UKROBORONPROM AND NABU WILL JOINTLY FIGHT CORRUPTION IN DEFENSE SECTOR

Ukroboronprom State Company and the National Anti-Corruption Bureau of Ukraine will cooperate in the field of preventing and combating corruption, as well as other crimes under investigation by NABU, in the field of management of state-owned enterprises in the defense industry.

The relevant Memorandum of Cooperation and Information Exchange between the institutions was signed by the Acting Director General of Ukroboronprom SC Ihor Fomenko and the Director of the National Anti-Corruption Bureau of Ukraine Artem Sytnyk.

"We strive to make the defense sector, which has historically been considered one of the most corrupt in Ukraine, transparent and accountable. For us, the signing of the Memorandum with the NABU is a logical step in implementing the corporate security policy of Ukroboronprom, aimed at creating zero tolerance for law violations. During the year of our work, we have done a lot in this direction: Ukroboronprom’s Corruption Contacting Policy has been implemented; our purchases, as well as the sale and lease of the Concern’s surplus assets have been proactively transferred to the Prozorro website. Our management team voluntarily passes polygraph once a year; we are also interested in involving NABU specialists in the selection of  the candidates for management positions at defense enterprises – with the use of the polygraph as well. Besides, the first pilot forensic audit of the Antonov Company has been recently completed and its results have been submitted to the NABU and Security Service of Ukraine. We break "schemes" in defense every day, and in response we receive a number of paid publications against us. This reaction is the best assessment of our work," said Acting General Director of Ukroboronprom Igor Fomenko.

Artem Sytnyk stressed that NABU and Ukroboronprom have a common task – to prevent and combat corruption in the defense sector: "This is not the beginning, but a logical continuation of our cooperation, we hope that it will be systematic, because the work of anti-corruption bodies is still opposed. We are ready to identify the most problematic points in the work of Ukroboronprom, where an immediate response from law enforcement agencies is needed, and we will provide all possible support from our side," the NABU Director stressed.

Thanks to the anti-corruption measures implemented in Ukroboronprom, the number of violations in the Concern has significantly decreased over the year, as evidenced by the statistics of open criminal proceedings. Thus, in 2019, 27 criminal proceedings for abuse of procurement were opened, in 2020 – only 5. In the field of foreign economic activity in 2019 – 39 criminal proceedings were opened, in 2020 – 29. In total, in 2019, all law enforcement agencies registered 248 proceedings, and in 2020 – 149.

"We consider it our duty to provide all possible assistance to NABU in conducting pre-trial investigations. We expect that the agreements reached today will be an important step to improve the mechanism of bringing to justice those responsible for causing damage to defense companies, " Igor Fomenko added.

Over the past year, Ukroboronprom has reset relations with law enforcement agencies, making them more transparent and effective. Thus, in November 2019, Ukroboronprom initiated the meeting with representatives of the law enforcement agencies of Ukraine (NABU, SIB, NPU, SSU, SFSU) to strengthen cooperation and assistance in the investigation of criminal and corruption violations during the previous years of the Company’s operation. Since then, Ukroboronprom has been cooperating with law enforcement agencies and proactively providing them with information on detected violations.