Human rights activist: Director of the NBU Legal Department violated the right of Concord Bank to a fair trial

If the State Bureau of Investigation brings the case against Oleksandr Zyma, Director of the Legal Department of the National Bank of Ukraine, to a conclusion, it will be good for millions of citizens who are waiting for justice. This was stated by human rights activist Eduard Bagirov in an exclusive commentary to UNN.

Earlier, UNN learned from its own sources that the State Bureau of Investigation opened a criminal proceeding on the fact of possible abuse of power or official position, which led to serious consequences, by the director of the legal department, Oleksandr Zyma. The criminal case concerns a letter from the National Bank to the DGF signed by Zyma, who is also the chairman of the administrative board of the Deposit Guarantee Fund. In the letter, he recommended that the DGF drop four lawsuits that Concorde Bank had filed against the NBU before the decision to liquidate the bank and introduce a temporary administration was made. The DGF implemented Zyma's recommendation.

"Zima violated the rights of Ukrainian citizens and the bank (Concorde - ed.) to a fair trial with his recommendations and the withdrawn lawsuit. Only during the trial and after examining the arguments of the parties can the court  make a fair decision. When the decision is made by an official in his office, it is not right," Bagirov said.

According to him, Zyma should be punished if his official crime is proven.

"I am almost sure that the head of this NBU unit committed a malfeasance, I am 99% sure, and he should be punished," Bagirov said.

He recalled that Concorde Bank had filed lawsuits against the National Bank of Ukraine before the decision to liquidate the bank was made and the interim administration was introduced. That is, at the time of filing the lawsuit, Concorde was not dependent on the decisions of the Deposit Guarantee Fund's administrator. Therefore, the DGF had to wait for the court's decision.

"Therefore, a letter from the head of a certain department of the NBU is an interference and a violation. But if the SBI manages to collect the necessary evidence and this official is not only deprived of his position, but also of his freedom for violating the Criminal Code of Ukraine, it will be very good for millions of Ukrainian citizens who are waiting for justice, who are waiting for this state body - the Fund - to work within the framework of the laws and the Constitution. But it does not work within the legal framework. Therefore, if the SBI brings this case to the end, I personally, as a human rights activist, will send a letter of gratitude to the head of the SBI," Bagirov promised.

According to the human rights activist, the case against Zyma will be successful if the media and society's attention is constantly focused on it. 

He added that the current situation is such that the heads of the NBU and the DGF are acting solely in their own interests. "Citizens of Ukraine, depositors or owners of bank shares, do not matter to the fund if there is no personal benefit for the fund's managers or the National Bank," Bagirov said.

Recall

Despite the war in Ukraine, the process of removing banks from the market has not stopped. Thus, as of February 24, 2022, the liquidation process was initiated against 8 banks. This year, for the first time in Ukraine, not only bankrupt banks but also profitable institutions were subject to liquidation and license revocation, including Concord Bank. The process of depriving a banking institution of its license takes place without a court. Of course, the owners and shareholders of banks may appeal the decision of the regulator, the NBU, after it has made a decision to liquidate the bank, but in general, the process of withdrawing a banking institution from the market, once it has been launched, is irreversible. 

In addition, the issue of liquidation of a profitable bank has not been regulated in Ukraine. According to Olena Sosedka, co-owner of Concord Bank, at the time the regulator announced the decision to liquidate the bank, the financial institution had enough highly liquid assets to make all the necessary payments in 2-3 weeks. But the process of bank liquidation is strictly regulated by law and can generally take up to three years.