Despite the criminal case, the NBU's chief lawyer remains in office: the regulator's image is under threat

The investigation into the criminal proceedings against Oleksandr Zyma, the chief lawyer of the National Bank of Ukraine (NBU), calls into question his professionalism and integrity as an official. He did not just make a mistake, but his actions were intentional, UNN writes.

The Case of Zyma

Criminal proceedings were opened against Zyma because of his letter to the Deposit Guarantee Fund (DGF). In the document, Zyma, who is both the director of the NBU's legal department and the chairman of the DGF's Administrative Council, recommended that the Fund withdraw the lawsuits filed by Concord Bank against the NBU on behalf of the National Bank. These claims concerned the cancellation of fines amounting to almost UAH 63.5 million and were filed before the decision to liquidate the bank.

The Deposit Guarantee Fund followed this recommendation, which, according to Olena Sosiedka, deprived of the bank's shareholders of their constitutional right to a fair trial.

In this way, Zyma may have called into question the independence of the Deposit Guarantee Fund's management, which now has a negative impact on cooperation with international financial institutions. It is possible that, for example, the IMF, due to its dissatisfaction with the situation, has begun to actively demand that Ukraine develop a procedure and hold an open competition for the position of the DGF Managing Director. 

Currently, Zyma's case has been transferred from the SBI to the Pechersk Police Department in Kyiv for investigation. Law enforcement officials told UNN that they plan to interrogate the NBU's chief lawyer, and after serving him with a notice of suspicion, investigators are likely to petition the court to remove Zyma from his duties as director of the NBU's legal department. Investigators also recognized Olena and Yulia Sosedok as victims in this criminal proceeding, confirming that Zyma's actions caused harm.

Despite the seriousness of the case, NBU Governor Andriy Pyshnyi continues to ignore the problem, while Oleksandr Zyma continues to work in his position and receive millions in income.

Reputational risks for the regulator

Zyma has put the reputation of the National Bank of Ukraine at risk with its actions. After all, who, if not the main regulator of the banking sector, should be crystal clear before the law and act exclusively within the framework of regulations, following every letter of the law?

Zyma, as the NBU's chief lawyer, was supposed to prove the regulator's position in courts using all legal instruments. However, instead, on his instructions, the DGF withdrew the claims of one of the banks. This decision clearly shows that he was aware of the weakness of his legal position and did not even try to defend it in court. Such an approach not only compromises Zyma personally, but also jeopardizes the NBU's image as a regulator.

Moreover, the official recognition of Olena and Yulia Sosedok as victims in this case confirms that Zyma's actions caused them real harm. This means that his decisions caused not only reputational risks for the NBU, but also resulted in real losses for individuals who had legal grounds to defend their rights in court.

As the Director of the Legal Department, Oleksandr Zyma is responsible for representing the NBU in courts, conducting legal expertise of documents, and ensuring the protection of the regulator's interests. If the person who is supposed to defend the legitimacy of the NBU's actions is a defendant in a criminal case, it is unlikely that he or she will continue to hold the position.

In a democratic state, the rule of law should apply without exception. That is why Zyma should be suspended from his duties while the investigation is underway. This is not only a matter of justice, but also a vital step to preserve the credibility of the regulator, which must act transparently and responsibly.