On 7 June 2011, the draft Law on Preventing and Combating Corruption in Ukraine (the Anti-Corruption Law) was finally signed into law by the Ukrainian President.
As we reported earlier this year (see Law-Now of 18 April 2011 Ukraine: New anti-corruption law adopted by the Ukrainian Parliament), the new Anti-Corruption Law establishes a certain legislative framework for the prevention and combating of corruption in Ukraine.
In particular, the Anti-Corruption Law imposes various restrictions on civil servants such as an obligation to declare both profits and expenses, a prohibition on engaging in commercial activities and pre-appointment verification of candidates’ statements in job applications.
Moreover, the Anti-Corruption Law sets forth a broad list of employees which may be held liable for corruption offences, including individuals performing functions of the state or local government, officers of state-funded entities, officials of foreign states or international organisations and officers of private business entities.
It is important to note that prior to being forwarded to the Ukrainian President for signature, the draft Anti-Corruption Law was unexpectedly modified when on 12 May 2011, the Ukrainian Parliament introduced an amendment to the initial draft law adopted on 7 April 2011. This amendment has raised the minimum amount of spending subject to declaration by civil servants, from UAH 50,000 to UAH 150,000.
Therefore, the threshold for declarable expenses has tripled, apparently weakening the declaration requirements of the Anti-Corruption Law.
The new Anti-Corruption Law is scheduled to become effective on July 1 2011 and notwithstanding certain drawbacks, it will contribute to the prevention and prosecution of corruption offences in Ukraine.