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Ukraine

Open Standard for e-System (UA0071)

Overview

At-a-Glance

Action Plan: Ukraine Third National Action Plan 2016-2018

Action Plan Cycle: 2018

Status: Active

Institutions

Lead Institution: MoJ MoE Antimonopoly Committee of Ukraine

Support Institution(s): SETAM, Prozorro.Sales, Government-Civic Initiative “Together against Corruption,” Transparency International Ukraine, other CSOs and international organizations (upon their consent)

Policy Areas

E-Government, Legislation & Regulation, Legislative

IRM Review

IRM Report: Ukraine Design Report 2018-2020

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information , Technology

Potential Impact:

Implementation i

Completion: Pending IRM Review

Description

Introducing open standards of operation of the E-system of selling arrested assets
Lack of competition in selling the arrested assets through online auction creates space for corruption risks and makes civic control impossible.
The Ministry of Justice (MoJ), Ministry of Economy, State-run Enterprise “SETAM” (E-System of Selling Arrested Assets), and Government-Civic Initiative “Together
Against Corruption” signed a Memorandum/roadmap on cooperation in the field of selling arrested assets that aims to ensure transparent, competitive-based and
favourable environment for selling assets that was arrested by courts.
On 18 June 2018, the MoJ adopted the Order # 1859/5 on amending the Procedure of Selling Arrested Assets that enabled and regulated the procedure of letting
economic entities irrespective of the form of ownership and individual entrepreneurs to use an electronic resource which is a part of the online auction system through
5
agent and partner agreements. Moreover, the amendments formalized the procedure of interaction between e-platforms by opening the API that proves that the
environment for e-selling of arrested assets within the framework of executive proceedings is indeed competitive.
Engaging independent platforms will enable economic entities irrespective of the form of ownership and individual entrepreneurs to conduct online auctions to sell
arrested assets. In its turn, SETAM got the status of ProZorro.Sales operator letting SETAM to sell small privatization targets and assets of banks that are liquidated.
Actions Responsible Timeframe Partners Indicator
1. Monitoring and evaluation
of the operation of “partner
agreements” and an updated
Procedure of Selling Arrested
Assets
MoJ
MoE
Antimonopoly Committee
of Ukraine
December 2018 – March
2019
SETAM,
Prozorro.Sales,
Government-Civic Initiative “Together against
Corruption,”
Transparency International Ukraine,
other CSOs and international organizations
(upon their consent)
Findings on the operation of
“partner agreements” are
summarized, and amendments to
the Procedure of Selling Arrested
Assets made
2. Update of the Procedure of
Selling Arrested Assets based
on the findings of monitoring
and evaluation
MoJ
MoE
Antimonopoly Committee
of Ukraine
June 2019 SETAM,
Prozorro.Sales,
Government-Civic Initiative “Together against
Corruption,”
Transparency International Ukraine,
other CSOs and international organizations
(upon their consent)
Procedure of Selling Arrested
Assets amended based on the
evaluation of efficiency of
“partner agreements”
3. Producing the Terms of
reference on improving the esystem of selling arrested
assets, conducting the
respective tender
-//- 1
st quarter of 2019 -//- The respective ToR drafted,
tender for improving the esystem of selling arrested assets
conducted
4. Improving the e-system of
selling arrested assets
MoJ
MoE
Antimonopoly Committee
of Ukraine
February 2019 SETAM,
Prozorro.Sales,
Government-Civic Initiative “Together against
Corruption,”
E-system of selling arrested assets
improved and tested
6
Transparency International Ukraine,
other CSOs and international organizations
(upon their consent)
5. Distribution of functions of
administrator of central
database of online auction
system and auction organizer,
transferring the system to the
respective administrator
May 2019 Administrator of central database
of online auction system and
auction organizer identified,
system transferred to the
administrator
Expected results of this activity are creating transparent, competitive-based and favourable environment for organization and e-selling of assets that was arrested by
during the enforcement of court decisions and decisions of other authorities/officials that will reduce time for selling these assets and improve efficiency of enforcement
of court decisions and decisions of other authorities/officials.

IRM Midterm Status Summary

2. Introduce the E-system of selling arrested assets

Language of the commitment as it appears in the action plan: [11] Introducing open standards of operation of the E-system of selling arrested assets

Lack of competition in selling the arrested assets through online auction creates space for corruption risks and makes civic control impossible.

The Ministry of Justice (MoJ), Ministry of Economy, State-run Enterprise “SETAM” (E-System of Selling Arrested Assets), and Government-Civic Initiative “Together Against Corruption” signed a Memorandum/roadmap on cooperation in the field of selling arrested assets that aims to ensure transparent, competitive-based and favourable environment for selling assets that was arrested by courts.

On 18 June 2018, the MoJ adopted the Order # 1859/5 on amending the Procedure of Selling Arrested Assets that enabled and regulated the procedure of letting economic entities irrespective of the form of ownership and individual entrepreneurs to use an electronic resource which is a part of the online auction system through agent and partner agreements. Moreover, the amendments formalized the procedure of interaction between e-platforms by opening the API that proves that the environment for e-selling of arrested assets within the framework of executive proceedings is indeed competitive.

Engaging independent platforms will enable economic entities irrespective of the form of ownership and individual entrepreneurs to conduct online auctions to sell arrested assets. In its turn, SETAM got the status of ProZorro.Sales operator letting SETAM to sell small privatization targets and assets of banks that are liquidated.

Milestones:

  1. Monitoring and evaluation of the operation of “partner agreements” and an updated Procedure of Selling Arrested Assets
  2. Update of the Procedure of Selling Arrested Assets based on the findings of monitoring and evaluation
  3. Producing the Terms of reference on improving the e-system of selling arrested assets, conducting the respective tender
  4. Improving the e-system of selling arrested assets
  5. Distribution of functions of administrator of central database of online auction system and auction organizer, transferring the system to the respective administrator

Start Date: December 2018

End Date: May 2019

Context and objectives

This commitment aims to ensure a transparent and competitive system for selling assets seized by courts due to alleged criminal activity. [12] Civil society has criticized the existing E-System of Selling Arrested Assets (SETAM) as being a monopolistic platform. [13] In September 2016, the Anti-Monopoly Committee (AMC) recommended the government fix the decrees that created the monopoly on selling seized assets [14] and allow other platforms to also sell these assets. [15]

This commitment calls for updating the procedures and improving SETAM with additional administrative functions. Each activity has an indicator and overall, they are verifiable. However, it is unclear how SETAM will relate to the newly established ProZorro.Sale, which is an electronic system designed to sell state property. This commitment is clearly relevant to the OGP value of access to information, while its digital realization is relevant to technology and innovation.

According to the SETAM representative, there was room for improvement, even though their online platform already performed all necessary functions for selling arrested assets through online auctions, [16] used blockchain technology, provided equal opportunities and information to all bidders, and ensured 24-hour access to information about auctions. Allowing independent platforms to conduct online auctions could improve competition, [17] as could the separation of the various functions of the process like storage, transportation, and sale. [18] However, it is unclear how this commitment intends to change the sales of seized assets and how it would be different from what is already done by ProZorro.Sale. Therefore, it is difficult to assess the potential impact of this commitment beyond minor.

Next steps

The IRM researcher recommends that commitments in the next action plan clearly articulate the intended change and expected results that the activities seek to enact.

[12] “The Cabinet of Ministers of Ukraine. Decree on 18 December 2018 #1088-p” on The Government Portal, The Unified Web-portal of Executive Authorities of Ukraine (Cabinet of Ministers of Ukraine Secretariat, 18 Dec. 2018), https://www.kmu.gov.ua/storage/app/media/17-civik-2018/partnerstvo/plan_2018%20-%202020.pdf.
[13] “SETAM Suspected in Monopolizing the Market of Selling Arrested Property Avoids Sanctions and Loses Trust to It” (Corruption News, USBN Ternopil, accessed Dec. 2019), https://ternopil.ukraines.news/dp-setiv-pidozryuvanu-u-monopolizaci%D1%97-rinku-torgivli-areshtovanim-majnom-unikaye-sankcij-a-dovira-do-ne%D1%97-padaye/.
[14] “Some issues of the sale of seized property through electronic auctioning” Resolution no. 212-r (Verkhovna Rada of Ukraine, 11 Mar. 2015), https://zakon.rada.gov.ua/laws/show/212-2015-%D1%80; “On the sale of seized property through electronic auctioning” Order no. 2710/5 (Verkhovna Rada of Ukraine, 22 Dec. 2015), https://zakon.rada.gov.ua/laws/show/z1620-15/page.
[15] “The Report Based on the Results of Research of the Market of Selling Arrested Assets by Conducting Electronic Bidding” (Anti-Monopoly Committee of Ukraine, 20 Sept. 2016), http://www.amc.gov.ua/amku/doccatalog/document?id=129945&schema=main.
[16] Mykola Pysanchyn (SETAM), email exchange with IRM researcher, 1 Apr. 2019.
[17] “The Cabinet of Ministers of Ukraine. Decree on 18 December 2018 #1088-p” (Cabinet of Ministers of Ukraine Secretariat).
[18] Kateryna Ryzhenko (TI Ukraine), interview by IRM researcher, 28 Feb. 2019.

Commitments

  1. Infrastructure Data Portal

    UA0070, 2018, Anti-Corruption

  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, Access to Information

  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, Anti-Corruption

  8. Anti-Corruption Training

    UA0077, 2018, Anti-Corruption

  9. Publishing Environmental Information

    UA0078, 2018, E-Government

  10. Database of Natural Resources

    UA0079, 2018, Access to Information

  11. Interactive Map of Mines

    UA0080, 2018, E-Government

  12. Priority Electronic Services

    UA0081, 2018, Citizenship & Immigration

  13. Online Platform for Executive Bodies and CSOs

    UA0082, 2018, Civic Space

  14. EITI Online Data

    UA0083, 2018, Access to Information

  15. Electronic Resources for Education

    UA0084, 2018, Access to Information

  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, Anti-Corruption

  21. Free Urban Planning Documentation

    UA0060, 2016, E-Government

  22. Beneficial Ownership Verification System

    UA0061, 2016, Anti-Corruption

  23. CoST Beneficial Ownership Standards

    UA0062, 2016, Anti-Corruption

  24. Transpartent Budget System

    UA0063, 2016,

  25. Starred commitment Open Public Procurement

    UA0064, 2016, Access to Information

  26. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Anti-Corruption

  27. Environmental Public Monitoring

    UA0066, 2016, Access to Information

  28. Community Policing System

    UA0067, 2016, Education

  29. Draft Law on Public Consultations

    UA0068, 2016, Legislation & Regulation

  30. Development of E-Democracy.

    UA0069, 2016, E-petitions

  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, Access to Information

  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, Access to Information

  39. Starred commitment Supervisory Mechanism for the Right to Information

    UA0039, 2014, Access to Information

  40. Compliance with EITI

    UA0040, 2014, Anti-Corruption

  41. Monitoring of Infrastructure Projects

    UA0041, 2014, Anti-Corruption

  42. Adopt Regional Anti-Corruption Programmes

    UA0042, 2014, Anti-Corruption

  43. Corruption Risk Assessment Methodology

    UA0043, 2014, Anti-Corruption

  44. Starred commitment Asset Disclosure on a Single Web Portal

    UA0044, 2014, Anti-Corruption

  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, Access to Information

  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, Access to Information

  53. Electronic Democracy Development Roadmap

    UA0053, 2014, E-Government

  54. Open Budget Initiatives

    UA0054, 2014, Access to Information

  55. e-Petitions

    UA0055, 2014, Dispute Resolution & Legal Assistance

  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, Access to Information

  62. By-Laws on Access to Information

    UA0006, 2012, Access to Information

  63. Guidelines for Classifying Data

    UA0007, 2012, Public Participation

  64. Public Information Recording Systems

    UA0008, 2012,

  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, Anti-Corruption

  68. Law for Controlling Declarations of Public Servants

    UA0012, 2012, Anti-Corruption

  69. Public Declarations of Officials’ Assets

    UA0013, 2012, Anti-Corruption

  70. Guidelines on Conflicts of Interest

    UA0014, 2012, Anti-Corruption

  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, Anti-Corruption

  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, E-petitions

  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,

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