Without managers and with the tranche under threat: Government slows down competitions for BES and Customs heads
5 August 16:58
The competition for the head of the State Customs Service of Ukraine may repeat the “scenario” of the competition for the head of the Bureau of Economic Security. This was reported by "Komersant Ukrainian" with reference to Forbes.
The media outlet writes the following: MP and First Deputy Chairman of the Verkhovna Rada Finance Committee Yaroslav Zheleznyak said that as of early August, the competent authorities had not even formed the secretariat of the competition commission. Also, the date of its first meeting has not been set, which makes it impossible to launch the competition in the near future.
According to Zhelezniak, even if the process is accelerated, the realistic timeframe for the selection is at least four to five months. This means that the new head of the Customs Service can be appointed no earlier than the end of 2025.
Delaying the competition creates not only managerial uncertainty at the State Customs Service, but also threatens the fulfillment of Ukraine’s international obligations to the International Monetary Fund. The appointment of a new head of the customs service is a condition for receiving the next tranche of financial assistance in the amount of $1.4 billion. Although the deadline was previously set for the first half of 2025, after an unsuccessful attempt to form a selection committee in January and February, the deadline was postponed to the end of the year.
How the Head of the State Customs Service of Ukraine is selected
The procedure for selecting the head of the State Customs Service is similar to the one used during the competition for the director of the Bureau of Economic Security (BES). It involves an open competition with several stages of evaluation, including integrity checks, interviews, and special checks, including those on possible threats to national security. However, the case of BES demonstrated that even after successful completion of all stages, the final decision remains political and can be revised without disclosing the reasons.
Formation of the Competition Commission for the Selection of the New Head of the State Customs Service: What is Known
Prime Minister Yulia Svyrydenko personally participated in the formation of the Ukrainian part of the competition commission for the selection of the new head of the State Customs Service. This was reported to Forbes Ukraine by a government source. According to the source, it was Svyrydenko who initiated the involvement of business representatives in the selection process.
In particular, the commission includes Andriy Yerashov, head of the analytical center of the Union of Ukrainian Entrepreneurs, and Dmytro Oliynyk, chairman of the Federation of Employers of Ukraine. The latter confirmed his participation in the commission and noted that the invitation came personally from the Prime Minister on the recommendation of the Ministry of Finance.
This is the government’s second attempt to form a competition commission. The previous stage, which started in January 2025, was disrupted by disputes over the composition of the commission and the withdrawal of funding from USAID. The U.S. development agency was supposed to finance up to 90% of the costs associated with the customs system reform. However, due to internal political disagreements, support was suspended. The process was resumed only after personnel changes in the government – after Svyrydenko was appointed Prime Minister.
The updated composition of the commission includes not only Ukrainian representatives but also international experts. Among them:
- arunas Adomenas, Customs Attaché of Lithuania to the European Union;
- david Bernstein, a well-known expert in the field of anti-corruption policy;
- former Secretary General of the World Customs Organization Kunio Mikuriya.
This composition, according to the participants of the process, should ensure transparency and objectivity in the selection of a candidate for one of the key positions in the economic management system.
The involvement of business associations in the selection committee is part of the government’s broader strategy to restore confidence in the customs system on the part of the business community. In the context of cooperation with the IMF and the EU, the process of appointing a new head of the customs service is seen as a priority commitment of Ukraine in the area of transparent governance and fight against corruption.
Read also: New code and digitalization: large-scale modernization awaits the Customs Service
Election of the Head of the Customs Service and the Head of the BES: context
The Government of Ukraine has not yet appointed the winner of the competition for the position of the head of the Bureau of Economic Security, despite the fact that the competition commission announced on July 10 that the candidate Oleksandr Tsyvinsky had the highest score. The Cabinet of Ministers explained the refusal by citing information from the Security Service of Ukraine about Tsyvinsky’s possible ties to Russia. At the same time, the government did not provide any official evidence of these allegations, which led to criticism from a number of MPs, experts and members of the public.
The lack of transparency regarding the grounds for rejection raised concerns about the legitimacy of the selection process for sensitive positions in the economic security sector. Given that the competition was conducted in accordance with updated procedures that are closer to integrity standards, the refusal to appoint the winner without public justification could undermine confidence in the new model of competitions for senior positions in the public sector.
What is happening at the State Customs Service now
As of the beginning of August, the functions of the head of the State Customs Service are being performed by an interim head. With the delay in personnel decisions, the customs service continues to operate in a mode of limited managerial legitimacy, which negatively affects both personnel policy and the implementation of long-term reforms, including the digitalization of procedures, combating smuggling, and the implementation of the action plan for cooperation with the EU.
Given the importance of the customs service as one of the key sources of state budget revenues, delays in appointing a head can affect not only the efficiency of the agency but also the overall economic stability of the state. It also signals to international partners that there are difficulties in implementing commitments to the rule of law and transparent governance.
Experts emphasize the need to ensure publicity and predictability in making personnel decisions, particularly in institutions that directly affect the country’s financial security. Otherwise, Ukraine risks losing the trust of both donors and its own business environment, which expects stability in the rules of the game and honesty in appointments.
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