Direction 2.4.
Public and private sectors of the economy
24%
6 /
25
0.0%
Problem 2.4.1.
The existing governance model at public sector entities is ineffective, resulting in losses and corruption
24%
6 /
25
0.0%
1.1
ОСР
2.4.1.1.
The principles of state ownership policy approved by the Cabinet of Ministers of Ukraine are periodically updated and consistently implemented in practice by entities that perform the functions of the owner of public sector entities
2.4.1.1.1 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft law that proposes to provide for:
1) the adoption of the State Ownership Policy by the Cabinet of Ministers of Ukraine;
2) the development and adoption of individual ownership policies at state-owned enterprises;
3) the requirements for the contents of the relevant ownership policies (in particular, they must outline the objectives of state ownership, the key tasks of state-owned companies, and principal kinds of business, and performance indicators).
Ministry of Economy of Ukraine
The measure was implemented on time, but partially
Partially implemented
20%
1 /
5
0.0%
1.2
2.4.1.1.2 Drafting and submitting to the Cabinet of Ministers of Ukraine the draft State Ownership Policy
Ministry of Economy of Ukraine
Implementation of the measure has started on time
In progress
1.3
2.4.1.1.3 Preparing drafts of individual ownership policies for at least 15 of the largest (in terms of the cumulative value of assets) enterprises under state ownership, which are of strategic importance for the national economy and security
Authorized management bodies
Not started
1.4
2.4.1.1.4 Holding consultations with stakeholders regarding the drafts of individual ownership policies indicated in subclause 2.4.1.1.3, obtaining expert opinions
Authorized management bodies
Not started
1.5
2.4.1.1.5 Revising the drafts of individual ownership policies indicated in subclause 2.4.1.1.3 (if needed), approving and making them public
Authorized management bodies
Not started
2.1
ОСР
2.4.1.2.
The functions of the owner, the regulator, and the agency shaping the policy applicable to business entities in the public sector of the economy have been segregated
2.4.1.2.1 Preparing an analytical report containing analysis of:
1) international standards and best practices in matters of segregation of the functions of the owner, the regulator, and the agency shaping the policy applicable to business entities in the public sector of the economy;
2) the relevant international experience in matters of segregation of the functions of the owner, the regulator, and the agency shaping the policy applicable to business entities in the public sector of the economy;
3) the national context of the operations of business entities in the public sector of the economy and segregation of the functions of the owner, the regulator, and the agency shaping the policy applicable to business entities in the public sector of the economy;
4) the feasibility and expediency of creating a centralized body for coordination of ownership;
5) the operating principles of the administration of the centralized ownership coordination authority, particularly as a way to prevent it from being subjected to political influence (if creating the administration of the centralized ownership coordination authority has been found to be expedient)
Ministry of Economy of Ukraine
Implementation of the measure has started on time
In progress
0%
0 /
3
0.0%
2.2
2.4.1.2.2 Discussing the report indicated in subclause 2.1.3.2.2 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
Not started
2.3
2.4.1.2.3 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft law proposing to segregate the functions of the owner, the regulator, and the policymaking agency with respect to business entities in the public sector of the economy, taking into account the outcomes of the activities indicated in subclauses 2.4.1.2.1 and 2.4.1.2.2
Ministry of Economy of Ukraine
Not started
3.1
ОСР
2.4.1.3.
An annual independent audit of public sector entities that are of strategic importance to the economy and security of the state has been introduced; periodic revision of the criteria for mandatory independent audits and the establishment of supervisory boards at public sector entities, including taking into account the level of corruption risks and the degree to which the relevant sector of the economy is affected by corruption
2.4.1.3.1 Preparing an analytical report for a substantiated definition of the criteria for a mandatory independent audit of enterprises under state ownership or establishing a mandatory independent audit for all state-owned enterprises without exception
Ministry of Economy of Ukraine
The measure was not implemented on time and in full
Implemented
20%
1 /
5
0.0%
3.2
2.4.1.3.2 Discussing the report indicated in subclause 2.4.1.3.1 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
2.4.1.3.3 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft normative legal act that would define the criteria for a mandatory independent audit of enterprises under state ownership or establish a mandatory independent audit for all state-owned enterprises without exception
Ministry of Economy of Ukraine
The measure has not been implemented
Not implemented
3.4
2.4.1.3.4 Preparing a periodic analytical report (within the 1st quarter of the year in which this report is to be prepared) on the substantiated definition of the criteria for mandatory formation of independent supervisory boards at state-owned enterprises and conducting an independent audit of such enterprises (if the independent audit is not mandated for all state-owned enterprises without exception)
Ministry of Economy of Ukraine
Not started
3.5
2.4.1.3.5 Discussing the report (within the 2nd quarter of the year in which the report was prepared) indicated in subclause 2.4.1.3.4 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
Not started
4.1
ОСР
2.4.1.4.
At all business entities for which the establishment of supervisory boards is mandatory, such boards are empowered to control the implementation of internal anticorruption measures. Supervisory boards are formed in a competitive and transparent manner
2.4.1.4.1 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft law that:
1) defines a competitive and transparent procedure for forming supervisory boards of state-owned enterprises;
2) defines requirements for independent members of supervisory boards of state-owned enterprises;
3) defines the functional duties of members of supervisory boards of state-owned enterprises;
4) provides for the need to develop a methodology for defining clear and transparent performance indicators for supervisory boards of state-owned enterprises;
5) defines an exhaustive list of grounds for termination of the powers of members of supervisory boards at state-owned enterprises, and their liability for improper discharge of their duties.
Ministry of Economy of Ukraine
The measure was implemented late and partially
Partially implemented
50%
1 /
2
0.0%
4.2
2.4.1.4.2 Forming supervisory boards at state-owned enterprises for which the creation of supervisory boards is mandated
State authorities — subjects of management of state-owned objects
Not started
5.1
ОСР
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)
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 measure was not implemented on time and in full
Implemented
25%
2 /
8
0.0%
5.2
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 measure was not implemented on time and in full
Implemented
5.3
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 measure has not been implemented
Not implemented
5.4
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 measure has not been implemented
Not implemented
5.5
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
Implementation of the measure has not started
Not started
5.6
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
Implementation of the measure has not started
Not started
5.7
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
The measure has not been implemented
Not implemented
5.8
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
Ministry of Economy of Ukraine
Implementation of the measure has not started
Not started
6.1
ОСР
2.4.1.6.
A system of internal control and risk management has been introduced at public sector entities
2.4.1.6.1 Drafting and submitting to the Cabinet of Ministers of Ukraine a draft law proposing to:
1) define the requirements for the implementation of an internal control system at state-owned enterprises, which includes the functions of compliance, risk management, and internal audit (“three lines of defense” model);
2) balance the internal control system with the implementation of anticorruption programs, including corruption risk management;
3) define the powers of the supervisory board to exercise control over the functioning of the internal control system (at enterprises where audit committees have been formed pursuant to the Law of Ukraine On Audit of Financial Statements and Audit Practice), which includes implementing internal anticorruption measures
Ministry of Economy of Ukraine
The measure was implemented late and partially
Partially implemented
50%
1 /
2
0.0%
6.2
2.4.1.6.2 Implementing an internal control and risk management system at state-owned enterprises
Ministry of Economy of Ukraine
Not started