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18 June, 2018
NAKO and Ukroboronprom Have Reestablished Dialogue on the International Audit of Ukroboronprom
18 June 2018 the NAKO met with management and the Supervisory Board of the state defence establishment Ukroboronprom to discuss further dialogue on the international audit of Ukroboronprom. The Independent Defence Anti-Corruption Committee is in favour of the revised tender for an independent audit and strategic analysis of Ukroboronprom, said NAKO Co-Chair Drago Kos.

Drago Kos, NAKO Co-Chair Independent audit of Ukroboonprom due to OECD standards is in the interest of the Ukrainian society and the Ukrainian army as it will help make company’s activity transparent but first and foremost in the interest of Ukroboronprom itself as it will help the state defence establishment to regain trust and attract investors. The independent international tender is supposed to bring light to inefficiencies, corruption risks and structural deficits at Ukroboronprom. The NAKO provided recommendations to Ukroboronprom’s Supervisory Board about what should be included in the tender, and the Supervisory Board revised it in line with these recommendations. For the time being, auditors companies "Baker McKenzie", "Baker Tilly", "Ernst & Young" have already submitted their bids for the tender. However, during the tender call some technical problems have appeared, due to this the call for bidding was extended till 28 September 2018. Ukroboronprom also made some changes to the tender documentation to enlarge the number of potential applicants. The NAKO has monitored the Ukroboronprom’s way towards reform since 2017 as an independent observer. Because by the end of 2017 the Supervisory Board was not established, NAKO withdrew from engagement with UOP citing stalled reform efforts. At the beginning of 2018, the Supervisory Board was reestablished and the NAKO recommendations were included to the tender documentation. This made further dialogue between the NAKO and Ukroboronprom possible.