Annual report Transparency International / 2016 1

ANNUAL REPORT Transparency International UKRAINE 2016 2 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 3

Transparency International UKRAINE is a strong member of the global movement that embraces the TI global vision of a world, where public authorities, business circles, civil society and everyday life of citizens are free of corruption.

To reduce the level of corruption in Our Ukraine by promoting transparency, accountability and integrity in mission public authorities and civil society.

Looking into the future, in 2018 Our we see ourselves as an organization that can boast of a solid analytical potential, works to scrutinize current anti-corruption policies vision of the state, and advances towards becoming a full-fledged center for policy development. 4 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 5 Yaroslav Jose Ugaz

Yurchyshyn Chair of the Board, Executive Director of Transparency Transparency International International Ukraine

Transparency International wit- nessed many highlights in 2016. We have seen significant achievements from our Let us unite and fight chapters in Ukraine, Bangladesh, Hon- together to break the duras, Kenya, and many, many others. chain of corruption. Transparency International Ukraine together with civil society and journalists worked much to bring closer the visa-free regime with and make the au- thorities fulfil their promises concerning the introduction of e-declarations. More than 100,000 of public officials filed their declarations online. Information disclo- 2016 has passed, a year of mixed ex- assessed by 52% of , adop- sure on their own income and making periences and contrasts. tion of the law on transparent party fi- it available is a progressive step towards nancing. Much work is ahead, as 81% of E-declaration has been launched, accountability, integrity and cleaning the citizens consider fight against corruption but the National Agency on Corruption public sector off corrupt officials. to be unsuccessful. Every day we work Prevention (NACP) did not check any This is the first step towards the sys- to satisfy the request for justice, which declarant and did not refer any case to temic fight against corruption. To im- made society rise against the rotten sys- the National Anti-corruption Bureau plement a successful anti-corruption re- tem three years ago. We want corrupt of- (NABU) or other institutions. The po- form the judiciary in Ukraine should be ficials, who steal from Ukrainians, to be litical party financial reporting proce- transformed. During the meeting with brought to justice, and transparent rules dure was formed, but Ukrainian politics I and mechanisms to work in Ukraine. We hardly became more accountable and emphasized that current judicial system will continue working and investing our open. Ukraine at last managed to fulfill is the core obstacle which prevents break- energy into strategic priorities: promote the requirements of the visa liberalization ing the cycle of impunity for corruption. open governance, develop zero tolerance Action Plan, particularly, its anti-corrup- Another way is asking outsiders to act as for corruption, and help those who fight tion component, but did not obtain the neutral observers, partners, trainers and against corruption. long sought-after visa regime facilitation facilitators of change like the successful with the EU countries. We can achieve progress only by unit- International Commission Against Im- ing the efforts of like-minded people from More setbacks can be found. And, punity in Guatemala (CICIG). Unfor- civil society, state and private sectors. probably, there will not be fewer in 2017. tunately, cases against former President Transparency International Ukraine as The future is full of challenges and, there- Viktor Yanukovych and his cronies have a chapter of the global anti-corruption fore, will require a very active work on been stalled because of systemic problems movement is ready to be a platform for our part. TI Ukraine’s team is changing, in the judicial system. As long as Ukrain- uniting all stakeholders who want to help strengthening, and adapting. Our main ian corrupt officials feel impunity, the in making Ukraine strong and clean from office moved from Kropyvnytskyi to . system will remain inefficient. corruption. With the assistance of UNDP in Ukraine Thus, the following important step of TI Ukraine underwent the procedure Ukraine towards corruption eradication of organizational capacity assessment, will be the establishment of anti-corrup- developed a plan of top-priority institu- tion courts and increasing all the efforts tional transformations, and got a basic to effectively investigate and bring to institutional support for the transitional court the cases of figurants from the “Ya- period. nukovych sanction list”. It is important There were also victories. The launch not only to activate all the possibilities for of the e-declaration system, which is a efficient investigation, bringing to court success according to 63% of Ukrainians these cases and obtaining convictions, (the Rating group survey) and the work but also to recover the money whether lo- of the ProZorro system, which 49% of cated abroad or within Ukraine. This also respondents consider to be a Ukrainian relates to the corrupt practices within the success, implementation of the competi- current authorities. tive selection of public officials, positively We will fight, we will win! 6 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 7 #Victories

The ProZorro public People saw 800 billboards Together with the procurement system has with social advertisement families of Heavenly saved the State 5,08 billion against corruption in 15 Hundred Heroes the anti- hryvnias in 2016. regions. corruption award named after the hero Yurii Popravka was established.

TI Ukraine experts helped The CHAIRof Transparency 200 whistleblowers in the International Jose Ugaz, end of 2016. who met with President Petro Poroshenko, visited In Panama, at the Ukraine for the first time. world Transparency International IACC International Anti- Corruption Conference, Operating Director Andrii Borovyk and member of The ProZorro.Sale system’s the Board Vitalii Kasko amount of goods exceeded told about the course 40 million hryvnias. of asset recovery of Due to the consolidated Yanukovych and his work of civil society and allies and fight against international pressure corruption among of the Transparency Ukrainian high-ranking International network, officials. the e-declaration system has been launched. About Through our lectures, 100,000 of public officials 700 people learned how to declared their income. fight corruption.

The Parliament adopted The ProZorro system got ТІ Ukraine and Anti- the law on transparent the most prestigious award corruption Action Centre financing of political the sphere of procurement hold the ІІІ International parties from the state World Procurement Conference on Recovery budget, which was Awards 2016. of the Assets Stolen by advocated by TI Ukraine Corrupt Political Elite. and its partners. 8 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 9

Institutional

Development New Executive New Board New Accents New Development Director Plan Transparency International Ukraine is entering 2017 renewed and invigo- In the summer of 2016, On October 15, 2016, during In the autumn of 2016, TI In summer 2016, TI rated! The Ukrainian chapter of the Yaroslav the conference the members Ukraine set its strategic pri- Ukraine underwent a pro- world’s foremost anti-corruption Yurchyshyn, of ТІ Ukraine elected its orities and implementation cedure of organizational organization strives for the eradi- became the new executive board. The new members of strategies for 2016-2018. Our capacity comprehensive as- cation of corruption in the coun- director of TI Ukraine. He the Board are top priorities are: sessment with the support of try. We must increase our own in- was chosen by the Board the Enhanced Public Sector fluence to reach this goal! We are Juhani Grossmann, through a competitive Head of anti-corruption Transparency and Integrity resolved to become better, more search. Yaroslav is an expert Open and UNDP project. profound, and thorough. We will projects in Western Europe in advocacy and anti-cor- and South-Western Asia; independent make every effort to strengthen ruption policy, holding a de- TI Ukraine‘s team has your confidence in us and our effi- gree in history and political Vitalii Kasko, government: formed an organizational de- velopment plan (inner trans- ciency. studies. Yaroslav headed the former Deputy Prosecutor monitoring of public pro- advocacy campaign for the General, lawyer; formations of the organiza- curement and sales integrity, tion, procedures, politics and Reanimation Package of Re- Yulia Klymenko, Open Government Partner- forms (RPR) coalition and transition to the program- former Deputy Minister of ship Initiative’s standards im- based approach) based on remains a leading expert of Economic Development; plementation. the RPR Anti-Corruption the findings, and received an institutional support for the group. In January he was Andrii Marusov, Zero tolerance elected the Co-head of the independent expert in public transition period up to Au- RPR Board. He has many procurement, journalist; for corruption gust 2017. years of experience in con- Tomas Fiala, conducting informational ducting civil lobbying cam- Chief Executive Officer paigns, working as people’s and advocacy campaigns, of the Dragon Capital monitoring of the Yanukovy- deputy assistant, advocacy investment company. training, and cooperating ch regime’s corrupt practices with media. In addition, Ya- and top officials’ conflicts roslav headed the Ukrainian of interest, strengthening national scout organization Ukrainian business integ- “Plast” for 3 years. rity, implementing a political party financing transparency Volunteers control mechanism, and pro- moting open access to state In 2016 forty-six volun- data. «The new team will teers completed an intern- help the organiza- ship in TI Ukraine. These are tion remain true Effective people from Ukraine, Ger- to itself, maintain corruption many, the USA (Harvard, and develop on past fighters: Yale), Norway, Romania, Po- successes, renew land, Thailand, France (Sci- itself from within, ence Po), Great Britain, Italy, providing support to while always remai- Switzerland, and Scotland. whistleblowers and corrup- ning true to the Volunteers did translations of tion fighters, assisting in the values of the global TI Ukraine documentation, development of anti-corrup- movement. During helped in the preparation of tion state agencies, and re- the following two anti-corruption instructions, staffing Ukrainian courts. years, we will st- monitored e-procurement, rive for more sta- searched international ma- bility, which will terials concerning public of- make Ukraine more ficials’ life styles, and helped trustworthy,» in the analytical surveys. Andrii Marusov, Two of them joined the TI Chair of the Board Ukraine’s team. 10 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 11

The DOZORRO Public procurement and sale system and Open and monitoring portal development of monitoring infrastructure Good Governance ProZorro.Sale system

1. Public procurement and sales monitoring of procurement Complaint Review Body Challenge processed 4,000 complaints system and development of in the ProZorro system, tak- «The public from the participants of monitoring infrastructure ing into account risk indi- procurement In December 2015, the below-threshold procure- cators. TI Ukraine’s team reform in our Parliament adopted the law ment. 27.5% were satisfied 2. The DOZORRO monitoring portal promoted the concept of ob- country would On Public Procurement. From with the recommendation to ligatory implementation of be impossible August 1, 2015, the usage of reconsider the procurement 3. The project of state electronic the Open Contracting Data without hard the e-procurement system results or hold new one. As sales ProZorro.Sale Standard in procurement and systemic work became obligatory for all a result of joined efforts of and development of procure- of Transparency state costs controllers and lo- all partners, including TI ment e-monitoring in the International 4. E-health system cal communities. There was Ukraine, the ProZorro sys- Open Government Partner- Trainings Ukraine. And a problem with the organiza- tem received two prestigious ship Action Plan 2016-2018. this is not an 5. CoST (Construction Sector tion of training for the future awards: World Procurement The project of state electronic exaggeration,» Transparency Initiative) system users and providing sales ProZorro.Sale on the 38 Award and Open Govern- efficient monitoring on the basis on the Deposit Guaran- regional agents ment Award. Maksym Nefiodov, first part of society. Besides, it Deputy Minister of 6. Open Government Partnership tee Fund has been launched. Since the ProZorro.Sale became clear that the ProZo- of change Economic Development Initiative The bi.prozorro.sale public was launched in November rro principles should also be and Trade of Ukraine analytics module has been 2016 fifty-four bids for the 7. Implementation of open standards transferred into public sales. developed. total sum 41mn hryvnias of good governance in the Kyiv 165 were successfully completed. State Administration TI Ukraine’s actions trainings 8. Open Parliament for 9,500 business representatives has been conducted. TI Ukraine’s team sup- ported the development of separate ProZorro e-pro- curement system modules. The state budget saved in total Price increase Trainings for regional agents of the sold lots through the of change were organized, ProZorro.Sale was Project as well as for customers and Output 7,3 billion UAH partners: business representatives. The 62,000 unique users used ProZorro analytics modules Thanks to ProZorro, approxi- this tool. 240 representatives have been considerably im- mately from civil society organiza- 8.4% proved: public (bi.ProZorro. tions, controlling authorities Ministry of Economic Development and Trade of Ukraine, org) and professional (bipro. and law enforcement bodies state-owned enterprise Prozorro, Open Contracting Partnership, 300,000 actively use this professional Omidyar Network, European Bank for Reconstruction and prozorro.org). The DOZO- Development, Western NIS Enterprise Fund, GIZ, Federal RRO monitoring portal has module. Ten regional train- Ministry for Economic Cooperation and Development, USAID, been created and launched. of procurement ing sessions and two webi- Eurasia Foundation, International Renaissance Foundation, ТІ Ukraine continued to were completed in 2016 nars for users were conduct- Network 100 percent Life, RBC Group, Qlik Tech, Kyiv ed. More than 500 bidders’ School of Economics, Secretariat of the Cabinet of Ministers support the work of the (158,000 of them are competitive) of Ukraine, UNDP in Ukraine, USAID RADA Program, Complaint Review Body for with the expected value of 130 feedbacks from the Dozorro Embassy of the United Kingdom in Ukraine, Transparency possible violations in below- billion hryvnias. More than portal were processed. 150 International Secretariat, East Europe Fondation, Ministry of 60,000 business representatives threshold procurement. participated in the bidding process. letters were forwarded to Justice of Ukraine, State Agency for e-Governance in Ukraine, the controlling and law en- PricewaterhouceCoopers, Dnipropetrovsk Regional State The State Audit Service of Administration, BGO Gromkontrol Platform, Kyiv Investment Ukraine with the support of forcement bodies. Local civil Agency, Anti-corruption Council at the Kyiv City State TI Ukraine prepared some society organizations were Administration, Reanimation Package of Reforms. amendments to the law of granted 500,000 hryvnias Ukraine On Public Procure- for the regional monitoring ment concerning the open of public procurement. The 12 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 13

Open and E-HEALTH SYSTEM Construction Sector Open Government Transparency Partnership Good Initiative (CoST) Initiative Governance

1. Public procurement and sales implementation politically. system and development of Challenge Moreover, SE Ukrenergo re- Challenge Output monitoring infrastructure cently joined CoST Ukraine. The construction sector Low level of implementa- The National and regional 2. The DOZORRO monitoring portal is one of the least transpar- tion of good open standards action plans were developed ent and accountable sectors of responsible management, for , not only in Ukraine, but in as well as engaging citizens including key efficiency 3. The project of state electronic the whole world. In 2015, to formulate and implement indicators. The discussion sales ProZorro.Sale the Ministry of Infrastruc- the state policy; insufficient of the proposals was held in ture of Ukraine, Ukravtodor, accountability of authorities; the “World Cafe” format. ТІ 4. E-health system TI Ukraine, and CoST Inter- and weak system for provid- Ukraine joined the collective national signed a Memoran- ing quality state services. action of the Paris Declara- 5. CoST (Construction Sector Challenge dum on Implementation the tion. The status of imple- Transparency Initiative) Standards of Transparency TI Ukraine’s mentation of the Initiative The health system efficient healthcare e-system in the Construction Sector. was analyzed in ten oblasts «The main value actions of Ukraine. ТІ Ukraine is 6. Open Government Partnership needs reforming. Creation in Ukraine. of the Open Part- Initiative of an electronic healthcare a partner in the Initiative’s On December 22, 2016, TI Ukraine’s nership Initiative ТІ Ukraine has been system, which will sim- commitments implementa- the Ukrainian Ministry of actions is a partnership promoting an international 7. Implementation of open standards plify interaction for all of tion. The optimization of Healthcare, IT-managers, between the Gover- Open Government Partner- the Administration Service of good governance in the Kyiv City its users and will be effec- nment, civil society and civil society organiza- ТІ Ukraine is a host or- ship Initiative for 5 years al- Centers of Dnipropetrovsk State Administration tive, safe, modern, handy, institutions and bu- tions signed a technical ganization for the CoST Ini- ready. In 2016, the organiza- oblast has been started. transparent, and useful. siness both in plan- Memorandum on the devel- tiative in Ukraine and it en- tion became the facilitator of A high-level diagnostics 8. Open Parliament ning the Initiative’s opment of the first e-health sures effective operation of the Initiative’s management iGov.org.ua state services activities, and in TI Ukraine’s system service. ТІ Ukraine the National Secretariat and modernization mechanism internet-portal develop- their implementa- actions will serve as a guarantor of Multi-Stakeholder Group. in Ukraine, actively helped ment project was organized tion, as well as in transparency during the Moreover, TI Ukraine rep- developing its National Ac- and conducted, including course of reform develop- bearing the joint tion Plan as well as regional ТІ Ukraine joined the resents civil society or- practices of the standard ment and implementation. responsibility for action plans in Dnipropetro- implementation of the e- ganizations in the Multi- COBIT 5 «Build, Acquire commitments,» vsk and oblasts for health in Ukraine (open- Stakeholder Group and and Implement». Project the next reporting period. health.in.ua). The e-health follows the implementation Nataliia Oksha, Deputy partners: TI Ukraine assisted in the initiative has brought NGOs, of standards. Director of the Department approval of authorities’ new health and IT business, the- for Information and Public standards of openness and matic experts, academics Relations at Secretariat of constantly monitored the and government representa- Output the Cabinet of Ministers of Ministry of Economic Development and Trade of Ukraine, Initiative’s openness. tives together to optimize Ukraine state-owned enterprise Prozorro, Open Contracting Partnership, CoST in Ukraine imple- Omidyar Network, European Bank for Reconstruction and the work and digitalization Development, Western NIS Enterprise Fund, GIZ, Federal of Ukrainian healthcare. mented standards based on Ministry for Economic Cooperation and Development, USAID, four pilot projects in road Eurasia Foundation, International Renaissance Foundation, infrastructure. In Decem- Network 100 percent Life, RBC Group, Qlik Tech, Kyiv Output School of Economics, Secretariat of the Cabinet of Ministers ber 2016, the first verifica- of Ukraine, UNDP in Ukraine, USAID RADA Program, tion report indicating the Embassy of the United Kingdom in Ukraine, Transparency On November 25, 2016, branch problems and giving International Secretariat, East Europe Fondation, Ministry of the Deputy Minister of strict recommendations for Justice of Ukraine, State Agency for e-Governance in Ukraine, its reforming for achieving 4th rd Healthcare, Uliana Suprun, 43 PricewaterhouceCoopers, Dnipropetrovsk Regional State effective construction was Administration, BGO Gromkontrol Platform, Kyiv Investment IT-managers, and civil so- place place Agency, Anti-corruption Council at the Kyiv City State presented. Minister of In- ciety organizations signed a among the countries of among 102 countries Administration, Reanimation Package of Reforms. frastructure and President Memorandum declaring the and according to the recognized the success of the intention to collaborate in or- Central Asia «Open Government Index» der to build a transparent and Initiative and supported its 14 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 15

Open and Open Implementation of open Parliament standards of good Good governance in the Kyiv Governance City State Administration

1. Public procurement and sales system and development of Challenge Challenge monitoring infrastructure The lack of transparency launch of the VRU Open Low level of implementa- 2. The DOZORRO monitoring portal in the Parliament’s work and Data Portal http://opendata. tion of good open standards low level of citizen engage- rada.gov.ua/, where infor- of responsible management; ment to the parliamentary mation on MPs, draft laws, high level of corruption in 3. The project of state electronic financial and administra- local authorities; non-trans- sales ProZorro.Sale processes. tive data were published to parency of the investment the full extent and in digital policy. 4. E-health system TI Ukraine’s format; actions 5. CoST (Construction Sector development of the long- TI Ukraine’s Transparency Initiative) term Communication Strat- After Ukraine joined egy of VRU and others. actions Declaration on Parliamen- 6. Open Government Partnership tary Openness on Febru- ТІ Ukraine is an active Initiative ary 5, 2017, the Action Plan member of the Anti-corrup- on its implementation has tion Council at the Kyiv City 7. Implementation of open standards been developed. Transpar- State Administration and the of good governance in the Kyiv City ency International Ukraine, working group on prepara- State Administration the civil network OPORA, tion of regulatory legal acts CHESNO civil movement, regarding improvement of 8. Open Parliament the Eidos Centre for Po- the attracting investments litical Studies and Analysis, mechanism. Media Law Institute togeth- er with the of Ukraine with the support Output of the United Nations Devel- «Further opment Program in Ukraine The Framework Anti- implementing the Project worked on it. The Transpar- corruption Program and plan to transform partners: ency International Ukraine’s Regulations on Kyiv invest- the Kyiv City State representatives are members ment resources have been Administration’s of the Initiative’s Monitoring developed. The analytical investment policy, Committee. publication Analysis of Best we, and our partner Ministry of Economic Development and Trade of Ukraine, Practices of New Agencies Transparency state-owned enterprise Prozorro, Open Contracting Partnership, Output Functioning to Attract In- International Omidyar Network, European Bank for Reconstruction and vestments has been prepared. Ukraine, are Development, Western NIS Enterprise Fund, GIZ, Federal Ministry for Economic Cooperation and Development, USAID, ТІ Ukraine initiated the pro- initiating the Eurasia Foundation, International Renaissance Foundation, During the period of the cess of creating a mechanism establishment of a Network 100 percent Life, RBC Group, Qlik Tech, Kyiv initiative’s implementation of independent civic moni- civil independent School of Economics, Secretariat of the Cabinet of Ministers in Ukraine the following toring of the Kyiv Investment monitoring of Ukraine, UNDP in Ukraine, USAID RADA Program, results were achieved: Embassy of the United Kingdom in Ukraine, Transparency Agency’s work. mechanism for the International Secretariat, East Europe Fondation, Ministry of specialized places for Kyiv Investment Justice of Ukraine, State Agency for e-Governance in Ukraine, Agency,» PricewaterhouceCoopers, Dnipropetrovsk Regional State processing of information Administration, BGO Gromkontrol Platform, Kyiv Investment requests; Hennadii Plis, First Agency, Anti-corruption Council at the Kyiv City State Deputy Head of the Kyiv Administration, Reanimation Package of Reforms. a new section called ‘Pas- sage’ in the draft law on the City State Administration VRU’s Web portal; 16 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 17

Zero Launch of the Strengthening anti-corruption policy Defence Corruption implementation in Ukraine: Latvian tolerance for Monitoring experience applicable to Ukraine in the corruption: Committee field of political party finance control

1. Launch of the Defence Corruption Challenge Output Challenge Output Monitoring Committee The defence sector of The first agreements have Ukraine is in a critical Under the project experts 2. Strengthening anti-corruption Ukraine is in need of reform been reached with the key phase of the implementation of both chapters prepared a policy implementation in Ukraine based with a help of an experi- authorities in the defence, of anti-corruption reforms handbook Political Parties on the Latvian experience in the field enced part of international security and anti-corruption that started in 2014 and were Finance Control from A to of political party finance control community, including by sector: the Ministry of De- supported by international Z. Latvian Experience, and means of introducing the fence, State Concern Uk- organizations. The work of presented it in Kyiv in De- 3. Research of transparency in systems of transparency and roboronprom, the National NACP, which is still in the cember 2016. The printed corporate reporting in Ukraine: accountability. Anti-corruption Bureau, and process of being established, versions were sent to NACP, private and state-owned enterprises the Specialized Anti-corrup- can be strengthened due to the Accounting Chamber of tion Prosecutor’s Office. the experience of similar Ukraine, the Central Elec- TI Ukraine’s institutions abroad to ef- 4. A Case-Based Approach to Fighting The first research pri- tion Commission, and pub- actions fectively fulfill its functions, Grand Corruption orities have been identified lished on the TI Ukraine’s including in the field of po- and recommendations were website. Responding to current litical party finance control. 5. Launch of the anti-corruption challenges in the field of given: communications platform transparency and accounta- for the Ministry of De- Decorruption and communication bility of the defence sector, fence – providing the mili- TI Ukraine’s campaign Corruption Must Be Spotted The Defence Corruption tary men with dwelling and actions Monitoring Committee audit of real estate assets that 6. PASOS in cooperation with TI Ukraine: (Nezalezhnyi Antikorrupci- are owned by the Ministry; Together with Transpar- support of regional initiatives ynyi Komitet z pytan obo- health services (procurement ency International Latvia Partners for Empowerment rony, or NAKO) is a joint of drugs) for the needs of the the ТІ Ukraine’s team initi- international and Ukrai- ; ated a project within which nian monitoring group sup- for the State Concern two expert visits took place. ported by Ukraine-based At first the Ukrainian del- Secretariat and UK-based – introdu- cing the standards of OECD egation consisting of NACP Transparency International members, civil activists and Defence and Security pro- (Organization for Economic Cooperation and Develop- journalists visited Riga to gram, was established. This share their experience with project builds on the suc- ment) openness principles Project Latvian colleagues from cess of the Monitoring and at to Open Governance on partners state enterprises, monitoring the Corruption Prevention Evaluation Committee in and Combating Bureau Afghanistan, the Civil So- and assistance in their imple- mentation. (KNAB). Later the Latvian ciety Defence Reform Plat- delegation consisting of the form in Palestine, and the Bureau’s representatives and TI Defence and Security Program, Transparency International International Commission United Kingdom, Government of the Netherlands, Ministry Transparency International of Foreign Affairs of the Republic of Latvia, ТІ Latvia, against Impunity in Guate- Latvia visited Kyiv, where The Corruption Prevention and Combating Bureau (KNAB), mala. During the Secretariat the meeting with civil soci- Pact UNITER (USAID), Project office of National Reform of the Committee was estab- ety activists, NACP repre- Council, Ministry of Information Policy in Ukraine, Creative lished and staffed, the media Agency CHEIL Ukraine, Tavr Media radio group, Uptown sentatives, Central Election Chronicles, Transparency International Secretariat, European strategy was developed, and Commission, Accounting Union, PASOS (Policy Association for an Open Society), the research priorities were Chamber of Ukraine, Depu- Transparency International agencies in Azerbaijan, Armenia, identified. Belarus and Moldova, Association for Community Self- ty Minister of Justice was organization Assistance (Odesa), Institute of Analysis and held. The Latvian colleagues Advocacy (), Dnipropetrovsk Coordination and Expert delivered a lecture on party Centre on Regular Policy (). finance control. 18 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 19

Research of A Case-Based Approach Zero transparency in to Fighting Grand tolerance for corporate reporting : private and corruption: state-owned enterprises

1. Launch of the Defence Corruption Challenge Challenge Monitoring Committee The corporate sector in sibility of information and Hundreds of million dol- been introduced in Ukraine, 2. Strengthening anti-corruption Ukraine, both state and pri- reporting. lars stolen by Yanukovych it was explained how such policy implementation in Ukraine based vate institutions, need more and his allies have yet to be organizations should coun- on the Latvian experience in the field transparency and account- Output returned to Ukraine. As a re- teract and what should they of political party finance control ability to society. In view of sult, this case was chosen as do to achieve success in as- the strategic priority Zero ТІ Ukraine has created a top-priority in the frame- set recovery to Ukraine at 3. Research of transparency in Tolerance for Corruption TI the rankings of transparency work of the international the conference. corporate reporting in Ukraine: Ukraine promotes integrity and openness of 100 largest campaign Unmask the Cor- private and state-owned enterprises of the Ukrainian business enterprises of Ukraine and rupt (https://unmaskthecor- Output through its analytical and developed recommenda- rupt.org) for information, 4. A Case-Based Approach to Fighting monitoring work. tions for increasing transpar- analytical and investigative assistance. The register for the in- Grand Corruption ency. Within the project, the vestigation of corruption of- TI Ukraine’s popularization of corporate fences by the high-ranking 5. Launch of the anti-corruption actions reporting has considerably TI Ukraine’s officials of the Yanukovych communications platform increased, state-owned and actions regime and communication Decorruption and communication During 2016 the level of private large companies pay with representatives of NGO campaign Corruption Must Be Spotted transparency of fifty private more attention to transpa- in the countries where the companies and fifty state- rency and openness in repor- TI representatives at the frozen assets are held for the International Conference 6. PASOS in cooperation with TI Ukraine: owned enterprises was as- ting. The organization start- further cooperation, aiming discussed counteraction to support of regional initiatives sessed at the all-Ukrainian ed working on introduction for their recovery, has been of minimum standards and grand corruption and re- Partners for Empowerment level. The ТІ Ukraine’s team initiated. developed the companies’ openness rules for business. covery of stolen assents on transparency rankings ac- Corruption Prevention on cording to the international November 29 – December 4, methodology, assessed ex- 2016, in Panama, and during isting anti-corruption pro- the Annual Conference of grams of private companies the Global Anti-corruption and prepared general rec- Transparency International ommendations for improve- movement, on November Project ment of transparency, acces- 27-30, 2016. partners On December 15–16, 2016 together with the Anti- corruption Action Centre, the International Confer- TI Defence and Security Program, Transparency International ence on Asset Recovery was United Kingdom, Government of the Netherlands, Ministry held. It aimed not only to of Foreign Affairs of the Republic of Latvia, ТІ Latvia, share experience between The Corruption Prevention and Combating Bureau (KNAB), Pact UNITER (USAID), Project office of National Reform Ukrainian and international Council, Ministry of Information Policy in Ukraine, Creative experts on opportunities, Agency CHEIL Ukraine, Tavr Media radio group, Uptown instruments and the best Chronicles, Transparency International Secretariat, European practices on stolen assets re- Union, PASOS (Policy Association for an Open Society), Transparency International agencies in Azerbaijan, Armenia, covery, but also the attempt Belarus and Moldova, Association for Community Self- to stimulate the Ukrainian organization Assistance (Odesa), Institute of Analysis and authorities to more actively Advocacy (Poltava), Dnipropetrovsk Coordination and Expert investigate the Yanukovych’s Centre on Regular Policy (Dnipro). case. As a number of bodies and positions have recently 20 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 21

Launch of the PASOS in cooperation with TI Ukraine: Zero ‘Decorruption’ communi- support of regional initiatives, tolerance for cations platform and Partners in Empowerment ‘Corruption Must Be corruption: Spotted’ communication campaign

1. Launch of the Defence Corruption Challenge Challenge Monitoring Committee Ukraine lacks a consoli- Accountability of author- participation for these , performed and comments to 2. Strengthening anti-corruption dated platform for develop- ities in five countries (Azer- and now communicates it the draft laws regulating the policy implementation in Ukraine based ment of communications 800 baijan, Armenia, Belarus, with local authorities. transport issues have been on the Latvian experience in the field products in corruption pre- Moldova, and Ukraine) must prepared. of political party finance control vention, based on a uniform creative and be strengthened. The project The Institute of Analysis quality standard. Moreover, off-standard objective is to strengthen and Advocacy (Poltava) car- 3. Research of transparency in there is a need in balancing external ads civil society organizations ried out a complex monito- corporate reporting in Ukraine: and coordinating anti-cor- were placed around the country and leaders in the five mem- ring and analysis of adminis- private and state-owned enterprises ruption communications. ber countries of the Eastern trative services in Poltava and original radio re- Partnership that are ready to and formed practical 4. A Case-Based Approach to Fighting TI Ukraine’s cordings cooperate and use partner recommendations for their Grand Corruption actions broadcasted and international expertise improvement; developed an by Lux FM, Radio 24 and the to assist accountability of au- e-format concept of admin- Radiogroup TAVR MEDIA thorities by means of engag- istrative services delivery 5. Launch of the anti-corruption ТІ Ukraine and the Na- (Kiss FM, RAdio Roks, Relaks, ing efficient civic monitoring and together with authori- communications platform tional Council of Reforms Melodiia and others). to the policy formation pro- ties started its implementa- Decorruption and communication created the communications cess and enhancing the de- tion. The organization also campaign Corruption Must Be Spotted platform Decorruption and This is the third anti-cor- cision monitoring expertise conducted an information implemented the pilot com- ruption TI Ukraine’s cam- and decisions of authorities. campaign for popularization 6. PASOS in cooperation with TI Ukraine: munications campaign Cor- paign working on changing of Centers of Administrative support of regional initiatives ruption Must Be Spotted. The the mentality of Ukrainians TI Ukraine’s Services Provision, and for Partners for Empowerment Decorruption platform will and promoting zero toler- spreading the information become a consolidated plat- ance for corruption. actions on their activity among citi- form for the development of zens. anti-corruption communica- ТІ Ukraine selected three tions products. It was devel- regional organizations that The Dnipropetrovsk oped in a collaboration with will implement the project Coordination and Expert the Cheil Ukraine communi- in Ukraine. They use the evi- Center on Regulatory Policy cations agency that includes dence-based research so that (Dnipro) works on the pro- gender-sensitive external the monitoring of authorities ject aiming at corruption Project advertising, anti-corruption and budget process lead to partners prevention in the transport recordings on radio and policy reforming and more field in twenty-two regional strip cartoons. In the frame- transparent work. centers of Ukraine. The or- work of the campaign the «Working with ganization carried out an Ukraine’s first ever 360-de- Transparency Output analysis of data from the TI Defence and Security Program, Transparency International gree anti-corruption comic International open sources on public funds United Kingdom, Government of the Netherlands, Ministry strip was produced. The per- of Foreign Affairs of the Republic of Latvia, ТІ Latvia, Ukraine is also The Association for Com- usage, analysis of local budg- The Corruption Prevention and Combating Bureau (KNAB), formance and quest was or- an opportunity munity Self-organization As- ets on articles ‘transport’; Pact UNITER (USAID), Project office of National Reform ganized to engage youth. to fulfill the sistance (Odesa) conducted developed a draft program Council, Ministry of Information Policy in Ukraine, Creative Agency CHEIL Ukraine, Tavr Media radio group, Uptown potential for the an analysis of the forming of civil society development Chronicles, Transparency International Secretariat, European Output good of society,» and execution of local budg- in Dnipropetrovsk oblast, Union, PASOS (Policy Association for an Open Society), More than 800 creative Vladyslava Denys, ets in Yuzhne and Biliaivka including the activities on Transparency International agencies in Azerbaijan, Armenia, cities, prepared recommen- civil monitoring of authori- Belarus and Moldova, Association for Community Self- and off-standard external Creative Director at Cheil organization Assistance (Odesa), Institute of Analysis and ads were placed around the Ukraine agency dations to increase efficiency ties’ activity. The anti-cor- Advocacy (Poltava), Dnipropetrovsk Coordination and Expert country and original radio and transparency of budget ruption expertize of eleven Centre on Regular Policy (Dnipro). recordings broadcasted. costs usage, and developed regulatory legal acts in a cor- the Provisions on budget of responding sector has been 22 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 23

It Is Not Shameful to Engaging Students of the Strategic Whistleblow Information Western Ukrainian Re- priority and Mobilization gions to Active Corrup- Campaign tion Fight in Educational Effective Sphere via Development of Corruption an Anti-Corruption Center Fighters: Challenge Challenge The National Anti-cor- corrupt practices connected A number of cartoon clips There is an insufficient , . ruption reform needs some with ATO (2%). TI Ukraine were shown in the cinemas number of active youth in- The cooperation with the 1. It Is Not Shameful to Whistleblow In- information work oriented forwarded all the relevant around Ukraine. volved in the fight against Norwegian School of Eco- formation and Mobilization Campaign on changes in society in cor- reports to corresponding in- In the framework of the corruption in education due nomics also begun. Thirty ruption reporting. In par- stances requesting to make project Public Awareness- to, among other things, lack Norwegian students arrived 2. The First Instance is Under Control ticular, the widespred nega- an enquiry. raising Campaign on the of relevant knowledge. How- in Kyiv in spring and were tive stereotype on corruption In spring 2016 ТІ Functions of the Anti-cor- ever, as evidenced by the instructed on the use of anti- whistleblowers and the fact Ukraine held an expert dis- ruption. ТІ Ukraine released Output research of the state corruption instruments at 3. Engaging Students of the Western that potential informers cussion How to Protect 800 brochures explaining of corruption in Ukraine by the Kyiv-Mohyla Academy. Ukrainian Regions to Active do not have the neccessary Ukrainian Whistleblowers? the functions of the anti- Kiev international Institute Joint events with Ukrainian Corruption Fight in Educational knowledge on how to work and regional public discus- corruption bodies. They of Sociology, in our country students for sharing experi- Sphere via Development of an Anti- with anti-corruption estab- sion How to Effectively Ar- contain a step-by-step guide the youth and people with ence were also held. Corruption Center based in the lishments. rest a Public Official?M oreo- of possible interaction with a high education level often Ukrainian Catholic University as a ver, a free webinar Ways of the institution and the road demonstrate against corrup- Pilot Educational Initiative TI Ukraine’s Corruption Fight in Higher map of the reform developed tion. Ukraine seeks to bridge Output Educational Institutions and together with NABU. More this gap. actions two seminars on corruption than 500 posters on jurisdic- More than 700 young prevention in the Ministry tion of anti-corruption insti- TI Ukraine’s people during exercises, sem- During 2016 ТІ Ukraine of Healthcare of Ukraine tutions were produced. They inars and more than thirty organized the It Is Not were held. TI Ukraine ex- show the ways of whistle- actions public events received knowl- Shameful to Whistleblow in- perts conducted a training blowing and how to contact edge and became acquainted formation and mobilization for NACP as to the work these institutions. An Anti-corruption Hub with the basic tools of strug- campaign, which gathered with whistleblowers and pro- was created last spring as a gle against corruption. 168 reports on corruption. part of the ACREC center tective mechanisms. About Output 23% of complaints appeared forty NAPC employees took at the Kyiv-Mohyla Acad- to be irrelevant. The rest con- emy. Meetings with experts, place in the training sessions. An awareness-raising cerned judges and pubic of- Moreover, ТІ Ukraine workshops, and film demon- ficials (17%), corruption in campaign in whistleblo- strations on the topic of anti- delivered lectures at the wing had more than 440,000 education (14%), bribes in Ukrainian Catholic Universi- corruption are regularly held public authorities (13%), cor- spectators in the cinemas all at the hub. Half of the hub’s Project ty, five articles on corruption around Ukraine in March ruption in self-governance whistleblowing were printed lecturers are from abroad to partners: (10%), corruption in medi- 2016. The TI Ukraine’s vid- share their own experience in in the National media, 268 eos got 20,000 of views in cine and land (7%), public news on the media resources the anti-corruption sphere. «In the framework procurement (4%), fiscal social networks, and more Moreover ТІ Ukraine co- of the Anti-cor- websites were placed and two than 15,000 of unique users 400,000 sphere (3%), defence and operates with the Ukrainian ruption School press conferences were held. visited the website http://an- Pact UNITER (USAID), www.xabardocs.org, the National spectators Catholic University (UCU) representatives of ticorruption.in.ua. 26 peo- Anti-corruption Bureau of Ukraine, U.S. Embassy in Ukraine, at the cinemas watched in . The anti-corruption Transparency Inter- Hewlett Foundation, Transparency International Secretariat, ple saw 44 infographics on modules are included in the national conduct- Persha Instantsia NGO, The Friedrich Naumann Foundation the TI Ukraine’s social how to whistleblow. ed several train- for Freedom, Anti-Corruption Research and Education Centre, anti-corruption ads. UCU’s certificate programs. National University of «Kyiv-Mohyla Academy», Norwegian In March and April, 2016 ings and told about School of Economics, Ukrainian Catholic University. UCU two-module anticor- different aspects of ruption schools were held, the fight against which gathered 30 partici- corruption,» pants from different regions Khrystyna Morozova, of Ukraine: , participant of the Anti- , Odesa, Zhy- corruption School tomyr, Ivano-Frankivsk, 24 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 25

The First Instance is GIFTS AND PRIZES OF JUDGES Strategic Under Control priority OF THE FIRST INSTANCES Effective

How o en do you receive gi s IRYNA HENNADII OLENA VOLODYMYR OLENA IRYNA VALENTYNA amounting to some thousand UAH? BORYSENKO KOROBENKO BILOSHKAP POLISHCHUK KADIETOVA KONDRATOVA SAVCHENKO Corruption Did you ever hit the jackpot? Ordinary citizens are not as lucky SUPREME SUPREME SUPREME SUPREME SUPREME SPECIAL COURT FOR SUPREME SUPREME SPECIAL COURT FOR ADMINISTRATIVE COURT ECONOMIC COURT ECONOMIC COURT ECONOMIC COURT CIVIL AND CRIMINAL CASES ECONOMIC COURT CIVIL AND CRIMINAL CASES Fighters: Challenge as Ukrainian judges.

Два роки поспіль ТІFor ting decisions of judges were GIFTS, PRIZES, GAINS OF THE JUDGE two years TI Ukraine has published at the website AND HIS/HER FAMILY, THOUSAND UAH 1 900 1 823 704 330 285 200 85 been actively working to- «First Instance» (www.1i. 1. It Is Not Shameful to Whistleblow In- JUDGE’S SALARY IN 2015, formation and Mobilization Campaign wards reforming the judicial com.ua). Based on such pub- THOUSAND UAH 205 290 277 249 258 226 256 system, carry out advocacy lications TI Ukraine’s experts of effective transformations prepared and forwarded to BANK DEPOSITS OR INCOME FROM 797– bank accounts 484 – bank accounts 475 – bank accounts 11200 464– bank accounts ALIENATION OF PROPERTY OF THE – alienation – alienation – husband’s income at the USA in – income from rent 2. The First Instance is Under Control 1 073 of property 285 of property the previous year amounts to 2,925 589 in the Ukrainian justice sys- different instances (Prosecu- JUDGE AND HIS/HER FAMILY, tem and promotes establish- tor General of Ukraine, the THOUSAND UAH 3. Engaging Students of the Western Half ing of the Anti-corruption Supreme Council of Justice PROPERTY OF THE JUDGES, THEIR Ukrainian Regions to Active FAMILIES court. The judicial system re- of Ukraine, and the High 149 179 92 363 71 1 000 593 69 65 Corruption Fight in Educational form is considered as a nec- Qualification Commission Houses, SQ.M. Sphere via Development of an Anti- Apartments, SQ.M. essary element of corruption of Judges of Ukraine) at- 17 130 167 Corruption Center based in the counteraction in Ukraine. torney’s letters and appeals 82 89 80 108 40 78 108 108 53 Ukrainian Catholic University as a In 2014 the judge had Rented for Everything is in use where they paid attention to two apartments: 61 12,600 UAH Pilot Educational Initiative TI Ukraine’s controversial court decisions sq.m., 40 sq.m. 182 241 actions and demanded a response.

From 2015 ТІ Ukraine has been actively working to- Output wards reforming the judicial system, carrying out advo- Under the research the cacy of effective transforma- problems within the judici- tions in the Ukrainian justice ary system were covered by system. media due to citing and ref- Establishing an Effective erences to the research data Control Mechanism and by the Ukrainian media. Prevention to Illegal Deci- sions of Ukrainian courts up to a Project «The bigger bribe partners: you take, the hig- 1,000 11 her is the probabi- lity that you will cases TV channels be acquitted. Such a conclusion can Pact UNITER (USAID), www.xabardocs.org, the National under Article 368 of the Crimi- in their videos cited this Anti-corruption Bureau of Ukraine, U.S. Embassy in Ukraine, nal Code have been analyzed information be made from the Hewlett Foundation, Transparency International Secretariat, (demanding or receiving analysis. TI Ukraine Persha Instantsia NGO, The Friedrich Naumann Foundation improper advantages), placed is working now and for Freedom, Anti-Corruption Research and Education Centre, in the Unified Register of Court National University of «Kyiv-Mohyla Academy», Norwegian Decisions. will be working to School of Economics, Ukrainian Catholic University. break this rule,» Appropriateness of the Fedir Oryshchuk, founder penalty and identity of laws of the website Persha implementation when puni- Instantsia (First Instance) shing corrupt officials in Ukrainian courts have been investigated. News on doub- 26 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 27

We are in the media

3 491 publications this year

600 531

500 469 417 400 330 298 285 300 267

217 206 200 184 136 151

100

0 r r r y y y h une July Ma J April ugust Marc anuar A J Octobe ecembe Februar D Novembe September The main topics:

ProZorro 1 160

Е-declaration 690

Global Corruption Barometer 259

Corruption Perceptions Index 343

Visit of Jose Ugaz 265 28 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 29

Our publications and research Transparency International

Political Parties Finance Control Global Corruption Barometer Corruption Perceptions Index Open Government from A to Z. Latvian Experience Partnership Initiative

The aim of this publication is to provide Ukrainian The Global Corruption Barometer is the largest survey The Corruption Perceptions Index is an annual ranking The publication is aimed at keeping public informed government and civil society activists with instruments for in the world tracking public opinion on corruption. It of countries published by Transparency International since about the main challenges of Open Government Partnership the establishment of system of Ukrainian political parties addresses people’s direct experiences with bribery and 1995. The countries are ranked by their perceived levels initiative, its implementation in Ukraine, and fulfillment of finance control, which depends greatly upon the effectiveness details their views on corruption in the main institutions in of corruption, as determined by expert assessments and National Action Plans during the period of 2012-2016. The of NACP. However, the buy-in of civil society organizations their countries. opinion surveys. publication contains analysis of commitments that required and media are also crucial in this process. interaction between Cabinet of Ministers of Ukraine and the Parliament. The main recommendations of Independent The manual admits the fact that the realm of money in Reporting Mechanism based on the results of fulfillment of politics and control of political corruption go beyond barely the Action Plan for 2015 are also set forth in it. political parties finance control and cover some other areas of anti-corruption work such as lobbying, public procurement, private sector transparency, and election campaigns management. Some aspects of campaigns management and control are also mentioned in this manual. 30 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 31

Our finance

34 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 35

Our Board Our team

Directorate

ANDRII MARUSOV VITALII KASKO YAROSLAV ANDRII YURCHYSHYN BOROWYK Chairman of the Board Former Deputy Prosecutor Independent expert in public General, lawyer Executive Director procurement, journalist Chief Operating Officer [email protected] [email protected] [email protected] [email protected]

Innovative projects

TOMAS FIALA YULIA KLYMENKO VIKTOR NESTULIA SERHII PAVLIUK

Chief Executive Officer of the Former Deputy Minister of Director of Innovation Project Manager Ukrainian investment company Economic Development and Projects Program Dragon Capital Trade of Ukraine [email protected] [email protected] [email protected] [email protected]

JUHANI GROSSMANN ANNA BODNAR OLEKSANDR ARGAT

Head of anti-corruption projects Grant Manager Communications Manager in Western Europe and South-Western Asia [email protected] [email protected] [email protected] 36 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 37

Our team

Innovative projects

Yevhen MYKHAILO OLEKSANDR DMYTRO OLESIA BILYK NEVDAKHA KALITENKO YAKYMCHUK ARHYPSKA Project Manager Project Manager/ Analyst Expert in Governance Project Manager Coach (Monitoring tools) [email protected] [email protected] [email protected] [email protected] [email protected] Policy analysis program

IVAN LAKHTIONOV MARTA HOHOL Viktor TETIANA ARTEM TARAS Project Manager Legal Advisor PLAKHUTA SHEVCHUK DAVYDENKO YEMCHURA Project Manager/ Project Manager Analyst Analyst [email protected] [email protected] Secretary General artemdavydenko25@ tarasinformation@ viktor.plakhuta@ [email protected] gmail.com gmail.com NAKO Project transparency.org.uk

International relations and fundraising

OLENA Anastasiia Olha IRYNA KATERYNA KIFENKO KOZLOVTSEVA TYMCHENKO RYBAKOVA TSYBENKO Project Manager Fundraiser/ Manager of Communications Communications Manager Communications Manager International Relations Department Head Communications [email protected] [email protected] [email protected] [email protected] [email protected] 38 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 39

Our team

Finance

Serhii LIUDMYLA Heraskin KOSTENKO

Chief Financial Officer Accountant [email protected] [email protected]

TETIANA SASHA IVANOVA AKINSHEVA

Accountant Chief Translator [email protected] [email protected] Translations

OKSANA KATERYNA NESHKREBA RYZHENKO

Translator OfficeM anager [email protected] [email protected] 40 Annual report Transparency International Ukraine / 2016 Annual report Transparency International Ukraine / 2016 41

CONTACTS

CONTENTS

1.Our initiatives

Transparency International Ukraine’s website 1.1 Priority – Open and independent government ti-ukraine.org 1.2 Priority – Zero tolerance for corruption The website for a civil corruption fighter anticorruption.in.ua 1.3 Priority – Effective corruption fighters

2. Media about us

3. Our publications and researches

OUR PAGES IN SOCIAL MEDIA 4. Finance

www.facebook.com/ 5. Our Board TransparencyInternationalUkraine 6. Team twitter.com/TransparencyUA

https://goo.gl/VXbC5J 7. Contacts

CONTACTS

01024, Kyiv, provulok Kostia Hordiienka, the 1st floor

E-mail: [email protected]

Tel.: + 38 (0 44) 360 52 42 42 Annual report Transparency International Ukraine / 2016