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Quarterly Report Quarterly Report Quarter IV, 2015 (01 October – 31 December) Follow us: www.facebook.com/ BusinessOmbudsmanUkraine CONTENT CONTENT Foreword of the Business Ombudsman 4 Key figures for 2015 6 1 Complaint trends 8 1.1. Number of complaints received 8 1.2. The term of the preliminary review of complaints 8 1.3. Grounds for declining complaints 9 1.4. The term for complaint reviews 10 1.5. Geographical distribution of complaints received 10 1.6. Government agencies subject to the most complaints 11 1.7. Subject of complaints received 12 2 Closed cases and recommendations to government agencies 13 2.1. Information on closed cases 13 2.2. Recommendations issued 16 2.3. Follow-up of systemic reports of the previous quarters 23 3 Cooperation with stakeholders 33 3.1. Working visits 33 3.2. Cooperation with government agencies 34 3.2. Public outreach and communication 36 The BOC and the Council are used interchangeably throughout the text to refer to the Business Ombudsman Council. Advocating for business with the government 3 INTRODUCTION Dear Friends , It is my pleasure to present In the reporting quarter, the report of the Business conclusions and Colleagues, and Partners, Ombudsman Council of recommendations we Ukraine for the fourth quarter provided to the World Bank of 2015. As the report goes on on improving access to to show, we experienced the electric grids helped Ukraine’s exponential growth in terms positions in the reputable of received complaints, closed Doing Business rating rise cases, and the overall financial from 184th to 138th place. impact of our investigations. We recommended to reduce the number of the required In the fourth quarter, procedures for a business to the Council received 216 gain access to electric grids complaints: 10% increase in half, as well as contributed from the 197 complaints to drafting relevant legislation submitted in the previous that is currently being reporting quarter. In the reviewed by the Cabinet of current quarter, we also Ministers. successfully closed 119 cases: more than twice the The Council also worked number of cases closed in the jointly with respective previous reporting period. government bodies to The direct financial impact amend legislation regulating of all cases closed in 2015 is the following areas: over UAH 2.3 billion. compensations to employees drafted for military service; Our experts issued 98 cargo transportation to and recommendations to from the ATO zone; return governmental agencies in of train cars unloaded in the fourth quarter: 75% of the annexed territories all recommendations issued prior to the moratorium in the course of 2015. Of was imposed; import and all 131 recommendations export operations-related issued in 2015, 81% has execution, licensing, control, already been implemented and sanctions. I am happy (106). As for resolving to say that following our Ukraine’s systemic problems, efforts Ukrainian businesses we observed that our received over UAH 2 billion as recommendations helped compensation for employees achieve tangible results – Algirdas Šemeta mobilized for a specified term. to businesses in specific Business Ombudsman Other recommendations in industries and to Ukraine as the report are almost fully a whole. implemented. 4 www.boi.org.ua INTRODUCTION In the reporting quarter, we with the senior Ministry of working visit to Volyn Oblast, continued to expand our Justice officials in the expert the Governor’s Office offered cooperation with the key working group format. As a public assurance that it would government agencies that result, 10 complaints filed cooperate and its readiness have the strongest impact on by commercial entities to tackle corruption and Ukraine’s business climate – were reviewed: 7 regarding create favorable investment and the ones against whom enforcement and 3 regarding climate in the region. the most complaints have registration procedures. We been lodged. For instance, also agreed with the Ministry Following our goal to attract following signing of the representatives to carry out attention to serious issues Memoranda of Partnership in-service reviews regarding and show the real face of and Cooperation with the a slew of enforcement Ukrainian business, in this State Fiscal Service, the issues, as a result of which quarter we launched a media Ministry of Justice, and the guilty officials were subject project called “The Right to do State Regulatory Service, to disciplinary hearings for Business” together with the the Council held a series of violating the timeframes for Vlasnyky [Owners] program meetings aimed at stepping carrying out decisions. on Aristokraty [Aristocrats] up the efforts to further Radio and the Delo.ua cooperation. We also held three portal. Every Thursday, we working meetings with the set up discussions between Specifically, following signing State Regulatory Service businesses who have filed a Memorandum with the representatives, two of which complaints from all over State Fiscal Service, a series of involved the management of Ukraine and journalists. The meetings took place with the both institutions. Jointly we topics include doing business SFS management and experts. prepared an appeal to the and its ups and downs, I was happy to see that SFS Prime Minister of Ukraine how government agencies officials were open and ready about the need to maintain work with business, and to cooperate. We worked consistent policy positions the progress of reforms in with the SFS on complaints regarding the moratorium Ukraine. Over 4,000 listeners and agreed to implement the on business inspections and tune in to our live broadcast. recommendations contained the need for the regulators BOC podcasts and interviews in our systemic reports of to intensify efforts to are available for listening, the previous quarters. We revise licensing terms and reading and downloading. will definitely continue to conditions. expand our joint work at the I look forward to more regional level across Ukraine, I also continued my working opportunities to share to interact more closely with visit schedule, travelling to feedback and ideas as regional customs offices Cherkasy, Rivne, and Volyn to how we might help and to stimulate the SFS Oblasts, where I met with Ukrainian business develop departments to undertake business and government and conquer new markets, internal transformations and representatives. We discussed and restore public trust in reforms. the most urgent issues and constructive dialogue with the opportunities to improve government. Respectively, in the reporting the investment potential of quarter, we twice met these regions. Following my Advocating for business with the government 5 KEY FIGURES Key figures for 2015 585 164 complaints cases received from Ukrainian successfully entrepreneurs closed 131 recommendations 81% of recommendations provided to government already implemented agencies 99% being positive 3000+ and constructive media citations 6 www.boi.org.ua KEY FIGURES systemic reports publicized for The Cabinet 4 of Ministers’ consideration системний звіт Підключення до електропостачання СиСтемний звіт «Проблеми адміністрування податків для бізнесу в Україні» Жовтень 2015 Direct financial impact СИСТЕМНИЙ ЗВІТ Вибрані проблеми підприємницької діяльності, які безпосередньо пов’язані із воєнними діями на Сході України of BOC’s operations та анексією АР Крим липень 2015 СИСТЕМНИЙ ЗВІТ ПРОБЛЕМНІ ПИТАННЯ РЕГУЛЮВАННЯ ЗОВНІШНЬО-ЕКОНОМІЧНОЇ ДІЯЛЬНОСТІ В УКРАЇНІ UAH липень 2015 2.3 Жовтень 2015 billion regions of Ukraine visited the Business Ombudsman 9 with working visits Memoranda on Partnership and Cooperation 3 signed with government agencies staff being positive members and constructive 15 hired Advocating for business with the government 7 COMPLAINT TRENDS 1 Complaint trends 1.1. Number of complaints received During the reporting period, (Clause 5.3.1 (а) of Rules of Procedure) a total of 79 complaints was dismissed In the fourth quarter, for the following reasons the Business Ombudsman’s complaints: office received 216 57,4% 6% 36,6% 124 13 79 passed the preliminary complaints are complaints were declined review procedure and undergoing the as not fitting the eligibility are currently being preliminary review criteria set by the Rules of considered procedure Procedure 1.2. The term of the preliminary review of complaints (Clause 5.3.1 (b) of Rules of Procedure) During the reporting quarter, the Council’s decisions to consider or dismiss a complaint were made, on average, in 8 working days, two days less than the 10-day period provided in current regulations for the preliminary assessment of complaints. days less than 2 the 10-day period 8 www.boi.org.ua COMPLAINT TRENDS 1.3. Grounds for declining complaints (Clause 5.3.1 (с) of Rules of Procedure) During the reporting period, a total of 79 complaints IV III II The tendency Quarter Quarter Quarter was dismissed shows decrease for the following reasons: in the number The complaint did not comply with the other eligibility criteria 24% 11% 2% of complaints submitted that are The complaint submitted was subject to court or arbitral subject to court or proceedings, or in respect 13% 29% arbitral proceedings of which a court, arbitral or similar 16% type of decision was made and the ones where the party In the opinion of the Business Ombudsman, the complainant did not 9% 7% affected by the provide sufficient cooperation 16% alleged business Complaints arising malpractice has in the context not exhausted at of private-to-private 11% 7% 11% business relations least
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