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SUPPORT to ANTI-CORRUPTION CHAMPION INSTITUTIONS (SACCI) PROJECT in UKRAINE October 1, 2019 – December 31, 2019

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SUPPORT to ANTI-CORRUPTION CHAMPION INSTITUTIONS (SACCI) PROJECT in UKRAINE October 1, 2019 – December 31, 2019 PHOTOCREDIT: ULYANA RUDYCH FOR USAID PROGRESS REPORT SUPPORT TO ANTI-CORRUPTION CHAMPION INSTITUTIONS (SACCI) PROJECT IN UKRAINE October 1, 2019 – December 31, 2019 This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Management Systems International, Inc., a Tetra Tech Company, and do not necessarily reflect the views of USAID or the United States Government. This document was prepared by Management Systems International, A Tetra Tech Company, for the “Support to Anti-Corruption Champion Institutions” (SACCI) Project, USAID Contract AID-121-C-17- 00003. CONTENTS ACRONYMS AND ABBREVIATIONS ........................................................................................................ II CONTEXT UPDATE ...................................................................................................................................... 1 EXECUTIVE SUMMARY ................................................................................................................................. 4 KEY NARRATIVE ACHIEVEMENTS............................................................................................................ 8 CROSSCUTTING ACTIVITIES ................................................................................................................................................. 8 OBJECTIVE 1: KEY GOVERNMENT INSTITUTIONS EMPOWERED TO FIGHT CORRUPTION ................... 11 OBJECTIVE 2: PUBLIC SUPPORT FOR AND ENGAGEMENT IN ANTI-CORRUPTION EFFORTS INCREASED ................................................................................................................................................................................. 18 OBJECTIVE 3: PUBLIC TOLERANCE OF CORRUPT PRACTICES REDUCED ...................................................... 22 PROGRESS AGAINST TARGETS ..............................................................................................................26 PERFORMANCE MONITORING, EVALUATION, AND LEARNING .............................................26 LESSONS LEARNED .....................................................................................................................................26 ENVIRONMENTAL MONITORING .........................................................................................................27 PROGRESS ON LINKS TO OTHER ACTIVITES ...................................................................................27 PROGRESS ON LINKS TO HOST GOVERNMENT ............................................................................28 PROGRESS ON INCLUSIVE DEVELOPMENT .......................................................................................28 FINANCIAL INFORMATION .....................................................................................................................28 SUB-AWARD DETAILS ................................................................................................................................28 ADMINISTRATION ACTIVITIES ...............................................................................................................28 CONSTRAINTS AND CRITICAL ISSUES ........................................................................................................................... 28 PERSONNEL ................................................................................................................................................................................ 28 CONTRACT, AWARD, OR COOPERATIVE AGREEMENT MODIFICATIONS AND AMENDMENTS ........ 29 STATUS OF DELIVERABLES/MILESTONES........................................................................................................................ 29 ATTACHMENTS ............................................................................................................................................32 ANNEX 1. PUBLIC OUTREACH DOCUMENTS ..................................................................................33 USAID/Ukraine – Support to Anti-Corruption Champion Institutions (SACCI) Program | Quarterly Progress Report i ACRONYMS AND ABBREVIATIONS ACCP Anti-Corruption Council under the President ACU Accounting Chamber of Ukraine AnTAC Anti-Corruption Action Center APS Annual Program Statement AU Authorized Unit AWP Annual Work Plan BRDO Better Regulations Delivery Office CAP Committee on Anti-Corruption Policy CMU Cabinet of Ministers of Ukraine COI Conflict of Interest CoST Construction Sector Transparency Initiative CRA Corruption Risk Assessment CSO Civil Society Organization ENGAGE Enhance Non-Governmental Actors and Grassroots Engagement EUACI EU Anti-Corruption Initiative GOU Government of Ukraine GRECO Group of States against Corruption HACC Higher Anti-Corruption Court HICD Human and Institutional Capacity Development IACD International Anti-Corruption Day IDP Internally Displaced Person IG Inspector General IIFA Institutional Integrity Framework Assessment MDT Ministry for Digital Transformation MIU Ministry of Infrastructure MOH Ministry of Health NABU National Anti-Corruption Bureau NAPC National Agency for Prevention of Corruption NaUKMA National University of Kyiv-Mohyla Academy OCCRP Organized Crime and Corruption Reporting Project OPU Office of the President of Ukraine USAID/Ukraine – Support to Anti-Corruption Champion Institutions (SACCI) Program | Quarterly Progress Report ii OSA Oblast State Administration POC Public Oversight Council RC Regional Coordinators SAIUP Strengthening Academic Integrity in Ukraine Project SCMU Secretariat of the Cabinet of Ministers SMM Social Media Marketing SOE State-Owned Enterprise SOSA Sumy Oblast State Administration SBI State Bureau of Investigations TAC Together Against Corruption TAPAS Transparency and Accountability in Public Administration and Services TIU Transparency International Ukraine TOR Terms of Reference UAL Ukraine Leadership Academy UCMC Ukrainian Crisis Media Center UCU Ukrainian Catholic University VRU Verkhovna Rada of Ukraine WCH White Collar Hundred USAID/Ukraine – Support to Anti-Corruption Champion Institutions (SACCI) Program | Quarterly Progress Report iii CONTEXT UPDATE Over the past six months, Ukraine has embarked on a new political course and has seen rapid domestic governance and legislative reform developments. International political developments—namely, those emanating from the U.S. government executive branch, have also had dramatic political implications for Ukraine. Both domestic and international events have had a significant impact on Ukraine’s governance systems and on the dynamics of anti-corruption work. In the wake of a dramatic presidential election campaign, Ukraine’s snap parliamentary elections brought a landslide victory for the presidential party, Sluha Narodu (Servant of the People), and—for the first time in Ukraine’s history—gave rise to a single-party majority in the legislature. Shortly thereafter, in August 2019, a new Cabinet of Ministers of Ukraine (CMU) was formed with only two ministers from the previous CMU retaining their offices (Minister of Finance Oksana Markarova and Minister of Internal Affairs Arsen Avakov). The CMU has positioned itself as a force of young reformers—indeed, Ukraine has one of the youngest governments in Europe and has promised a mix of liberal reforms and speedy economic development in the years to come. The new government’s program, for instance, set a goal of increasing GDP by 40 percent under this cabinet as one of its key performance indicators. The subsequent adoption of the annual state budget has demonstrated, though, that rapid economic growth would be unlikely, given the current volume of national debt, the schedule for its management, and the chilling effect of Ukraine’s GDP warrants on growth. At the same time, positive signals sent by the IMF on a new, three-year, $5.5 billion conditional arrangement under the Extended Fund Facility are encouraging signs for macrofinancial stability throughout 2020. July to December 2019 could be characterized as the most intensive honeymoon period in Ukraine’s last seven years in terms of trust and positive attitudes toward the president and his political party in Parliament or Verkhovna Rada of Ukraine (VRU). However, given that Parliament must now make crucial decisions on divisive issues (first and foremost, agricultural land sales) and the illusory unity of the presidential faction, the legislature may see a drop in trust levels as 2020 unfolds. Further, the “stalemate” aftermath of the Normandy Summit (albeit with positive developments on prisoner exchanges) and the accumulated fatigue of a population that is weary of war, coupled with a lack of palpable results on corruption-related investigations, could bring about the end of this honeymoon as early as spring 2020. The last six months have been rich in public outcry–causing events: alleged bribery in Parliament, leaked personal correspondence of the Deputy Minister of Infrastructure, and a Sluha Narodu MP allegedly giving instructions to local police in Kryvyi Rih. More situations like these are expected in the near future. Against this backdrop, the latest polling has registered a significant decline in perceived popularity/trust in the president (from 73 percent in September to 52 percent at the end of November) that later on rebounded significantly as a result of the Normandy Summit to 67 percent (mid-December) when fears of Government of Ukraine capitulation
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