The National Agency on Corruption Prevention (NACP) and the NGO StateWatch have identified the top 15 corruption risks in the management of enterprises of the state concern Ukroboronprom (UOP). These risks are described in detail in a study that was presented recently. And most of them have also been repeatedly addressed by NAKO and recommendations are given on how to eliminate them.
In particular, we are talking about:
- Political influence on government;
- Appointment of politically dependent supervisory board members at UOP companies;
- Expropriation of defence enterprises’ property during rehabilitation;
- Unauthorized construction on the territory of defence enterprises;
- Expropriation of unregistered land under the buildings of defence industry enterprises;
- Promoting the shadow use of real estate;
- Leasing enterprises’ property on unfavourable conditions for UOP;
- Free transfer of design documentation;
- Loss (waste) of military equipment and spare parts;
- Concluding unprofitable agreements for defence plants.
In addition, the NACP’s top risks also included the following:
- Concluding agreements on equity participation in capital construction on unfavourable terms;
- Loss or waste of factories’ fixed assets;
- A defence plant leasing private property owned by its management;
- Land payments made by a state-owned enterprise instead of a private one;
- The concern’s discretion to establish enterprises outside the defence industry.
Ukroboronprom’s enterprises lost property, production facilities, and land; increased loan indebtedness; and became unprofitable, the NACP explains. The reason for this is the non-transparent and politically inefficient management system of the UOP.
Together with our civil society colleagues, we call on the government and parliament to pay attention to minimizing these risks both in the defence concern’s enterprises and in other state-owned enterprises that resort to similar schemes.