Transparency International Ukraine continues implementing the principles of transparency and accountability in the key areas of public governance.
Our project ProZorro.Sale and the electronic trade system of the same name have already achieved considerable results and brought quite a lot of money to the national budget.
The electronic system ProZorro.Sale consists of two parts, with each having its own database and being subordinate to different agencies.
The first part is sale of assets of bankrupt banks, administered by Deposit Guarantee Fund.
The second part is small privatization, which is accounted for by the Ministry of Economic Development.
After testing and implementation, these pilot projects are supposed to be fully transferred to the government together with the electronic system and the databases.
In 2016, the Ministry of Economic Development and Trade, the National Bank of Ukraine, the Deposit Guarantee Fund and TI Ukraine signed the Memorandum of Cooperation declaring the intention to build a transparent and efficient system for sale of assets of bankrupt banks and banks undergoing liquidation. We succeeded.
Between 2016 and 2019, ProZorro.Sale has been used to sell over UAH 11 billion worth of assets belonging to bankrupt banks.
There have been over 7,600 auction participants, and over 40 electronic platforms are currently in operation.
These numbers attest to the faith in the system which ensures equal rules for all participants, transparent competition and market prices at auctions.
It was the central database of ProZorro.Sale for sales of such assets that we have now transferred to Deposit Guarantee Fund.
The system will be administered by state-owned enterprise Prozorro.Sale.
TI Ukraine does not own the system any more. But our work is not over yet. We continue public monitoring of all procedures around sales of bank assets.
We are glad to have been part of the system that has already been recognized as one of the most successful anti-corruption startups in the world.
The principles of transparency and accountability that the system is based on have already brought tangible results for the benefit of the national budget.
Apart from the UAH 11 billion that went to the national budget through sales of assets of bankrupt banks through ProZorro.Sale, let me remind you of the second part of the system, which is small privatization.
During half a year, the use of ProZorro.Sale brought another UAH 808 million of revenue.
According to the governmental regulation on the pilot project on small privatization, clause 4, TI Ukraine owns and administers the electronic trade system during the pilot stage, and later transfers it to the government following pilot project implementation.
We expect to transfer this part to the Ministry of Economic Development as early as in spring of 2019.
Besides, since 2018, ProZorro.Sale has been used for municipal property lease and permissions for the use of mineral resources.
Ukrzaliznytsia (Ukrainian Railway) also started leasing freight cars and selling waste metal through the system, and any commercial company can now sell its property or assets through ProZorro.Sale as well.
Last year, the average minimum price at the auctions grew by 21%. The high interest in the system attests to its success and popularity.
ProZorro, ProZorro.Sale and e-Health are systems that we have managed to build from scratch to increase the transparency of public authorities and prevent corruption in sectors where it was endemic.
These systems have another thing in common – they would have never appeared if it had not been for cooperation of many people representing the public, the authorities, the business, international organizations and donors.
It is exactly this partnership that allows to achieve results in sectors where they would have seemed impossible just a few years ago.