Ukraine parliament approves first reading of bill on anti-corruption court

2 March 2018

Ukraine’s parliament approved on March 1 the first reading of the bill creating the High Anti-Corruption Court, which is being demanded by Western governments and institutions, particularly the IMF, which requires it for the next loan tranche. The bill was supported by 282 MPs, far more than the 226-vote majority required. The bill was heavily criticized by the IMF in January for failing to meet the standards of the Venice Commission of the Council of Europe for failing to meet its standards in creating the court. The approved legislation didn’t take these concerns into account but Speaker Andriy Parubiy and other top officials vowed to amend the legislation ahead of the vote in the second reading.

 

The High Anti-Corruption Court would provide the forum to prosecute criminal cases and convict suspects investigated by the National Anti-Corruption and Specialized Anti-Corruption Prosecution, which are independent law enforcement bodies created in 2015 to meet IMF requirements for loans. It will serve as the court of first instance and appeals for high-profile corruption cases. After its passage, President Poroshenko called for the bill’s final approval by the end of the spring, stressing that “any delay with the second reading is absolutely unacceptable.” Amendments will be reviewed in the next two weeks, he said. “

 

Zenon Zawada: Approving the bill’s first reading is the easy part, despite taking so long. It was quite ironic to see the president calling for delays to the second reading unacceptable, after he is widely recognized to have stalled the bill’s first reading. We expect parliament to approve amendments in the second reading that enable the legislation to just barely meet Council of Europe standards and just barely qualify for an IMF loan tranche. And that’s not because the Ukrainian government is much interested in reform, but because it desperately needs Western loans for economic stability. In the process, they will try to limit the court’s authority as much as possible.

 

The president’s spring deadline for the bill’s full approval (including his signature) is worth noting. Approving the legislation by then would enable him to receive the next IMF loan tranche before being able to call early parliamentary elections before the March 2019 presidential vote. As we mentioned yesterday, this maneuver would guarantee him an influential parliamentary faction, which he risks losing completely if he loses the presidential election. The IMF would be far more reluctant to offer its next loan tranche in the middle of an early election campaign.