More than 70% of the business in Ukraine saw no progress in fighting corruption

More than 70% of the business in Ukraine saw no progress in fighting corruption

Moscow. March 31. The majority of Ukrainian and working in the country of European companies (73%) do not see progress in fighting corruption over the past two years, according to a survey on perception of corruption of the American chamber of Commerce (ACC), presented in Kiev on Wednesday.

According to the head of the working group of the ACC on questions of counteraction of corruption Igor Svitlica, 35% of companies also believe that the newly established anti-corruption bodies in the near future will not be effective in controlling corruption, 29% hold the opposite opinion. “But it was a third of respondents who are undecided, and in their comments expressed the hope that there will be (effective). The majority either believes or hopes that they will be effective,” he said.

Thus, according to the survey, almost all companies (98%) believe that corruption is widespread, and the vast majority (88%) of encountering it in the course of business in Ukraine.

However, the head of raggruppa pointed to clear positive growth trend: the number of companies that do not think it necessary to resort to corrupt practices to enhance their chances of success (from 39% in 2014 to 65% in 2015).

In addition, Switlik noted some positive moments in the fight against corruption, in particular, significant deregulation procedures, the adoption of a new procurement law, allowing to make tenders more transparent and to save money, as well as a significant increase in the profitability of state-owned enterprises, indicating that lower levels of corruption. In turn, the company the greatest success in the fight against corruption has called the creation of the patrol police (43%) and the deregulation of procedures (five percent). 51% of companies stated lack of any significant progress.

The majority of business representatives also expressed willingness to cooperate with law enforcement agencies on corruption issues. At the same time, by results of 2015, only seven percent of companies had successful experience of such cooperation and only two percent experience the effective punishment of corruption by a court.

According to the survey results, the most common are these types of corruption as the bribe requirement for the adoption or acceleration of adoption of decision/permit (this kind of corruption indicated 82% of companies), abuse of official position for receiving improper benefits (75%), the requirement to provide a “kickback” to ensure winning in the public procurement (52%). As the most corrupt bodies of businessmen point the courts (87%), prosecutors (61%) and local authorities (39%).

The most effective methods of combating corruption, the business considers the change of personnel in the most problematic bodies (72%), appropriate level of wages (57%) and more severe punishment (47%). At the same time, the greatest obstacles to overcome this phenomenon, the company believes the lack of political will (48%), resistance to reform on the part of authorities (27%) and the mentality of Ukrainians (17%).

The survey was conducted in the period from March 2014 to October 2015. It was attended by 99 companies in various sectors of the economy, a third of which – small companies, 10% local. The most active were representatives of the legal business, consulting, banking and financial sector, ICT industry and the food sector.