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Ukraine's "e-declared revolutionaries"

Author : News agency Day

12:44, 1 November 2016
Ukraine's "e-declared revolutionaries"

Author : News agency Day

How can people cope with the cynical reality and learn to find an alternative?

12:44, 1 November 2016

 Read the original text at day.kyiv.ua.

miridei.com

After the electronic declaration by public officials of their income, the country is experiencing a shock. It is not something new for society to know how wealthy is our so-called political elite, but a statement of this fact corroborated the cynics of our "tops." Mass media and social networks literally exploded from commenting and analyzing the e-declaration.

What is positive?

Despite the difficult path of the law of e-declaration when the power itself repeatedly inserted a stick in the wheel that has been significant, the decision still managed to hold. "Together many cool people hardly initiated, and later miraculously retained," wrote in his FB chairman of the Center for Combating Corruption Vitaly Shabunin. Recall the introduction of e-declaration is a prerequisite for visa-free regime with the European Union. The software package for collection, storage and processing of electronic declarations Ukrainian officials was developed with funding from UNDP and later transferred to the National Agency for the Prevention of Corruption Ukraine (NAPCU).

Related: Second wave of e-declaration to last from January 1 to April 1

Thousands of e-declarations of officials that can be viewed on a special website public.nazk.gov.ua. Only a few examples. MP from the faction "People’s Will" Oles Dovgy declared 95 paintings of XIX-XXI centuries, 10 sculptures, 11 watches and 1,5 mln dollars in cash in 2015. But MP from the "MFP" Anatoly Matviyenko pointed out even possessing Dormition Abbey in Berlivtsi, Vinnytsia region. Interior Minister Arsen Avakov except three apartments, two plots of land, declared a collection of wines, coins, paintings, stamps and plates. In MP from the "Bloc of Petro Poroshenko" Igor Kononenko - building in Kyiv of 1643.6 square meters. This is a record among officials.

President Petro Poroshenko declared ownership in more than 100 companies in Ukraine, Russia, Poland, Spain, Cyprus, Hungary, Lithuania, and China, the British Virgin Islands and the Netherlands, the salary in the amount of 121 054 UAH, interest in the amount of 12,375,404 and investment income in the amount of 49,665,361 UAH. His declaration President gave just a few hours before the deadline. Cash (as others mentioned funds) in the amount of 60 thousand dollars and 900 thousand UAH is held in JSC "MIB" where he owns 9,000 shares, par value of which is 13,518,000 UAH. Contributions to credit unions and other non-bank financial institutions are 8,190,000. UAH. Bank accounts –  540,478 UAH, 26,324,870 dollars, 14,372 euros.

Related: Leader of Batkivshchyna parliamentary faction files her digital declaration of incomes

Officials do not like the hryvnia

At the start of filling electronic declarations specialists joked be based on the collected data to rank the reliability of Ukrainian banks.

Former commander MP Serhiy Melnychuk that represents the group "People’s Will" already in 2015 had a "cache" a trillion (!) UAH. And this is despite the fact that in the electronic declaration Melnychuk’s income for 2015 amounted to parliamentary salary in 73 thousand UAH.

Experts have calculated that million, if it is packed in banknotes of 500, weighs about 2.3 kilograms. One million euros in banknotes 500 euro weighs about 2.2 kilograms. One million dollars banknote in the most accessible in Ukraine in denominations of $ 100 (for information banknotes of five hundred, a thousand, five thousand, ten thousand dollars, which produced only 42 pieces, to export from the United States strictly forbidden) - 8 kilograms.

Related: First round of filing e-declarations for 2015 is finished

The biggest dollar heavyweight, according to the portal of e-declarations is the MP who "sold his Rolls-Royce and went to the ATO, Vyacheslav Konstantinovskiy - almost 120 kilograms (14.7 million dollars). But Prime Minister Vladimir Groisman is hryvnia heavyweight. He declared almost a little more than five kilograms of cash in local currency (2.4 mln UAH), another pound into euros (460 thousand euros) and nearly seven kilograms in dollars (870 thousand dollars), has three kilograms of " hryvnia "denominations of $ 500 and - 100 remained in 2015, his wife, (1.6 mln. UAH and 372 thousand dollars cash respectively). A special love for cash has young reformer, former head of Tax Service and now head of the State Property Fund Igor Bilous. He pointed out that in the post-revolutionary war and has 2015 and he kept at home almost eight kilograms dollars (970 thousand dollars), three kilograms hryvnia (1.2 million UAH in cash) and a couple of grams of EUR - 140 thousand euro.

Related: Savchenko’s declaration: Sister’s cars and mother’s land

But the family of the Minister of Finance Olexander Daniluk has little more confidence in the banking system. However non-Ukrainian. In 2015, he had two accounts in Ukrsotsbank (1.243 thousand dollars and 3.226 thousand) and expense in Privatbank (1,067 thousand). But most money placed his wife - 15,7 thousand pounds - in stores in the British National Westminster Bank Plc.

But Valery Hontaryeva, as befits the head of the National Bank, their savings, really keeps her savings within the banking system in Ukraine. However, largely not in local currency. In 2015, bank accounts of Hontaryeva’s family was 1.161 934 million UAH, and almost 26 times the amount in dollars - 1.831391 million USD.

Related: Poroshenko’s declaration: Four vehicles, five watches, property rights in over 100 companies

We asked the economist, financier and banker, rector of the International Institute of Business Olexander Savchenko explain this massive love of the Ukrainian politicians to cash.

So according to Savchenko, there is a number of reasons.

  • The first - "the poor quality of the management of the National Bank, is the same - some supervision over commercial banks and expectations of further bankruptcies of commercial banks." In simple words, MPs and ministers know what they are really capable of governing the state. I do not trust themselves their money.
  • The second reason - the imperfection of current legislation of Ukraine. "In fact, no one can check officials for cash. Some that are really super rich and have a source of income, significantly underestimate the amount of cash they keep in the vaults. Others on the contrary "imagine zero." They really do not have so much cash, and they declare it. This is to ensure that they can later buy an apartment, valuables, etc.," explains the expert.

The state should prohibit officials keep money in cash over a certain amount. By European standards, it is 10 thousand euros. Everything else should be on the bank account.

Related: Groysman provides electronic declaration of his possessions

What is next?

After the publication of their declarations by officials, one of the main questions is what are the actual consequences? Our country to face real bloody revolution or peaceful long stagnation and inglorious death in the muddy waters of the "Russian World". The therapist is powerless, surgeon or pathologist should help.

Related: Poroshenko declares 800 000 hryvnia and 60 000 of dollars of cash

MPs, ministers, and judges declared these mattresses of cash, Churches, collectible books and ancient icons, and what? It is interesting from the perspective of the state, it is the question of legal consequences. First, can the police initiate an investigation on the sources declared approval of property and cash in our officials? Specifically: to compare the amounts of paid taxes and the property declared in the declaration.

Theoretically, there is such an option, said the Center for Combating Corruption. But in practice, the activists would not advise law enforcement agencies in this climb. In this context, mention the "Melnychenko tapes", which actually fixed principles enrichment in Ukraine. It is the largest document that explains how things are done in the country, both in Kuchma's office distributed wealth. These films should be used not for gossip, but to conclusion.

Related: Scandal with Leshchenko showed weakness of law on declarations - Leonid Antonenko

History of the problem

"How it happens that one of the poorest countries in Europe, whose officials travel around the world and ask for money, are among the richest in the world?

In fact, these declarations are the result of "system of Kuchma" and lost the chance in 1999, is a large-scale robbery disguised in different sets. When in the spring of 2016 first discussed the possibility of appointing a new government, "Day" offered their version of alternative "national team" of headed by Volodymyr Lanovyi, the Minister of Economy of Ukraine (1992), head of the State Property Fund (1997-1998.), MP II, V and VI convocations.

Related: Prosecutor General hands over his declaration of incomes

"The first accumulation had the red directors who looted the USSR. These people are living abroad. The second wave of frenzied accumulation of capital - is the second half of the 90s, when the new owners, who in fact took a large number of enterprises. The so-called oligarchs. Their business they earned at state enterprises privatized and seized cash flows to service budgets and the like. So since late 90s during the presidency of Leonid Kuchma, we have oligarchic system. After oliharhat de facto runs the country, the government, parliament and the president," notes Volodymyr Lanovyi.

"Another reason why some members of bureaucratic origin have large amounts of money is election fraud. There were huge monetary contributions and the theft of money from election funds. I think that a lot of people that are now appearing in Parliament are sitting on these flows. The usual bribes will not be able to provide such great savings. Just do not forget that such defamation power is very harmful to the state in the international arena, because it depends on the trust of investors, creditors and the situation of sanctions against Russia," said Lanovyi.

Related: People's Deputy Novinsky Declaration: 79 companies, more than 105 million UAH of dividends

"Almost for 26 years no one has declared his property, - writes political scientist Sergey Zhydko. - This does not mean that there were deputies and officials with shadow incomes. The foundation was laid by Kuchma entourage. Today we do not see declarations of the richest ones. Politically it looks like we have allowed Ukraine to form a class of rich and super rich. He skillfully used offshores - his wealth is out of reach. We will see if people learn to vote on those declarations."

Related: Justice Minister: Amendments to law on e-declaration possible

Related: E-declaration system re-launched

Article prepared by Valentyn Torba, Alla Dubrovyk-Rokhova, and Ivan Kapsamun.

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