Feedback from the public

ESR

2.4.1.5. Corporate governance standards have been introduced at public sector entities that are of strategic importance for the national economy and security or have the highest level of corruption risks, or are among the most important business entities in the defense industry (in particular, the right to terminate the contract with managers who violate anticorruption legislation or rules of ethical conduct has been established)

Problem solving:

2.4.1. The existing governance model at public sector entities is ineffective, resulting in losses and corruption

Deadlines for all measures within ESR

01.03.2023 - 31.12.2025

Implementation of SACP measures within ESR

Total number of measures – 8
2 1 1 4
Implemented Partially implemented In progress Not started

Implementation of SACP measures within the scope of the Problem by main main performers

Ministry of Economy of Ukraine

20%
5

National Agency on Corruption Prevention

100%
2

State authorities — subjects of management of state-owned objects

0%
1

Summarized general information on Measures

Name of the measure The main implementer Co-implementors Performance indicator Monitoring results (latest) Статус
1 2.4.1.5.1 Preparing an analytical report on the strategic assessment of corruption risks in the operations of a state-owned enterprise and identification of enterprises with the highest levels of corruption risks National Agency on Corruption Prevention The analytical report has been prepared and made public.
The measure was not implemented on time and in full
Implemented
2 2.4.1.5.2 Discussing the report indicated in subclause 2.4.1.5.1 with the participation of representatives of government agencies, NGOs, international organizations, participants of international technical assistance projects, and the academic community National Agency on Corruption Prevention The report has been discussed.
The measure was not implemented on time and in full
Implemented
3 2.4.1.5.3 Preparing an analytical report outlining the list of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry Ministry of Economy of Ukraine The analytical report has been prepared and made public.
There is no progress in the implementation of the measure
In progress
4 2.4.1.5.4 Discussing the report indicated in subclause 2.4.1.5.3 with the participation of representatives of government agencies, NGOs, international organizations, participants of international technical assistance projects, and the academic community Ministry of Economy of Ukraine The report has been discussed. Not started
5 2.4.1.5.5 Drafting and submitting to the Cabinet of Ministers of Ukraine the draft action plan to align the corporate governance system of business entities identified following the activities indicated in subclauses 2.4.1.5.1—2.4.1.5.4 with corporate governance standards of the Organization for Economic Cooperation and Development (hereinafter “the OECD”), which provides for, inter alia, the competitive selection of managers, heads of executive authorities, and members of supervisory boards of entities in the public sector of the economy, which has been suspended due to the institution of martial law, for the period beginning with 2023 Ministry of Economy of Ukraine The action plan has been approved by the Cabinet of Ministers of Ukraine. Not started
6 2.4.1.5.6 Preparing the annual report (within the 1st quarter of the year) on the progress made in implementing the action plan to align the corporate governance system of specific business entities with corporate governance standards of the OECD (including for the period of 2021 and 2022), which should include recommendations on revising the aforementioned action plan (if needed)Preparing the annual report (within the 1st quarter of the year) on the progress made in implementing the action plan to align the corporate governance system of specific business entities with corporate governance standards of the OECD (including for the period of 2021 and 2022), which should include recommendations on revising the aforementioned action plan (if needed) Ministry of Economy of Ukraine The report has been prepared and made public.
Implementation of the measure has not started
Not started
7 2.4.1.5.7 Preparing the legal framework that would provide for the possibility of early termination of contracts with managers exercising the powers of a one-person executive body, or with members of a collective executive body of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry, if such individuals have committed gross violations of the requirements of anticorruption legislation or the code of ethics Ministry of Economy of Ukraine Національне агентство з питань запобігання корупції The legal framework has been prepared.
The measure was implemented on time, but partially
Partially implemented
8 2.4.1.5.8 Amending the existing contracts with managers exercising the powers of a one-person executive body, or with members of a collective executive body of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry, if such individuals have committed gross violations of the requirements of anticorruption legislation or the code of ethics State authorities — subjects of management of state-owned objects The contracts have been amended. Not started

Indicators of achievement of ESR

Total number of indicators – 5

Indicators fully achieved – 0

Partially achieved indicators – 0

Indicators with a score of 0% – 5

Summarized general information about Achievement Indicators

Indicators Weight (%)
1 An analytical report has been published, outlining the list of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry. 15%
2 The action plan to align the corporate governance system of specific business entities with corporate governance standards of the OECD for the period beginning with 2023 (which also provides for the competitive selection of managers, heads of executive authorities, and members of supervisory boards of entities in the public sector of the economy, which has been suspended due to the institution of martial law) has been published. 10%
3 The action plan to align the corporate governance system of specific business entities with corporate governance standards of the OECD has been completed by 100 percent. 40%
4 Contracts with managers exercising the powers of a one-person executive body, or with members of a collective executive body of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry, provide for the right to terminate them if such individuals have committed gross violations of the requirements of anticorruption legislation or the code of ethics. 5%
5 at least 80 percent of experts on the regulation of the economy and businesses estimate that:
a) defines the list of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry is substantiated (10 percent);
b) the action plan to align the corporate governance system of specific business entities with corporate governance standards of the OECD covers the essential aspects and provides for the essential measures (10 percent);
c) the corporate governance systems of state-owned enterprises of strategic importance for the nation’s economy and security or those with the highest level of corruption risks or enterprises that are the most critical business entities in the defense industry are aligned with OECD corporate governance standards in practice (10 percent).
30%

Key sources of assessment:

Additional sources of information: