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HOT ANTICORRUPTION NEWS / Issue #124
November 15, 2019
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Today's issue:
 
- NABU detained suspects in the VAB Bank case;
- MPs give a chance to a fair relaunch of the State Bureau of Investigations;
- recent Supreme Court decisions raise concerns;
- Parliamentary Committee left the future Bureau of Financial Investigations without an effective competitive selection of its head;
- recommended reading

 
NABU detained suspects in the VAB Bank case


On November 11, NABU and SAPO detained former deputy head of the National Bank of Ukraine Oleksandr Pysaruk along with six other people suspected of embezzling a 1,2 billion UAH (~$49 million) stabilization loan granted by the NBU to the PJSC "VAB Bank" in 2014.

VAB Bank is owned by a tycoon Oleg Bakhmatyuk, who is currently hiding abroad to avoid the prosecution. A notice of suspicion was announced to Bakhmatyuk in absentia. 

According to NABU, stabilization loan funds were simply withdrawn through various schemes, and ordinary depositors of the bank could not take back their deposits. More details about the investigation are available here

 
On 15 November, the High Anti-corruption Court decided on the preventive measure for Pysaruk. He has to pay the bail of UAH 5 million (approx. $200,000), stay in Kyiv, return passports for international travel, wear an electronic bracelet, and refrain from the communication with other suspects.

More details about the case from NABU. 
MPs give a chance to a fair relaunch of the State Bureau of Investigations

On November 13, the Parliamentary Committee on Law Enforcement considered the draft law #2116 on improving the work of the State Bureau of Investigations. The main take out of the hearing is that MPs approved amendments that will allow the dismissal of its director, Roman Truba, and a fair selection of the next head of the SBI.

In the recent blog, we have explained that the draft law enhances the role and influence of the director of the SBI giving him the power to dismiss his deputies and appoint them without competition, create new units, transfer employees without competition, and remove restrictions regarding the number of the staff. Giving those powers to Roman Truba, who proved to be politically dependent and tainted with numerous corruption scandals, would have failed the relaunch of the SBI from the start.
Recent Supreme Court decisions raise concerns

In the course of this week, the Supreme Court of Ukraine has made two decisions that in their core aimed at protection of corrupt officials. The first case concerns refusal to see the case on the suspension of judges of the District Administrative Court of Kyiv (OASK) prosecuted for alleged corruption offences. With the other one, the Court prohibited NABU to publicly name the top officials prosecuted for corruption.

On November 11, the Cassation Administrative Court within the Supreme Court considered two appeals brought by the PGO on the decisions of the High Council of Justice (HCJ) regarding the suspension of OASK judges caught discussing their corrupt actions on now-infamous recordings. The HCJ refused to suspend three judges - Pavlo Vovk, Igor Pogribnichenko and Ivan Shepitko, who conspired to obstruct and illegally influence the decisions of the High Qualification Commission of Judges of Ukraine.

The PGO tried to appeal the decision of the HCJ to the Supreme Court. However, the latter closed the proceeding stating that the PGO does not have the right to appeal the HCJ’s decisions. This means that for now on those tainted OASK judges will keep their positions and serving their own interests instead of serving justice.

The PGO believes that the Supreme Court acted in conflict of interest. The PGO may try to appeal the decision to the Grand Chamber of the Supreme Court. The more details on the Court’s dubious reasoning will be known once the full text of the decision is available next week.

On November 13, the Cassation Civil Court within the Supreme Court obliged NABU to delete from its site the article on the criminal case of ex-MP Mykola Martynenko, accused of embezzling about UAH 700 million from the state-owned company.

Although his case is already in the stage of a public trial, Martynenko demanded that the information on NABU website in the article “Martynenko Case” violated his non-proprietary rights to use of his name and harmed his business reputation. The Supreme Court stated that the person can only be named with regard to a certain criminal case only after the final court verdict. In its absurd decision, the Supreme Court actually recognized that the private interest of the accused public person in a particularly grave crime of (in this case, Martynenko) was above the public interest to know the name of the alleged perpetrator. 

Such a decision undermines the right of citizens to information about alleged criminals and public officials suspected of stealing hundreds of millions. It is a dangerous precedent for the freedom of speech in Ukraine as a position of Supreme Court is obligatory for all other courts. It means that all other suspects of NABU cases have strong ground to sue the media and private citizens forbidding to mention their names with regard to any criminal investigation, even the ones that are already publicly trialled. For instance, Martynenko also sued AntAC on the same grounds. The case awaits the final decision of the Supreme Court.

Parliamentary Committee left the future Bureau of Financial Investigations without an effective competitive selection of its head

On November 12, the Parliamentary Committee on Finance, Tax and Customs considered the draft law #1208-2 on establishing the Bureau of Financial Investigations before the second reading.

Despite the last week's agreement to secure the transparent and competitive selection of the Bureau's head with the participation of international experts, the MPs rejected the respective amendment.

Also, the draft law does not provide for the liquidation of so-called "economic departments" of the Security Service of Ukraine securing it the instruments to further influence the businesses. Thus, even before the establishment, the Bureau of Financial Investigations does not deliver its key goal of diminishing the pressure on the business. 

Recommended Reading 
 
Copyright © *2019* Anti-corruption Action Centre*, All rights reserved.

Should you have any questions or comments please contact Olena Halushka at: ohalushka@antac.org.ua

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