Business associations under the auspices of the Ukrainian Business Council are asking to finalize the government’s updated draft law on the Economic Security Bureau (#10439), as it leaves unaccounted for important proposals that jeopardize the reboot of the BEB.
“The most critical of the unaccounted proposals is the composition of the competitive commissions for the recertification of personnel and the mechanism for conducting the recertifications,” the 17 associations said in a statement circulated Thursday.
In their opinion, the detailed mechanism of re-certification should be set out in the draft law, and the commissions themselves should have a predominant voice of international experts who have an impeccable reputation and are well versed in the problems of law enforcement agencies.
Among other ignored proposals, the business pointed out the strengthening of the analytical function of the Bureau by providing free access for the BEB to existing state information systems and establishing criteria for the effectiveness of the work of the renewed BEB and their constant monitoring.
In addition, the appeal notes, it is important to limit access to positions in the BEB to persons with a dubious reputation based on the principle of reasonable doubt, given the small number of corruption cases that have resulted in convictions.
It is also crucial to retain in the final version of the draft the right to an overwhelming vote of international experts when electing the chairperson of the OIE, the document says.
In addition, in order to establish safeguards against unlawful pressure on business by law enforcement agencies, simultaneously with the reset of the BEB, the business requires amendments to the Code of Criminal Procedure regarding the introduction of standards of prosecutorial activity, limiting the powers of the National Police and the BEB in terms of assigning instructions to SBU operatives, ensuring the possibility of appealing to the investigating judge against any actions or inaction of the investigator, inquirer, prosecutor.
In addition, the business proposes to introduce a ban on reopening proceedings on the same grounds and seizure of material assets not specified in the ruling of the investigating judge, to establish responsible storage and immediate return to the owners of seized property after the decision, to select a reasonable level of bail and interim measures.
Among other requirements – to impose on investigating judges the obligation to verify compliance with the requirements of jurisdiction and to return the terms of pre-trial investigation and the procedure for their extension in actual criminal proceedings, except for serious and especially serious crimes, referred to the jurisdiction of NABU.
At the same time, the associations noted that the updated government bill on the BEB took into account a number of proposals of the business community, in particular, the election of applicants for the post of the head of the Bureau by a commission with a predominant vote of international experts, immediate recertification of all employees of the Bureau and audit one year and three years after the appointment of a new head.
According to the forecast of Yaroslav Zheleznyak, the first deputy of the Rada’s specialized committee, the bill #10439 will be put to a vote in the first reading as early as Thursday.
BILL, BUSINESS ASSOCIATION, ECONOMIC SECURITY BUREAU, UKRAINE, БЕБ
President of Ukraine Volodymyr Zelensky signed law No. 1150-IX on the Bureau of Economic Security of Ukraine, which the Verkhovna Rada adopted on January 28, 2021, the presidential press service said on Monday.
“The document creates institutional conditions to protect economic processes from the pressure of law enforcement agencies, which is supported by Ukraine’s international partners. The main function of the Bureau of Economic Security will be analytical work, not law enforcement powers. The bureau will analyze the beneficiaries of financial transactions and determine if there is a violation of the law in the circulation of funds of certain businesses or government agencies,” the president said in the document.
ECONOMIC SECURITY, ECONOMIC SECURITY BUREAU, VOLODYMYR ZELENSKY
The Verkhovna Rada on Thursday adopted bill No. 3087-d on the Bureau of Economic Security – a new central executive body, which activities are coordinated by the Cabinet of Ministers and which is tasked with counteracting economic offenses.
An Interfax-Ukraine correspondent has reported that the document was supported by 242 MPs with the required minimum of 226 votes.
In particular, 201 MPs of the ruling Servant of the People faction, 17 MPs of the Dovira group and 16 MPs of the opposition Holos faction cast their votes for the bill.
“It was a very difficult one and a half years of work. It was a very complicated bill… Thanks to those who interfered. With you, the reform has become more difficult, but richer. Although, of course, the most important thing in the creation of the Bureau of Economic Security is still ahead,” Head of the profile parliamentary committee Danylo Hetmantsev said, commenting on the adoption of the law.
The adoption by the Verkhovna Rada of this document was welcomed by Prime Minister Denys Shmyhal, who called it “a landmark event.”
“Ukraine is taking another step towards Europe and the civilized world. The tax police are becoming a thing of the past, and a new analytical body will appear in its place, which will investigate financial and economic crimes without corruption and masked shows,” the head of government said.
The Ministry of Finance said that the adoption of the law on the creation of a financial investigation body is part of Ukraine’s international obligations, in particular, under the Stand-By Arrangement with the International Monetary Fund (IMF) and EU macro-financial assistance.
The ministry recalled that the document was developed with the aim of eliminating the tax police and creating an independent state law enforcement agency, which is obliged to perform the functions of analytical assessment, prevention, detection, suppression, investigation and disclosure of criminal offenses attributed by law to its jurisdiction.
The new body will unite all the units for combating economic crimes of all law enforcement agencies and will pay more attention to analytical work, which will reduce pressure on business and improve the investment climate in Ukraine.
According to the document posted on the Rada’s website, the Bureau of Economic Security should be created, and the State Fiscal Service should be liquidated within six months after the law enters into force (its publication). It was recommended that the Cabinet of Ministers take measures to form a tender panel to appoint the Director of the Bureau, create this new body and its territorial departments. An open competition for positions in the central office of the Bureau of Economic Security must be held within four months from the date of entry into force of the law.
In addition, an audit of material resources, weapons and special means of the State Fiscal Service of Ukraine should be carried out and they are to be transferred to the Bureau of Economic Security.
