The defence industry is a profitable part of the economy because it circulates significant assets and a large amount of money. That is why this industry is so prone to corruption.
In general, the management of state-owned enterprises in the defence industry is inefficient and non-transparent. The flagship of the defence industry of Ukraine, state concern Ukroboronprom, is not subject to the general rules of state enterprises. In particular, the concern has no corporate governance and there are no requirements for accountability and transparency of its activities. As a result, Ukroboronprom has repeatedly been the subject of anti-corruption investigations and scandals.
To solve this problem, Ukrainian defence companies need to implement international anti-corruption and OECD corporate governance standards in their work. In particular, the Law of Ukraine №1630-IX, adopted in 2021, is aimed at achieving this. NAKO experts were actively involved in its development and promoted compliance with the best international standards. Now, NAKO will monitor and supervise the implementation of this law.
In general, the management of state-owned enterprises in the defence industry is inefficient and non-transparent. The flagship of the defence industry of Ukraine, state concern Ukroboronprom, is not subject to the general rules of state enterprises. In particular, the concern has no corporate governance and there are no requirements for accountability and transparency of its activities. As a result, Ukroboronprom has repeatedly been the subject of anti-corruption investigations and scandals.
To solve this problem, Ukrainian defence companies need to implement international anti-corruption and OECD corporate governance standards in their work. In particular, the Law of Ukraine №1630-IX, adopted in 2021, is aimed at achieving this. NAKO experts were actively involved in its development and promoted compliance with the best international standards. Now, NAKO will monitor and supervise the implementation of this law.
