After criticism, ARMA modernizes selection of appraisers of seized assets: will it help to avoid abuse

After a wave of criticism , the head of the Asset Recovery and Management Agency, Olena Duma, announced that she would modernize the procedure for competitive selection of appraisers of seized assets. The changes are intended to make the process more transparent and accessible. UNN analyzed why ARMA took a step towards transparency and whether these innovations will guarantee a fair selection.

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ARMA shall manage assetsseized in criminal proceedings in order to preserve or increase their economic value. In order to preserve or increase the value of an asset, it must be valued and, by law, entered into the Register of Seized Assets. However, the reality often differs from the prescribed rules. In particular, this lack of transparency raises more and more questions about the work of the ARMA, including the selection of appraisers and the procedure for evaluating seized property.

Responding to public criticism, Olena Duma announced that the rules for the competitive selection of appraisers of seized assets have been updated. The new procedure provides for the electronic submission of documents, with a qualified electronic signature as a prerequisite. There are also clearly defined deadlines for submitting applications: 10 business days for the first tender and 5 days for the second tender.

In addition, the agency has simplified the requirements - now the competition is considered to have taken place even if there is only one applicant. In case of the winner's refusal, the competition commission will select the next highest ranked candidate, and in case of the competition's cancellation, a new one will be announced immediately. 

“These changes are part of our course towards digitalization and simplification of administrative procedures. The modernization of ARMA's processes continues!” Olena Duma proudly stated.

However, such changes in ARMA are not accidental, because after Olena Duma took over the agency, an alarming trend began to emerge in the competitive selection process. About 65% of the tenders were won by three companies - Ostrov Consulting Company LLC, Independent Expert Assessment Expert LLC, and Expert Analyst PE. According to insider information, all of these companies are related to each other. This situation raises suspicions of potential abuse and raises doubts about the transparency of the process. Time will tell whether the new rules will help to avoid such repetitions.

At first glance, the initiative itself seems to be correct; the only question that remains is the cost of such a modernization of the procedure: how much money will be spent on implementing the new rules and whether it will meet expectations of increased transparency.

Will these innovations guarantee a fair selection and overcome doubts about possible corruption schemes? The public will undoubtedly be watching to see whether ARMA is able to achieve real changes in the selection of appraisers, ensuring transparency and efficiency of its activities.

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Statements about the non-transparent and ineffective work of the ARMA and its head, Olena Duma, have been made repeatedly. A petition calling for the dismissal of Olena Duma from her position due to her alleged ties to pro-Russian politicians and ineffective management of seized assetshas even appeared on the website of the Cabinet of Ministers of Ukraine.

In addition, more than three weeks ago, all members of the ARMA Public Council resigned from their positions. At the meeting, they emphasized the lack of transparency in the work of the ARMA and the fact that the agency creates artificial obstacles to the implementation of public control over its activities. They also stated that the ARMA management systematically ignores their appeals and does not involve them in the development of regulations, in violation of the law.

One of the issues that gives rise to suspicions of non-transparency in the work of the ARMA is the competition for asset appraisers and the appraisal procedure itself. For example, recently, the head of ARMA, Olena Duma , reportedthat the agency had received an appraiser's report on the value of the Gulliver shopping center in Kyiv. It is worth noting that ARMA employees were not able to conduct a full inspection of the entire Gulliver shopping center and business center. After all, after the performance with the cover numbers, the “mom's agents” were still forced to act in accordance with of the law. Accordingly, if a full inspection of the asset has not been carried out, how can its value be objectively assessed?

Lawyers also emphasize the illegality of such an assessment. In particular, the managing partner of GRACERS Law Firm Serhiy Lysenko statedthat property valuation should be based on legal procedures, which, among other things, include a physical inspection of the object. If the procedure is carried out without inspection, this may call into question the objectivity of the assessment and become the basis for its appeal.