The Organization for Economic Co-operation and Development (OECD) addressed a letter to Ukraine’s Deputy Head of the President’s Office Iryna Mudra, warning Kyiv that the attack on anti-corruption agencies will negatively affect defense investments in Ukraine and reconstruction financing.
Ukraine is about to become an OECD member, joining the platform that sets the international standards and guidelines for development cooperation and provides analysis for policymaking globally.
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Ukraine’s media outlet European Pravda obtained the letter, reporting on the event on Wednesday, on the second day that Ukrainians defied a wartime ban on demonstrations to protest against the government’s decision to pass a controversial bill that guts the anti-graft agencies.
Julia Fromholtz, Head of the OECD Anti-Corruption Division, expressed “deep concern about recent developments” concerning the adoption of draft law No. 12414, the media outlet wrote.
Passed by parliament hastily on Tuesday, July 22, the legislation removes the independent status of the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO), giving the Prosecutor General powers to oversee investigations, access case files, and even close cases based on defense requests.
According to European Pravda, Fromholtz wrote that OECD will view the law’s adoption as a weakening of Ukraine’s compliance with its obligations, also jeopardizing Ukraine’s future aspirations to join the OECD.
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In effect, the government’s controversial Bill 12414 stripped the prosecution arm of the independent anti-corruption ecosystem, rendering it no longer independent.
Back in March 2023, Ukraine’s President Volodymyr Zelensky thanked the OECD for recognizing the prospect of Ukraine’s membership in the group, as Ukraine took on obligations to make the move amidst Russia’s full-scale invasion of Ukraine.
The law is also undermining the independence of Ukraine’s specialized anti-corruption bodies, according to the letter reported by European Pradva.
“If this letter reaches you after the signing of the bill, we call for further legislative changes to preserve the independence of specialized anti-corruption bodies. I urge you to consider this issue with the utmost seriousness,” Fromholtz wrote in the letter, European Pravda reported.
If Zelensky does not restore the independence of anti-corruption agencies, Fromholtz warned it will also jeopardize Ukraine’s prospects for joining the OECD Anti-Bribery Convention, and “undermine its credibility among international partners, including those considering investing in Ukraine’s defense sector and its long-term reconstruction,” the letter says.
OECD’s letter is another addition to the avalanche of warnings over anti-corruption rollback.
The European Bank of Reconstruction and Development (EBRD) also expressed their concerns in a post on Facebook, being Ukraine’s key investor among the international financial organisations.
“The EBRD echoes concerns expressed by the EU, G7 Ambassadors and international partners on developments around NABU and SAPO in Ukraine.
The independence of anti-corruption entities is a key pillar of the Rule of Law. We will remain engaged with the authorities on this issue,” EBRD wrote.
Senators Jeanne Shaheen, a Democrat, and Lindsey Graham, a Republican, issued a joint statement, warning that a new Ukrainian law could roll back years of progress in fighting corruption.
The EU’s enlargement commissioner Marta Kos expressed her dismay at a vote by Ukrainian parliamentarians in the Verkhovna Rada. And the “Group of Seven” (G7) Ambassadors for reform in Ukraine have expressed “serious concerns” about reports of mass searches at Ukraine’s National Anti-Corruption Bureau (NABU) that have led to charges being laid against Bureau personnel.