IMF presses Ukraine to kill bill gutting anti-corruption bureau

The Ukrainian government has taken steps to stop the progress of a bill in parliament that would prevent the country’s Anti-Corruption Bureau (NABU) from operating. Ukrayinska Pravda reported on May 17 that the head of the Verkhovna Rada Law Enforcement Committee Andrei Kozhmemyakin, tabled the bill (6220), and proposed forming a working group to remove it completely.

The move comes after a strongly worded letter from IMF Mission Chief for Ukraine Ron van Rooden to Ukrainian PM Volodymyr Groysman, which emphasized that the proposed legislation was inconsistent with the IMF program for Ukraine and could reverse previous actions. The bill would allow government bodies other than the NABU to initiate corruption investigations and, moreover, claim exclusive jurisdiction over the investigation, thus effectively locking out NABU.

James Hydzik: The IMF letter, dated May 15, did not directly refer any danger to Ukraine’s Extended Funds Facility program, but the seriousness of the situation was made clear. We do not think that this will be the last attempt to castrate NABU, but it is encouraging that the Ukrainian government can respond quickly to criticism from the right corners. With the threat to NABU over for now, though, the IMF will focus on the more tangled issue of pension reform.