Draft bill #10339 of December 13, 2023
Cosponsors: Cabinet of Ministers of Ukraine
Status: sent for review to the Committee on Finance, Taxation, and Customs Policy
Who is affected: legal entities that directly or indirectly manage, receive, and/or use international assistance, the Ministry of Finance, and auditors
Summary:
- legal entities that directly or indirectly manage funds from international financial assistance will be required to submit financial reports to the Ministry of Finance
- an automated information system will be created to keep financial and/or other reports of legal entities that directly or indirectly manage, receive, and/or use international assistance
- the Ministry of Finance will define criteria for audit companies, which will have the right to provide their services to legal entities dealing with international assistance.
What is right: regulations proposed by the bill are one of the mechanisms of corruption prevention in dealing with funds from international assistance.
What is wrong:
- the bill creates additional red tape for legal entities working with international assistance
- too many subjects will be affected by the law. According to the current version of the bill, financial control and audit will affect all legal entities that are affiliated in any way with international assistance.
Alternative solution:
- the bill should list the categories of legal entities that have to submit financial reports and undergo audits
- clear definitions should be provided of what constitutes “indirect management,” “receipt,” and “use” of international assistance.