It has been almost six months since State Concern Ukroboronprom ceased to exist and the Ukrainian Defense Industry Joint Stock Company appeared. However, the transformation within this giant of the state defense industry continues. At the same time, other institutional changes continue, including anti-corruption ones.
"We have three main corruption risks. The first is when someone takes money to appoint a company director, the second is when factory managers buy something at inflated prices, and the third is when managers rent out for a thousand hryvnias something that can be rented out for 10 thousand hryvnias.
Such an opinion was expressed in a recent interview in the online publication "Ekonomichna Pravda" by the general director of JSC Ukroboronprom Herman Smetanin. In addition, he told what has already been done to overcome corruption risks.
In particular, it is about resuming procurement monitoring through the Prozorro system:
“We are actively returning purchases to Prozorro, although this practice was halted when the full-scale invasion began. We jointly buy electricity and gas for enterprises. Thanks to this, almost 50 million hryvnias were saved. We hold tenders for non-military services and goods."
In parallel, Ukroboronprom is also working on policies. Yes, any sale or lease of this property must first undergo an independent evaluation, based on the results of which the subsequent starting price will be determined. The transactions themselves will take place through Prozorro Sale. According to Smetanin, the task of Ukroboronprom is to prevent embezzlement at the system level.
He also announced the renewal and improvement of the competitive selection of candidates for the positions of company managers:
"Several dozen candidates come to us. Our personnel selects ten of the most professional and educated among them. Then, probably twenty people sit at the table: representatives of the Cabinet of Ministers, the Ministry of Economy, the Ministry of Strategy and Industry, and foreign diplomats. A candidate arrives, and we begin to ask him questions.
The Independent Anti-Corruption Commission (NAKO) and StateWatch ensure he does not have “shady companies” or corruption risks. As a result, out of ten candidates, two are left. During the personal interview, I choose the more suitable one.”
NAKO has been actively analyzing candidates for director positions from the very beginning of this tradition – since 2019. We carefully check candidates for potential and real corruption risks and have the opportunity to express our position to the management of the JSC Ukrainian Defense Industry. Our recommendations are also taken into account in Ukroboronprom's strategy.