How the Selection Process for the Head of ARMA Will Work Under New Rules

ARMA’s Head, Olena Duma, has submitted her resignation, which means a new competition will soon be held to appoint the next leader of the Asset Recovery and Management Agency.

On July 30, a new law came into force, marking the beginning of a true reform of ARMA. The law introduces a comprehensive international audit of the Agency, establishes clear rules for selecting asset managers and identifying assets, and provides for planning prior to asset transfer to ARMA. It also lays out new procedures for appointing the Agency’s Head.

Coincidentally (or not) Olena Duma submitted her resignation on the same day the law came into effect. Under both the new and previous laws, her resignation is grounds for dismissal from the position.

So what happens next, and how will the competition work under the new rules? Let’s break it down.

What has changed in the selection process?

The key change lies in a fundamental shift in approach: the new procedure involves a significant role for experts nominated by international development partners. No decision can be made without their votes. This marks a major improvement over the previous procedure, which was more vulnerable to undue political influence.

Previously, the selection commission included three representatives from the Verkhovna Rada, and one each from the Prosecutor General, NABU Director, Minister of Justice, Financial Monitoring Service, and Minister of Finance.

Now, the commission will consist of six members appointed by the Cabinet of Ministers. Three of these must be selected based on nominations from international development partners.

The pool of eligible candidates has also been expanded. In addition to lawyers, economists may now apply, opening the door to a broader range of professionals. Proficiency in one of the official languages of the Council of Europe is now a mandatory requirement.

The law now clearly defines the criteria for integrity and professional competence — gaps that were previously highlighted in TI Ukraine’s communications. The requirement for political neutrality has also been strengthened: candidates must not have had ties to political parties within the past two years (previously one year).

Procedurally, the competition commission may now select up to two candidates instead of one, leaving the final decision to the Cabinet of Ministers. However, the commission still has the option to recommend only one candidate.

The timeline has also changed. The selection process must now begin two months before the current Head’s term ends, compared to the previous 45-day window. This is meant to allow more thorough vetting and avoid a leadership vacuum. If the Head resigns early, the commission must be formed within 14 days.

For the first time, the procedure includes a practical task phase. The commission may also assign other tests or tasks at its discretion. Also, it is now required to develop evaluation criteria and a methodology for assessing candidates for the Head of ARMA.

What are the next steps?

Implementing the new procedure will require swift, coordinated action from several key actors.

First, within three days, the Cabinet Secretariat must identify international development partners eligible to nominate members to the competition commission. These partners will then agree on a joint list of at least three candidates for the commission.

Next, the Cabinet must appoint the commission members during a public meeting. Under the new law, each member must have a higher education degree and an impeccable reputation, be legally competent, have no unexpunged criminal record or administrative sanctions preventing public office, and must not currently hold any public or municipal positions. They must also not have served in the leadership of any political party in the past year. 

The commission becomes operational only when all six members are appointed. Its members are responsible for defining candidate evaluation criteria, developing internal regulations, and establishing the competition procedure.

The competition will follow these stages:

1. Announcement of the competition. The competition commission publishes an announcement in official print media and on the Cabinet of Ministers’ website, detailing the terms and deadlines.

2. Submission of applications. Applicants submit the required documents within the specified timeframe. This includes an application, CV, public official’s asset declaration, motivation letter, and other materials.

3. Publication of candidate information. Within three working days after the deadline, information about the candidates (excluding personal and contact details) will be published on the Cabinet’s website.

4. Candidate evaluation. The competition commission assesses candidates based on integrity and professional competence. The integrity assessment has no time restrictions; a candidate may be rejected if reasonable doubt arises.

5. Selection and appointment. The competition commission submits no more than two candidates to the Prime Minister. The Cabinet of Ministers then appoints one of them as Head of the Agency within 10 days. This person is considered the winner of the competition.

It is important that all information about the competition and its results must be published on the official website of the Cabinet of Ministers of Ukraine.

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The success of this reform hinges on the willingness of all stakeholders to cooperate constructively and adhere to the principles of transparency. The authorities now have a clear, rules-based opportunity to appoint a truly competent and honest Head of ARMA, so the competition must be organized swiftly and to the highest standard.