THE TRANSPARENT AUCTION ON THE SALE OF INSOLVENT BANKS’ ASSETS IS ANOTHER SUCCESS STORY IN PROZORRO’S CHAPTER

The ProZorro ideology is unique to Ukraine. How so? one might ask. It is often  perceived that the fight against corruption will result in the persecution or the imprisonment of somebody, however in reality the fight only results in part of the problem being addressed as opposed to the whole of it. Corruption dissipates when new rules prevent its practice. The base for corruption is closed nature and inefficiency. TI Ukraine works as a component of ProZorro.Sales team, providing openness and monitoring. Soon, we will launch monitoring portal as part of ProZorro.Sales. And anyone will be able to control the system. It is a basic idea of ProZorro to make everything transparent and accessible. Transparency is ensured now. Concerning accessibility we will try to ensure it constantly, both in this project and other ones.

 I would like to thank the Deposit Guarantee Fund and primarily sales department represented by Yuliia Bereshchenko. The will of this structure to work in a new way is crucial. The initiative belonged people, who refused to have everything old but with new slogans. We understand that during 2014 – 2016 the state had to return a lot of money – 78 billion UAH of depositors. And for 2016 before the project was launched we managed, according to our information, to return only 8 billion via sales. A lot of money was financed additionally from the state budget. It is not people’s fault. It is fault of insufficient system.

For an effective system, it has to be accessible, transparent and credible for businesses. The formula contains four important components:

1 – demand from business to work in a new way;

2 – civil control (here we can help those, who really want to make anticorruption reforms, not imitate);

3 – attention of society and possibility to monitor. It would be impossible without the reformers in the government.

So, I want to thank ProZorro.Sales team, Ministry for Economic Development and Trade and active staff of the Deposit Guarantee Fund one more time.

The National Bank of Ukraine has already requested the sell of assets via ProZorro.Sales. We encourage other structures to join the process, not only speak about it. I apply to the administrators of CETAM system, who publish the press release that they have joined us, but unfortunately, they do not still do it. I would like to speed this process up. To come from PR to real reforms and use of new mechanisms, effective and obligatory.

If this process is successful (and I have no doubt in it), it will be expended in many spheres. Structures, ensuring amber sale applied to use and interested in this process.

Of course, we have to work the system with the Deposit Guarantee Fund to make it ideal and then start expending this process. I hope that in the next year we can share this algorithm. The first auctions proved that they worked. In the nearest future, we will launch the mechanism proving that it is transparent, effective and all information can be received from one resource and participation is important.  In the next year we will be able to speak about one more success at ProZorro level. Firstly, in Ukraine, then, possibly, abroad. Now at the international meeting in Berlin our colleagues from the Innovative project program of Transparency International Ukraine help Europeans to implement ProZorro system elements.

Presentation of the first results of the successful auction within ProZorro.Sales system as of November 22^nd, 2016  can be found here

https://www.youtube.com/watch?v=JWzxh_7Ls1I

Yaroslav Yurchyshyn

Executive director of Transparency International Ukraine, chief expert of Anticorruption reform group of the Reanimation Package of Reforms

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