The level of corruption in all spheres, including in the security and defense sector, and the low efficiency of the anti-corruption bodies are already questioning the possibility of Ukraine’s Euro-Atlantic integration in the near future. And even enshrining in the Constitution the course for Ukraine’s accession to NATO will not contribute to such integration, because real reforms are needed, not words. The fight against corruption in the security and defense sector is the responsibility of the president. Therefore, I will set a standard. There will be no preferences for godfathers or friends in public procurement and defense orders. Everyone will be on equal terms. The Law of Ukraine “On Prevention of Corruption” will apply to all entities of declaration without restrictions, including representatives of the Security Service of Ukraine. Everyone will be obliged not only to submit declarations, but also to publish them. The system of financial control of assets and income of the management of the security and defense sector will work effectively. The Ministry of Defense and the General Staff will be deprived of non-standard tasks and functions, which will minimize corruption risks in the activities of the defense forces. Work will be intensified to introduce a transparent system of financial and material resource management in the components of the security and defense sector within the framework of the NATO program to build transparency and reduce corruption risks in the work of defense and security institutions (the “Building Integrity” program) and the project implemented within the framework of the activities of the Council of Defense Ministers of South-Eastern Europe “Building an Integrity Defense Agency”.
Ensuring national security involves a certain level of secrecy in doctrines, concepts, strategies and programs. But unreasonable secrecy does not allow for control over their content and the state of implementation, over the use of financial resources. When I was the Minister of Defense, our team was the first to start publishing the “White Book” – a report of the Ministry of Defense for a certain period. These books are available now, you can easily see what was done. Therefore, the “White Books” will continue to be published annually. They contain explanations of decisions in the field of security and defense, highlight the implementation of programs, contain data on personnel, weapons and military equipment, provision of financial, material and other resources. Clear criteria for information that is a state secret will be determined. In parallel, we will introduce liability for officials for excessive secrecy, especially if it contributes to corruption and abuse of power. The corruption component will be eliminated as much as possible from the procedure for forming and implementing a government order, in particular, through the use of the ProZorro platform.
Now the system of state procurement in the defense sector has become a feeding trough for officials. Billions are being embezzled. We calculated with the Ukrainian Business Council that up to 400 billion hryvnias are being withdrawn from the budget through schemes, including through non-transparent procurements. This money could be directed to increasing soldiers’ salaries and ensuring their security. No official who profits from procurements will escape criminal liability. Most defense procurements should be transferred to electronic platforms – without the possibility of interfering in their work process. Clear eligibility criteria should be formed for contractors of works and services, where the price will be only one of the criteria for determining the winner. Each criterion will affect the outcome of the bidding. Cooperation with the NATO Support Agency – NSPA will be intensified. Access to NATO’s logistics electronic database will allow the procurement of combat equipment, optoelectronic devices, communications equipment, and other logistical resources via the Internet.
The current head of “Ukroboronprom” was appointed to the position by the president contrary to the Constitution. The president exceeded his powers and violated the law. Therefore, we have a concern that is not controlled by either the Cabinet of Ministers or any of the central executive bodies. This creates the prerequisites for total corruption and embezzlement of funds intended for the implementation of defense programs. The concern does not fulfill its tasks, it only produces corruption schemes. As president, I will ensure: 1. “Ukroboronprom” will be deprived of the functions of forming military-technical policy, and a Central Executive Body with a special status will be created at the same time. It will form and implement military-industrial policy, create effective legislative and regulatory functioning of the defense industry, and control the implementation of defense programs. 2. Conducting a comprehensive audit of special exporting companies and industrial enterprises involved in the field of state defense orders. 3. Creating equal working conditions for enterprises of state and private ownership with appropriate guarantees from the state. 4. I initiate the development of a state target program for the creation of new production facilities based on attracting innovations and investments in the defense industry. 5. Integration of the activities of scientific institutions and enterprises. Part of the profit from the implementation of foreign economic contracts should be directed to the modernization, renewal and creation of new production facilities. 6. Development of public-private partnership in the defense industry and cooperation with NATO.
The command staff of individual units and subdivisions of the Armed Forces of Ukraine and representatives of other military formations, law enforcement agencies of the middle and higher levels profit from the illegal movement of goods to the ORDLO. Everyone knows about this, the authorities also know, which is why the problem has not yet been solved. Until the return of Donbas, smuggling can be stopped only by adopting tough personnel decisions and establishing control mechanisms. The installation of additional technical means of control and surveillance will help combat the illegal movement of goods. Mobile groups will work in the field to control this process. It is necessary to increase fines to 50% of the value of the goods with confiscation – for those who committed the violation for the first time, and to 100% with confiscation – for those who committed the violation more than once during the year. Employees who, by their actions, contribute to the illegal movement of goods must be held criminally liable.
The Ministry of Defense has about 2,300 land plots with an area of approximately 530 thousand hectares on its books. Of these, 490 plots – about 50 thousand hectares – are used by third parties. Therefore, the Minister of Defense must ensure an inventory of defense lands and full state registration of land rights. A single register of land resources of the Ministry of Defense should be created, where each plot will have a state act, and a cadastre of land plots on which housing for military personnel will be built. Currently, only 24% of plots have cadastral numbers. Land plots that are not used for their intended purpose will be transferred to the management of central or local authorities, other bodies authorized to manage state property.
Indeed, providing a soldier with housing is the most acute problem in the security and defense sector. In the Armed Forces alone, there are about 47 thousand people on the housing register. When I was the Minister of Defense in 2005-2007, our team built the largest number of apartments for the military – 12,642. During 2011-2017, the Ministry of Defense was supposed to build (purchase) more than 45 thousand apartments. But in seven years, servicemen received 4,618 apartments. Therefore, a new Comprehensive Program for Providing Housing for Military Personnel with Realistic Sources of Financing and the Application of Crediting Mechanisms will be developed as soon as possible. Servicemen serving under a contract will be provided with official housing, in particular, through investment construction on the sites of the Ministry of Defense. Servicemen with more than 20 years of service will be provided with apartments through accumulative target programs, long-term and mortgage lending. 2. A Fund for Official Housing will be created – integral complexes built taking into account the reform of the Armed Forces of Ukraine and their needs. This housing will be registered with local authorities, it will not be possible to transfer it for permanent use to military personnel. 3. When building housing for military personnel, investors who have not fulfilled their obligations to the Ministry of Defense for decades will either pay in the shortest possible time, or return the plots that were transferred to them for construction. 4. The conditions for receiving excess profits for construction companies at the expense of the Ministry of Defense will be eliminated. 5. Mechanisms for long-term construction lending will be determined – up to 20 years with repayment from the budget, taking into account years of service, and mortgage lending for up to 15 years with a rate of up to 3% per annum and a mandatory borrower’s own contribution of up to 15% of the cost of purchasing housing – for military personnel. 6. Selection of competitive offers for the purchase of housing on the basis of share participation and on the secondary market will be carried out exclusively through the electronic procurement system. 7. Actual registration of military personnel and persons discharged to the reserve or retired who need improved housing conditions will be ensured. Military personnel of the Armed Forces of Ukraine, those who have already been discharged from service, members of their families, including family members of those who died or went missing while serving, will be provided with housing. 8. Strict control will be established over the distribution of residential premises in the garrisons of the Armed Forces.
