How former banker Rudukha circumvented the law by concealing a conflict of interest

Natalia Rudukha, Deputy Managing Director of the Deposit Guarantee Fund, previously worked in several banks that were declared insolvent and liquidation procedures were initiated. However, this did not prevent her, despite the direct legal prohibition, from obtaining a senior position in the state body that deals with the liquidation of banks, UNN reports.

It is known from open sources that Rudukha worked as the chief economist of the operational accounting department of Nadra Bank, which was liquidated a few years after her dismissal.

Rudukha also worked from December 2007 to June 2012 as chief accountant and deputy chairman of the board of Astra Bank, which was declared insolvent by the court.

In March-September 2015, she was the Deputy Chairman of the Board of Kontrakt Bank. Like the others, this bank was also declared insolvent in October 2015 and the process of its liquidation began.

The website of the Deposit Guarantee Fund statesthat on the eve of the introduction of the temporary administration at PJSC Bank Kontrakt, its management, including Natalia Rudukha, sold the bank's property without actually receiving funds to the accounts and transferring funds from legal entities to the accounts of individuals. This significantly increased the amount of compensation from the Guarantee Fund.

However, even such actions in the banking system did not prevent Natalia Rudusa from starting her career at the Deposit Guarantee Fund in October 2015 as a leading accountant in the department for supporting the removal of insolvent banks from the market. That is, right after the liquidation of Kontrakt began.

Rudukha quickly climbed the career ladder: in January 2016, she was promoted to the position of leading accountant of the Department for Resolution of Insolvent Banks, and in March 2016, she was appointed head of the Accounting Department for Insolvent Banks.

In June 2016, Rudukha was appointed Deputy Managing Director of the Deposit Guarantee Fund.

It is worth noting that, according to Article 11(3) of the Law of Ukraine "On the Deposit Guarantee System," Rudukha cannot hold a position in the executive directorate of the Deposit Guarantee Fund.

"Members of the Executive Directorate of the Fund may be citizens of Ukraine who permanently reside in Ukraine, have a complete higher education in economics, finance or law, at least five years of professional experience, impeccable business reputation, no outstanding convictions for committing mercenary criminal offenses and work in the Fund on a permanent basis. A member of the DGF's executive management may not be a manager, participant or related party of a bank or any other legal entity with which the DGF or a bank being withdrawn from the market by the DGF has contractual relations," the law states.

At the same time, Article 52 of the Law of Ukraine "On Banks and Banking Activities" defines bank's related parties as the bank's executives, head of the internal audit department, chief risk manager, chief compliance officer, heads and members of committees of the bank's board and management board, as well as any person through whom a transaction is conducted in the interests of the persons referred to in this part.

Thus, Rudukha has a conflict of interest. Therefore, the question arises as to how Rudukha, a former banker who worked in banks undergoing liquidation, got a senior position in the DGF and where the DGF management and anti-corruption authorities are looking?

The editorial board of UNN has sent requests for official comment on the above to the National Bank of Ukraine, the DGF, and the relevant committee of the Verkhovna Rada.