Ukraine anti-corruption bodies haven’t produced results, IMF says

The creation of new anti-corruption bodies in Ukraine hasn’t led to significant results in this effort, the IMF reported in its comments on third review of its USD 17.5 bln loan program with Ukraine made public on April 3. “Corruption needs to be tackled decisively. Despite the creation of new anticorruption institutions, concrete results have yet to be achieved,” IMF Acting Chair David Lipton said.

The prior day, National Anti-Corruption Bureau Head Artem Sytnyk told a television interview that the Poroshenko administration is politically pressuring the body in its attempts to appoint a favored candidate to an independent auditing committee. He said these attempts are a reaction to the bureau’s work in interfering with corruption.

The bureau is currently reviewing the legality of the National Bank’s decision to refinance Ukrainian commercial banks and how these funds were spent, Sytnyk said, referring to measures taken following the economic collapse of 2014. “A large part of the costs that were offered as refinancing were transferred to offshore accounts or foreign banks,” Sytnyk said in the interview, estimating such as in the billions.

Zenon Zawada: Sytnyk’s work has the support of key reformers in the Ukrainian parliament, as well as much of the NGO community. On the other hand, the Poroshenko administration has repeatedly demonstrated attempts to interfere with anti-corruption efforts that restricted its authority ever since taking office in June 2014. We see the risk that the president will continue to obstruct anti-corruption efforts that restrict his authority and influence, regardless of the effect on Ukraine’s image among its creditors.