Problem

2.4.2. Insufficient transparency of privatization procedures and failure by buyers to comply with the terms of the sale of the privatized asset

General information about the problem

There is a need to analyze and take into account in the practice of privatization authorities the most common problems that arise at the stage of fulfilling the mandatory conditions for the sale or operation of a privatized asset.
Small-scale privatization and leasing of state and municipal property is carried out using an electronic system administered by the state enterprise Prozorro.Sale. At the same time, the problem of low competition at property lease auctions remains unresolved. There is also a need to make property lease procedures more professional. The transparency and efficiency of the procedures can be improved by ensuring data exchange between electronic systems used for the lease of state property.
At the same time, there is a need to legislatively define the list of state-owned property that is not subject to privatization.
Problem 2.4.3. The insufficient scope of publicly available information about business entities in which the state has an ownership stake significantly reduces the transparency of their activities, complicates public control and fosters corruption.
Despite the introduction of requirements for disclosure of financial and non-financial information about the activities of state-owned and municipally owned enterprises, compliance with such requirements remains problematic in practice. There are no effective, proportionate, deterrent sanctions for non-compliance with the established requirements. Information is often published in different scopes, formats and on different platforms, which makes it difficult to analyze (including using modern technologies). Existing registers and databases remain incomplete, the scope of information provided is limited, and the methods of ensuring such access are outdated. Different information platforms lead to duplication of data, fragmentation or even discrepancies in data from different sources.
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Implementation of SACP measures within the limits of the problem

The total number of OSR – 3
All measures of the SACP
measures, the implementation of which as of 31.03.2024
is about to begin to be completed
1 2 4 3
10
Implemented In progress Not implemented Not started
Measures implemented (fully and partially) - 1 (10%)

Deadlines for all measures

01.03.2023 - 31.12.2025

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

State Property Fund of Ukraine

16.7%
6

Ministry of Economy of Ukraine

0%
4

Achievement of ESR within the limits of the Problem

The total number of OSR – 3

SUMMARIZED GENERAL INFORMATION ON THE IMPLEMENTATION OF THE PROGRAM MEASURES IN TERMS OF DIRECTIONS, PROBLEMS AND EXPECTED STRATEGIC RESULTS

Name of the ESR Name of the measure The main implementer Monitoring results (latest) Performance note % виконаних заходів (fully and partially)
1.1. ESR 2.4.2.1 Instruments have been put in place to prevent the negative impact of privatization authorities and organizers of privatization auctions on the number of bidders and competition. 2.4.2.1.1. Supporting the consideration in the Parliament of Ukraine (particularly if the President of Ukraine vetoes the draft law) of the draft law on the list of facilities under state ownership that are ineligible for privatization (registration number 4020 dated September 2, 2020), which defines the list of facilities under state ownership that are ineligible for privatization Ministry of Economy of Ukraine There is no progress in the implementation of the measure In progress
100% 2/ 2
1.2. 2.4.2.1.2. Drafting and submitting to the Cabinet of Ministers of Ukraine the draft resolution of the Cabinet of Ministers of Ukraine on approval of the Procedure for Holding Electronic Auctions to Sell Assets of Major Privatization and Choosing the Winning Bidder Based on the Outcome of the Electronic Auction State Property Fund of Ukraine The measure was implemented on time and in full Implemented
2.1. ESR 2.4.2.2 The most common problems encountered in the performance by buyers of the mandatory conditions of the sale and/or operation of a privatized asset have been assessed; the findings of this assessment have been factored into the practices of privatization authorities 2.4.2.2.1. Preparing an analytical report on the most common problems encountered in the performance by buyers of the mandatory conditions of the sale and/or operation of a privatized asset State Property Fund of Ukraine The measure has not been implemented Not implemented
0% 0/ 3
2.2. 2.4.2.2.2. Discussing the report indicated in subclause 2.4.2.2.1 with the participation of representatives of government agencies, NGOs, international organizations, participants of international technical assistance projects, and the academic community State Property Fund of Ukraine Not started
2.3. 2.4.2.2.3. Eliminating the most common problems encountered in the performance by buyers of the mandatory conditions of the sale and/or operation of a privatized asset State Property Fund of Ukraine Not started
3.1. ESR 2.4.2.3 Small-scale privatization or lease of state and municipal property is carried out using the electronic system Prozorro.Sale and in compliance with the principles of fair competition 2.4.2.3.1. Preparing an analytical report on the causes of low competition during state or municipal property lease auctions Ministry of Economy of Ukraine The measure has not been implemented Not implemented
0% 0/ 5
3.2. 2.4.2.3.2. Discussing the report indicated in subclause 2.4.2.3.1 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 measure has not been implemented Not implemented
3.3. 2.4.2.3.3. Eliminating the discovered causes of low competition during state or municipal property lease auctions Ministry of Economy of Ukraine Implementation of the measure has not started Not started
3.4. 2.4.2.3.4. Developing and approving the procedure of data exchange between the Prozorro.Sale electronic system and the online platform for managing rent of state property with respect to property that has been or is being rented out State Property Fund of Ukraine The measure has not been implemented Not implemented
3.5. 2.4.2.3.5. Ensuring data exchange and interoperability between the Prozorro.Sale electronic system and the online platform for managing rent of state property with respect to property that has been or is being rented out State Property Fund of Ukraine Implementation of the measure has started on time In progress

Key sources on the state of the problem:

Assessment of the situation by international monitoring mechanisms and organizations: