09 December 2015, 11:56
The draft law No. 2376 offers to determine peculiarities of the transfer and work of a remedial bank with assets being alienated by state banks and banks, where the State took part in the capitalization.
The Committee believes that the following contain corruptogenic factors.
A novelty of Section 3 of Article 4 "Functioning and operations of remedial bank." According to the requirements of Section 3 of Article 22, Article 41 of the Constitution of Ukraine, during the adoption of new laws or making amendments to the laws in effect it is not allowed to contract the content and scope of existing rights and freedoms, and it provides for the right of every person to own, use and dispose their property. No one can be deprived of his property except in the public interest and under the conditions envisaged by the Law and general principles of international law.
In Article 6 of the draft law "Peculiarities of accounting and financial reporting of a remedial bank" among the novelties is absent clear requirement to keeping such accounting and financial reporting in accordance with international standards. The Committee believes that this legislative initiative contradicts the current wording of Section 1 of Article 68 of the Law of Ukraine "On Banks and Banking" and the current wording of Section 3 of Article 6 of the Law of Ukraine "On Accounting and Financial Reporting in Ukraine," which read that banks organize accounting in accordance with the international financial reporting standards.
An initiative put forward in Section 8 of Article 4, and Section 4 of Article 6 of the draft law does not regulate the administrative procedure concerning clear order of the bank's work with assets and envisages that financial activity (costs related to the work of a remedial bank with assets) is set by a remedial bank independently and only coordinated with the Ministry of Finance of Ukraine. As the Committee members noted, it may become a prerequisite for inappropriate (ineffective) use of budget funds and possible committing of corruption offenses by officials of the said ministry and the bank.