Will the BES be rebooted: what is known about potential leaders?
31 October 2024 12:45
ANALYSIS
They were supposed to counteract economic crimes against the state, but instead got caught up in corruption scandals themselves.
Since the establishment of the Bureau of Economic Security (BES), the institution has received a lot of criticism from both Ukrainian business and Ukraine’s international partners. Kyiv was once again reminded in Brussels of the need to bring its law enforcement system in line with European standards. According to the updated Memorandum between Ukraine and the International Monetary Fund, Ukraine must elect a new head of the Bureau of Economic Security (BES) by the end of February 2025 with the participation of international experts. The new law on the BES, adopted in June 2024, should strengthen the agency’s role in fighting economic and financial crimes. Komersant analyzed whether the BES will be able to be rebooted and what kind of experience a specialist should have to head the structure.
What does the new law provide for?
The law stipulates that the BES will focus on major economic and financial crimes and strengthen its analytical capacity to effectively combat such crimes. The selection of the new head will be based on transparent criteria, and international experts will have a decisive vote in the selection. The Head of the BES, once appointed, will also approve the procedure for staff certification and form a certification commission to assess the professional and moral qualities of the current staff.
Fighting money laundering and reforming customs
The IMF document also emphasizes the importance of continuing to work on improving the system of combating money laundering and terrorist financing. In particular, the government’s task is to support financial intelligence efforts to detect large-scale tax evasion and smuggling. These efforts are aimed at improving the work of the State Customs and Tax Services, which will also be reformed to ensure more efficient operations.
“A transparent selection process for senior positions, including the appointment of the head of customs, is intended to strengthen accountability and ensure higher standards in the fight against economic crime,”
– the IMF summarizes.
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Experts doubt the effectiveness of the BES reboot
Managing Partner of the National Anti-Crisis Group Taras Zagorodniy in an exclusive commentary
“I don’t expect anything new from the BES reboot, given the previous experience of reforming the prosecutor’s office and anti-corruption structures. After two reforms, the prosecutor’s office remained as ineffective as ever, and no one was held accountable for it,”
– comments Taras Zahorodniy.
The expert notes that the transformation of anti-corruption bodies is often limited to formal changes that do not affect the efficiency of their work. According to him, the dysfunctionality of these structures is only increasing, as neither Ukrainian reformers nor international partners supporting the reform process are responsible for their condition.
The Bureau of Economic Security did not meet expectations
Anatoliy Amelin, Executive Director of the Ukrainian Institute for the Future, in an exclusive commentary
“Despite the work of the BES, the prosecutor’s office and the tax authorities continue to block the activities of enterprises. In an environment where justice and fairness are not the main values, it is difficult to imagine how the BES can become an effective body.”
Anatoliy Amelin
The expert emphasizes that in order to succeed, it is necessary to elect a crystal clear person with a clear system of values and a competent team to the leadership position. However, Amelin notes that so far it looks more like a utopia than a reality of Ukrainian reforms.
Scandal and large-scale searches in the Odesa Bureau of Economic Security: grain corridor schemes are under suspicion
The unstable situation around the BES and criticism from partners was fueled by a series of searches of the Odesa Bureau of Economic Security. The State Bureau of Investigation has uncovered a large-scale tax scheme related to the grain corridor. According to preliminary data, it caused UAH 10 billion in losses to the state. Several grain traders are under suspicion of tax evasion, probably with the support of influential officials.
Among those involved in the investigation is Dmytro Verbytskyi, a former deputy prosecutor general who was fired over suspicions of illicit enrichment. Despite the criminal proceedings related to his activities, there have been speculations about his possible involvement in new corruption schemes in Odesa related to the BES.
Searches also took place at the home of Serhiy Muntyan, the head of the Odesa territorial office of the BES.
Who can become the new head of the BES?
Currently, Serhiy Perkhun is acting Director of the Bureau of Economic Security of Ukraine. There are also two deputies: Andriy Pashchuk and Maksym Kuterha, who holds the position of Deputy Director for Digital Development, Digital Transformation and Digitalization of the BES.
It is not yet known whether someone completely new can head the agency. Also, no names have been mentioned on the sidelines of the Verkhovna Rada, as confirmed by
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Author: Anastasia Fedor
