureau of Ukraine for investigation. However, civil society experts warn of potential barriers, which may hinder the upcoming launch of the automated system of e-declarations audit. These barriers include obtaining cybersecurity certificates from the State Special Communication Service, political considerations stalling the identification of corrupt officials, and uncoordinated decision making within NACP. [55] From its side, NACP listed many technical and testing activities required to launch the automated system and promised to complete them by September 2018. [56] Although NACP introduced the technical system of verification by the end of September 2018, it has not started the actual verification of e-declarations. [57]

The IRM progress report noted the concern that authorities might abuse the new obligation for civil society leaders to submit asset declarations. The report also noted that noncompliance with this law could result in fiscal authority pressure on civil society organizations. On 29 March 2018 NACP issued a decree clarifying that anti-corruption activists are obliged to file e-declarations only if they satisfy all of three criteria. The first is that they receive funds or property within the frame of corruption prevention programs. The second notes they must systematically implement corruption prevention policies using those funds. Thirdly, these activists must be principals of civil society organizations conducting corruption prevention activities. [58] This obligation to report thus requires principals of internationally funded anti-corruption projects to declare their personal assets. However, the government exempts other employees from the obligation to disclose. An expert from the PACT ENGAGE project viewed this decree as a political action by NACP to stay on good terms with international programs. The decree does not require the majority of employees for these programs to submit e-declarations. [59] However, the law, which has a higher authority than the agency’s decree, does not specify these criteria. Therefore, the requirement for asset disclosure remains broad and could potentially be used to put pressure on anti-corruption activists. The executive director of Transparency International Ukraine called it “the sword of Damocles” for civic activists. [60]

Did It Open Government?

Access to Information: Major

This commitment represents a significant step forward in opening a massive amount of information to the public. Prior to this action plan, officials submitted only paper declarations, which had a limited amount of information, were hard to obtain and process, and could be easily lost. The law On the Prevention of Corruption, adopted on 14 October 2014, mandated that officials disclose their assets online. The government developed a portal for filing e-asset declarations. Nevertheless, there was always a risk that the actual filing of e-declarations would never occur. Therefore, the government committed to enact the system for filing and publication of declarations. It supported that commitment with trainings for civil servants, enactment of related bylaws, launch of the public registry with all submitted data for most categories of officials and the very process of filing e-declarations.

Implementation of this commitment created an unprecedented amount of publicly available information on officials’ assets. In contrast to paper declarations, the digital records can be easily copied and analyzed, thereby preventing data loss. Civil society and the media actively utilize this new source of information. Based on the monitoring of media investigations, it is estimated that about half of journalists’ investigations about corruption and all of journalists’ investigations about the lifestyles of officials are based on e-declarations data. [61] The data from the National Agency on Corruption Prevention (NACP) web portal allowed civil society activists to implement an independent project titled Declarations, [62] which contains both electronic declarations and digitized paper declarations. Declarations has a more user-friendly design, analytical modules, and subscription availability for news. [63]

Yet, the system has shortcomings that create potential barriers, limiting the scope of disclosed information. An activist from the civil society organization Anti-Corruption Action Center criticized the closed nature of certain categories of e-declarations. For example, the officials of the Secret Service of Ukraine file e-declarations into a separately classified system, while e-declarations of military prosecutors have disappeared from the registry. [64] Moreover, NACP updated the criteria to state that one-time income should be declared only if a person is able to use the funds to satisfy personal needs. [65] A civil society expert from the PACT ENGAGE project opined that authorities try to interpret the law in such a way that it loses its intent of full transparency. [66] For example, the nuance of this NACP update regarding change in property status is that until it is proven that a person is using one-time income for personal needs, the decree does not require them to declare that property.

That said, it is unclear how the e-declarations system and information disclosed through the portal affect government policy on recruitment or the dismissal of officials. NACP did not share the full e-declarations database with the National Anti-Corruption Bureau. In particular, NACP did not share the unique indentifier, which would allow a clear identification of persons. The lack of shared data complicates the investigation of felonies. [67] Civic activists note the absence of substantial criminal prosecution of high officials or even of many lower-ranking officials. That there exist no such prosecutions casts doubt on the effectiveness of the system. [68]

Carried Forward?

As the next action plan has not been released yet, it is unknown whether the government carried the commitment forward. The National Agency on Corruption Prevention (NACP) and the National Anti-Corruption Bureau (NABU) should be able to obtain access to all state registries and use available software of an automated verification of e-declarations. In particular, NACP could provide NABU the unique indentifier, which would allow a clear identification of persons in the registries.

Following the requests from Ukrainian civil society and the international community, the IRM researcher recommends that Parliament abolish legislative amendments that require civil society activists to submit e-declarations. Such legislation makes activists potential subjects of administrative and criminal prosecution.

[43] “The Law of Ukraine ‘On the Prevention of Corruption,’” #1700-VII, the Verkhovna Rada of Ukraine: The Official Web-Portal, http://zakon2.rada.gov.ua/laws/show/1700-18.

[44] “Report on Implementation of the Action Plan for Introduction of the Open Government Partnership Initiative in 2014–2015,” Open Government Partnership, https://www.opengovpartnership.org/wp-content/uploads/2001/01/Ukraine_End-Term_Self-Assessment-Report_2014-16_EN.pdf.

[45] The following are the top officials:

  1. The president of Ukraine, members of the Parliament of Ukraine, the prime minister of Ukraine, the members of the Cabinet of Ministers of Ukraine, and heads of government agencies and their deputies;
  2. Judges, prosecutors, investigators, and category A civil servants (according to the Law “On State Service”—civil servants of 1-3 categories); and
  3. In local self-governance bodies: heads of oblast councils of oblast centers and their deputies, secretaries of city councils of oblast centers and their deputies, secretaries of city councils, mayors of cities of oblast significance, heads of rayon councils, heads of city district councils, and other officials of local self-governance of 1-3 categories.

[46] “The Interim Report on the Realization of the Action Plan for the Implementation of the Open Government Partnership Initiative in 2016–2018,” Civil Society and Authorities: Governmental Website, accessed 13 September 2017 (link no longer accessible as of 25 April 2018) http://civic.kmu.gov.ua/consult_mvc_kmu/uploads/attach-3467-910681586.doc.

[47] “The Unified E-declarations Registry,” National Agency for the Prevention of Corruption, https://portal.nazk.gov.ua/login.

[48] “Ukraine Mid-Term Report 2016–2018,” Open Government Partnership, https://www.opengovpartnership.org/documents/ukraine-mid-term-report-2016-2018-year-1/.

[49] Vitalii Shabunin (Anti-Corruption Action Center), interview with IRM researcher, 28 August 2018.

[50] Oleksandr Pysarenko (National Agency for the Prevention of Corruption), email exchange with IRM researcher, 5 September 2018.

[51] The Unified State Registry of the Ministry of Internal Affairs; the Registry of Tax Payers Owning over 10% of Stock in Companies; the State Registry of Property Rights on Real Estate; the Unified State Register of Legal Entities, Individual Entrepreneurs and Community Groups; the State Registry of Movable Property; the State Land Cadastre; the Unified State Registry of State Property; the State Naval Registry of Ukraine and Naval Book of Ukraine; the State Registry of Civil Aircrafts of Ukraine; the State Registry of Tax Payers; and the Integrated Information-Telecommunication System for Control of Persons, Vehicles, and Goods Crossing the State Border (the “Arkan” system).

[52] Oleksandr Pysarenko (National Agency for the Prevention of Corruption), email exchange with IRM researcher, 5 September 2018.

[53] “Decision #1019,” National Agency on Corruption Prevention, https://nazk.gov.ua/sites/default/files/docs/2017/%D0%B7%D0%B0%D1%81%D1%96%D0%B4%D0%B0%D0%BD%D0%BD%D1%8F/24.10/24.10%20(1019).tif.

[54] “UNDP Transferred the Software for an Automated Audit of E-declarations to NACP,” Reanimation Package of Reforms, https://rpr.org.ua/news/proon-peredala-nazk-prohramne-zabezpechennya-dlya-avtomatychnoji-perevirky-elektronnyh-deklaratsij/.

[55] Ibid.

[56] “The National Agency Makes the Next Step to Introduce the System of Logical and Arithmetic Control of Declarations,” National Agency on Corruption Prevention, https://nazk.gov.ua/news/nacionalne-agentstvo-zdiysnyuye-chergovyy-krok-iz-vprovadzhennya-systemy-provedennya-logichnogo.

[57] The System of Logical and Arithmetic Control of Declarations has been Launched, National Agency on Corruption Prevention, https://nazk.gov.ua/news/systema-logichnogo-ta-aryfmetychnogo-kontrolyu-deklaraciy-vvedena-v-ekspluataciyu

[58] “The Clarification on the Application of Particular Regulations of the Law of Ukraine ‘On the Prevention of Corruption,’” National Agency on Corruption Prevention, https://nazk.gov.ua/sites/default/files/docs/2018/news/29.03.2018%20%28%B9549%29.tif.

[59] Ivan Presniakov (PACT ENGAGE Project), interview with IRM researcher, 21 August 2018.

[60] Yaroslav Yurchyshyn (Transparency International Ukraine), interview with IRM researcher, 27 August 2018.

[61] Vitalii Shabunin (Anti-Corruption Action Center), interview with IRM researcher, 28 August 2018.

[62] Declarations, https://declarations.com.ua/.

[63] Ivan Presniakov (PACT ENGAGE Project), interview with IRM researcher, 21 August 2018.

[64] Vitalii Shabunin (Anti-Corruption Action Center), interview with IRM researcher, 28 August 2018.

[65] “The Notification about Considerable Change in Property Status,” National Agency on Corruption Prevention, https://nazk.gov.ua/sites/default/files/docs/2018/povidomlennya_pro_suttyevi_zminy_v_maynovomu_stani.pdf.

[66] Ivan Presniakov (PACT ENGAGE Project), interview with IRM researcher, 21 August 2018.

[67] Vitalii Shabunin (Anti-Corruption Action Center), interview with IRM researcher, 28 August 2018.

[68] Yaroslav Yurchyshyn (Transparency International Ukraine), interview with IRM researcher, 27 August 2018.


Commitments

  1. Infrastructure Data Portal

    UA0070, 2018, E-Government

  2. Open Standard for e-System

    UA0071, 2018, E-Government

  3. Ensuring Openness and Transparency of Selling Public Assets and Property

    UA0072, 2018, E-Government

  4. Transparency in Public Procurement (Prozorro)

    UA0073, 2018, E-Government

  5. Awarenss Raising About Social and Economic Development

    UA0074, 2018, Aid

  6. e-Calls for Proposals to Support CSOs

    UA0075, 2018, Civic Space

  7. Beneficial Ownership Registry

    UA0076, 2018, Beneficial Ownership

  8. Anti-Corruption Training

    UA0077, 2018, Anti-Corruption Institutions

  9. Publishing Environmental Information

    UA0078, 2018, E-Government

  10. Database of Natural Resources

    UA0079, 2018, E-Government

  11. Interactive Map of Mines

    UA0080, 2018, E-Government

  12. Priority Electronic Services

    UA0081, 2018, Citizenship and Immigration

  13. Online Platform for Executive Bodies and CSOs

    UA0082, 2018, Civic Space

  14. EITI Online Data

    UA0083, 2018, E-Government

  15. Electronic Resources for Education

    UA0084, 2018, E-Government

  16. Online Verification of Education Certificates

    UA0085, 2018, E-Government

  17. Free Access to National Repository for Academic Texts

    UA0086, 2018, E-Government

  18. Administrative Service Decentrilisation and Improvement

    UA0057, 2016, Capacity Building

  19. United State Portal Extension; Electronic Government Information Services Unification; Modern Tools for Electronic Identification

    UA0058, 2016, Capacity Building

  20. System for Entities Performing Government Functions

    UA0059, 2016, Capacity Building

  21. Free Urban Planning Documentation

    UA0060, 2016, E-Government

  22. Beneficial Ownership Verification System

    UA0061, 2016, Beneficial Ownership

  23. CoST Beneficial Ownership Standards

    UA0062, 2016, E-Government

  24. Transpartent Budget System

    UA0063, 2016,

  25. Starred commitment Open Public Procurement

    UA0064, 2016, Capacity Building

  26. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Extractive Industries

  27. Environmental Public Monitoring

    UA0066, 2016, Environment and Climate

  28. Community Policing System

    UA0067, 2016, Education

  29. Draft Law on Public Consultations

    UA0068, 2016, Legislation & Regulation

  30. Development of E-Democracy.

    UA0069, 2016, Money in Politics

  31. Improve Government Rules on CSO Involvement

    UA0031, 2014, E-Government

  32. Financing of Charities

    UA0032, 2014, Civic Space

  33. Not-For-Profit Status for CSOs

    UA0033, 2014, Civic Space

  34. Public Participation Law

    UA0034, 2014, E-Government

  35. Establishing Rules on Processing Official Information

    UA0035, 2014, E-Government

  36. Access to Urban Planning Documents

    UA0036, 2014, E-Government

  37. Starred commitment Access to Communist-Era Archives

    UA0037, 2014, Legislation & Regulation

  38. Starred commitment Draft Law on Open Data

    UA0038, 2014, Legislation & Regulation

  39. Starred commitment Supervisory Mechanism for the Right to Information

    UA0039, 2014, Legislation & Regulation

  40. Compliance with EITI

    UA0040, 2014, Extractive Industries

  41. Monitoring of Infrastructure Projects

    UA0041, 2014, Anti-Corruption Institutions

  42. Adopt Regional Anti-Corruption Programmes

    UA0042, 2014, Anti-Corruption Institutions

  43. Corruption Risk Assessment Methodology

    UA0043, 2014, Anti-Corruption Institutions

  44. Starred commitment Asset Disclosure on a Single Web Portal

    UA0044, 2014, Asset Disclosure

  45. Law on Administrative Procedure

    UA0045, 2014, Legislation & Regulation

  46. Law on Streamlining Payment of Administrative Fees

    UA0046, 2014, E-Government

  47. Administrative Services Portal

    UA0047, 2014, E-Government

  48. Draft Law on Decentralisation of Administrative Services

    UA0048, 2014, Legislation & Regulation

  49. Draft Law on Social Services

    UA0049, 2014, E-Government

  50. e-Government Laws

    UA0050, 2014, E-Government

  51. Electronic Readiness Assessment

    UA0051, 2014, E-Government

  52. Government Regulations on Open Data

    UA0052, 2014, E-Government

  53. Electronic Democracy Development Roadmap

    UA0053, 2014, E-Government

  54. Open Budget Initiatives

    UA0054, 2014, E-Government

  55. e-Petitions

    UA0055, 2014, E-Government

  56. e-Governance Training for Local Government

    UA0056, 2014, Capacity Building

  57. Laws on Public Participation

    UA0001, 2012, Civic Space

  58. Amendments to the Law on Community Associations

    UA0002, 2012, Civic Space

  59. Amendments to Resolutions on Collaboration with Civil Society

    UA0003, 2012, E-Government

  60. Training for Public Servants on Consultations

    UA0004, 2012, Capacity Building

  61. Harmonisation of Access to Information Laws

    UA0005, 2012, E-Government

  62. By-Laws on Access to Information

    UA0006, 2012, Legislation & Regulation

  63. Guidelines for Classifying Data

    UA0007, 2012, Public Participation

  64. Public Information Recording Systems

    UA0008, 2012, Records Management

  65. Law on Public Broadcasting

    UA0009, 2012, Civic Space

  66. Public Access to Information in State Registers

    UA0010, 2012, E-Government

  67. Starred commitment Extractive Industries Transparency Initiative

    UA0011, 2012, E-Government

  68. Law for Controlling Declarations of Public Servants

    UA0012, 2012, Asset Disclosure

  69. Public Declarations of Officials’ Assets

    UA0013, 2012, Asset Disclosure

  70. Guidelines on Conflicts of Interest

    UA0014, 2012, Conflicts of Interest

  71. Updated Anti-Corruption Laws

    UA0015, 2012, E-Government

  72. Regional Anti-Corruption Programmes

    UA0016, 2012, E-Government

  73. Law on Competitive e-Government Procurement

    UA0017, 2012, E-Government

  74. Starred commitment Administrative Services Reforms

    UA0018, 2012, E-Government

  75. Electronic Access to Administrative Services

    UA0019, 2012, E-Government

  76. Governmental Web Portal of Administrative Services

    UA0020, 2012, E-Government

  77. Administrative Services in a Digital Format

    UA0021, 2012,

  78. Starred commitment Regional Administrative Service Centres

    UA0022, 2012, Public Service Delivery

  79. Programme for Promotion of e-Government

    UA0023, 2012, E-Government

  80. Electronic Collaboration Between Executive Agencies

    UA0024, 2012,

  81. Web-Based Petitions System

    UA0025, 2012,

  82. One Stop Shop for e-Reporting

    UA0026, 2012, E-Government

  83. e-Region Pilot Project

    UA0027, 2012, E-Government

  84. Network of e-Government Practitioners

    UA0028, 2012, Public Participation

  85. Public Libraries as Bridges Towards e-Governance

    UA0029, 2012, E-Government

  86. e-Government Knowledge Management Portal

    UA0030, 2012,