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15 February, 2018
NAKO calls for a competitive procedure to select the Director of Ukroboronprom
The Independent Defence Anti-Corruption Committee (NAKO) calls upon Prime Minister of Ukraine Volodymyr Groysman to define the criteria and procedure for the selection of the new Director General of the state-owned defence company Ukroboronprom, and to hold a public hearing of potential candidates. On 12 February 2018, the President of Ukraine Petro Poroshenko dismissed Ukroboronprom Director General Roman Romanov from his post. According to the Ukroboronprom’s Statute, the Director General should be appointed by the President of Ukraine upon motion from the Prime Minister; the law does not specify the criteria and procedure for the selection of candidates for this influential position.
 ‘Now more than ever, it is extremely important to select professional and respected candidates for the position of Ukroboronprom Director General. The process of a new director appointment must be based on transparent procedures and meritocratic principles. The Concern must be run by the best of the best,’ -- says Oleh Rybachuk, NAKO co-chair,
The CEOs of other state enterprises have been selected based on public competitions. In these cases, a committee was established to select senior appointments for the most important Ukrainian enterprises. This committee includes both representatives of the Ukrainian government and independent members (who provide input but do not vote).They are responsible for defining the criteria and selection of CEOs for major Ukrainian state enterprises. On February 13, Ukroboronprom announced that the newly established Supervisory Board of Ukroboronprom was finalizing the search for the new Ukroboronprom Director to be appointed by the President of Ukraine. Indeed, according to global best practices, the Supervisory Board should be engaged in the selection of the new Director General. However, according to the Ukrainian legislation, it is the role of the Prime-Minister to nominate the new Director of Ukroboronprom, not of the Supervisory Board. It is also questionable why the search for the new Director is being finalized the next day after the previous Director was dismissed and this is being done in such a non-transparent manner. According to NAKO experts, open selection and discussion of candidates will not only help in finding best candidates but also increase the trust of the Ukrainian society and international community in Ukroboronprom.
‘Reinstating trust in Ukroboronprom is crucial. Uncomfortable questions about corruption can be heard not only from the Ukrainian society -- they increasingly come from our international partners as well. We must demonstrate best practices of managing defence industrial complex to reinstate trust and ensure effective cooperation in the defence and security sector’ -- says Olena Tregub, NAKO Secretary General.
NAKO is ready to advise the Ukrainian Government on the criteria and procedure for the selection of Ukroboronprom’s Director General. Contact for media: Taras Yemchura +38 098 910 24 86; tyemchura@transparency.org  The Independent Defence Anti-Corruption Committee (NAKO) is an initiative of Transparency International Defence and Security and Transparency International Ukraine. Its mission is to minimize opportunities for corruption through strong research, effective advocacy, and increased public awareness, in order to strengthen the Ukrainian defence and security sector.   Download press release