Financial Risk:
High
Score:
40/100
Asset Disposals
Q24
50/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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The MoD Main Directorate of Property and Resources is responsible for the state policy in the field of alienation of military property of the…
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The decisions on the disposal of military property, which is suitable for future use, but cannot be applied in the daily activities of the…
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Funds received from the disposal of the assets are to be transferred to the state budget within a five day period [1]. The MoD…
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Q25
33/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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There is no evidence of regular scrutiny of asset disposals by audit bodies or the VRU. However, there were a few occasional audits [1,…
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The Accounting Chamber of Ukraine conducts the external financial control function on behalf of the VRU [1]. Independence of the Accounting Chamber is provided…
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There is a lack of evidence of regular scrutiny of asset disposals. The last corresponding reports are dated 2005 and 2014 [1, 2]. The…
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Secret Budgets
Q26
25/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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With an MoD budget of 59.42 bn. UAH in 2016 [1], the MOD public procurement (uniform, medical supply, food, etc.) amounted to 10.15 bn.…
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Q27
50/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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All defence and security expenditures (both classified and open) are provided by the annual Law of Ukraine on State Budget. At the same time,…
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Q28
38/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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According to the Budget Code of Ukraine the reports on classified expenditures are preliminarily considered by the VRU Committee on Budget, the Committee on…
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Reports on conducted classified expenditures are considered by the VRU at a closed plenary meeting [1]. Over the past two years, the government has…
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Q29
33/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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The State Budget of Ukraine consists of two parts – general and special budget funds. While the general funds are filled generally by all…
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The only off-budget military expenditures are possible through the charitable donations. The MoD publishes on its official website information on the volumes of charitable…
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Off-budget military expenditures are common practice in Ukraine (special fund expenditures). However, those expenditures are included in the state budget file and remain under…
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Q30
50/100
Are mechanisms for accessing information from the defence sector effective?
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The Law on State Secrets regulates the existing state secrets framework [1]. The law provides procedures for information classification, types of information to be…
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This indicator is not assigned a score in the GDI. Decisions on the classification of information are made by special public officials called “state…
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The public can access information as well, as the defence and security institutions tend to provide the information requested. According to interviews with two…
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Q31
25/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
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Defence institutions and the MoD, in particular [1], own enterprises. According to the publicly available list [2], as of April 2018, of the enterprises…
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The ownership of commercial businesses is publicly declared and the MoD runs 118 enterprises (including those on the temporarily occupied Crimea) as of April…
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Military-owned Businesses
Q32
38/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
View QuestionIllegal Private Enterprise
Q33
38/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
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Ukrainian legislation provides the list of the AFU functions as well as the list of activities the AFU may be involved in [1]. The…
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There is strong evidence that individual AFU servicemen, as well as senior representatives of other defence and security forces, might be involved in illegal…
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Actual Military Spending
Q77
56/100
Is comprehensive data on actual spending on defence published during the budget year?
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The Ministry of Finance provides monthly and annual reports on the implementation of the budget in an aggregated form [1]. No further explanation or…
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The State Treasury of Ukraine provides detailed reports about the budget spending by years, quarters and months on different positions and institutions. For example,…
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Details of actual defence spending are published within six months of the end of the financial year. For instance, the annual report for 2017…
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Variances between the published budget and actual spend are not explained [1].
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