ANTI-CORRUPTION SCHOOL FOR CIVIC ACTIVISTS QUARTERLY PROGRESS REPORT SUPPORT TO ANTI-CORRUPTION CHAMPION INSTITUTIONS (SACCI) PROJECT IN UKRAINE April 1 – June 30, 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 ................................................................................................................................. 2 KEY NARRATIVE ACHIEVEMENTS............................................................................................................ 5 CROSSCUTTING ACTIVITIES ................................................................................................................................................. 5 OBJECTIVE 1: KEY GOVERNMENT INSTITUTIONS EMPOWERED TO FIGHT CORRUPTION ..................... 7 OBJECTIVE 2: PUBLIC SUPPORT FOR AND ENGAGEMENT IN ANTI-CORRUPTION EFFORTS INCREASED ................................................................................................................................................................................. 16 OBJECTIVE 3: PUBLIC TOLERANCE OF CORRUPT PRACTICES REDUCED ...................................................... 20 PROGRESS AGAINST TARGETS ..............................................................................................................26 PERFORMANCE MONITORING, EVALUATION, AND LEARNING .............................................26 LESSONS LEARNED .....................................................................................................................................26 ENVIRONMENTAL MONITORING .........................................................................................................27 PROGRESS ON LINKS TO OTHER ACTIVITIES ..................................................................................27 PROGRESS ON INCLUSIVE DEVELOPMENT .......................................................................................27 FINANCIAL INFORMATION .....................................................................................................................27 SUB-AWARD DETAILS ................................................................................................................................28 ADMINISTRATION ACTIVITIES ...............................................................................................................28 ATTACHMENTS ............................................................................................................................................31 ANNEX 1. STATUS OF DELIVERABLES/MILESTONES .......................................................................32 USAID/Ukraine – Support to Anti-Corruption Champion Institutions (SACCI) Program | Quarterly Progress Report i ACRONYMS AND ABBREVIATIONS ATC Amalgamated Territorial Community AU Authorized Unit AWP Annual Work Plan CCU Constitutional Court of Ukraine CIH Civic Initiative of Halychyna CMU Cabinet of Ministers of Ukraine CPLR Center for Policy and Legal Reform CSO Civil Society Organization CoST Construction Sector Transparency Initiative DOBRE Decentralization Offering Better Results and Efficiency ENGAGE Enhance Non-Governmental Actors and Grassroots Engagement GAO U.S. Governmental Accountability Agency GOU Government of Ukraine HACC High Anti-Corruption Court HRS Health Reform Support IDP Internally Displaced Person IIFA Institutional Integrity Framework Assessment MIP Ministry of Information Policy MIU Ministry of Infrastructure of Ukraine MES Ministry of Education and Science MOH Ministry of Health MOU Memorandum of Understanding MRD Ministry of Regional Development MSI Management Systems International MSP Ministry of Social Policy MYP Ministry of Youth and Sports NABU National Anti-Corruption Bureau of Ukraine NACCS National Anti-Corruption Communication Strategy NACS National Academy of Civil Service NAPC National Agency for the Prevention of Corruption NDI National Democratic Institute USAID/Ukraine – Support to Anti-Corruption Champion Institutions (SACCI) Program | Quarterly Progress Report ii NHSU National Health Service of Ukraine NPCG National Principles of Corporate Governance OPU Office of the President of Ukraine OSA Oblast State Administration PEA Political Economy Analysis RPR Reanimation Package of Reforms SACCI Support to Anti-Corruption Champion Institutions SAEG State Agency for E-Governance SAIUP Strengthening Academic Integrity in Ukraine Project SAPO Specialized Anti-Corruption Prosecutor's Office SCMU Secretariat of the Cabinet of Ministers of Ukraine SMM Social Media Marketing SOSA Sumy State Oblast State Administration TAC Together Against Corruption TIU Transparency International Ukraine UCMC Ukrainian Crisis Media Center UCU Ukrainian Catholic University ULA Ukraine Leadership Academy UNDP United Nations Development Programme USAID United States Agency for International Development USG United States Government UShU Ukraine School of Governance VRU Verkhovna Rada of Ukraine USAID/Ukraine – Support to Anti-Corruption Champion Institutions (SACCI) Program | Quarterly Progress Report iii CONTEXT UPDATE The Support to Anti-Corruption Champion Institutions (SACCI) program in Ukraine is funded by the United States Agency for International Development (USAID) and implemented by Management Systems International (MSI), a Tetra Tech company. The overall purpose of the SACCI project is to reduce corruption and increase accountability and transparency of governance in Ukraine through three primary objectives: 1) key government institutions empowered to fight corruption; 2) public support for and engagement in anti-corruption efforts increased; and 3) public tolerance for corrupt practices reduced. This quarterly progress report covers SACCI’s activities from April 1 to June 30, 2019. The anti-corruption sphere in Ukraine was dominated by presidential candidate rhetoric that emphasized corruption issues throughout the reporting period. With Volodymyr Zelenskiy’s surprise landslide victory, Ukrainian citizens overwhelmingly expressed their frustration with the previous leadership’s insufficient progress on addressing corruption in the country. Immediately after his inauguration, the newly elected president passed a decree to dissolve the Verkhovna Rada of Ukraine (VRU) and announced snap parliamentary elections. Although 62 lawmakers questioned the legality of the president’s decree and appealed to the Constitutional Court, the court upheld the decree and the early election was confirmed for July 21, 2019. Also, the new Office of the President of Ukraine (OPU), formerly known as the Administration of the President of Ukraine, shared its vision for anti-corruption reforms with SACCI, USAID, and other donors. The agenda includes enhancing the asset declaration system, ensuring the independence of anti- corruption institutions, strengthening e-service systems, introducing seizure practices for ill-gotten assets, and implementing whistleblower protection measures through new legislation anticipated to be brought forth after parliamentary elections in July 2019. Additionally, the new OPU suggested that it may prioritize reform of the National Agency for the Prevention of Corruption (NAPC). President Zelenskiy began delivering on his election promises by submitting a draft law that would restore criminal liability for illicit enrichment. However, it is not expected that new legislation or reforms will be enacted before the parliamentary elections. At the institutional level, 35 judges were selected to the Higher Anti-Corruption Court (HACC), and its head was also appointed. HACC is expected to launch in September 2019 although an issue involving the court’s premises has not been resolved. NAPC performance and leadership composition remained unchanged during the reporting period, while the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO) have significantly toned down their rivalry since the culmination of the presidential election period. Against this backdrop, SACCI continued assisting partner institutions at the national and local levels to implement corruption prevention measures. The project also continued engaging citizens and youth in anti-corruption activities and promoting effective communications that appeal to citizen values. 1 | USAID/Ukraine – Support to Anti-Corruption Champion Institutions Program | Quarterly Progress Report usaid.gov EXECUTIVE SUMMARY KEY NARRATIVE ACHIEVEMENTS SACCI tracked and evaluated political developments in the anti-corruption sphere through an updated political economy analysis, meetings with stakeholders, and analyses of draft regulations. SACCI also continued producing a weekly media monitoring analysis on health care reform issues to better inform key GOU stakeholders