Investigations with a flavor of impunity: actions of the NBU Chief Lawyer undermine confidence in the banking system

The speed and transparency of investigations into criminal proceedings against public officials are critical to maintaining trust in institutions, ensuring justice and adherence to legal standards in Ukraine. Delaying such cases undermines public perception of the justice system, creates an impression of impunity and can negatively affect international relations, in particular with Western partners who expect Ukraine to take transparent and effective anti-corruption measures, UNN writes.

Effective investigations against officials are the foundation of the rule of law. Ukraine's international partners have repeatedly pointed out to the Ukrainian authorities the need to bring criminal proceedings against officials to a logical conclusion, which would demonstrate improvements in the fight against corruption. When investigations are delayed, several serious problems arise.

In particular, when the public sees cases against high-ranking officials "stuck" in the offices of law enforcement agencies, it causes them to lose faith in the state's ability to punish those who break the law. This undermines trust in law enforcement and confidence in their independence.

In addition, delays in investigations of cases against officials can have a negative impact on international relations. Ukraine, especially now, during the war waged by Russia, is under constant scrutiny by international partners such as the IMF and the EU, which often demand anti-corruption and transparency in personnel policy. Examples of delays in cases may reduce the level of trust of these partners in the state and slow down the processes related to the allocation of financial assistance, which is currently critical for our country.

Slow investigation of cases against officials or attempts to "bury" them may allow officials to avoid responsibility, especially if public attention to these cases gradually fades. In this way, officials are likely to feel confident in their impunity.

In addition, in an unstable political situation, unfinished investigations can be used for political pressure or even blackmail, as well as for reprisals against opponents in the future.

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One of the most striking examples illustrating the need for quick and effective investigations is the case against Oleksandr Zyma, Chief Lawyer of the National Bank of Ukraine (NBU).

Oleksandr Zyma, director of the NBU's legal department, became a subject of criminal proceedings on suspicion of abuse of office.

The case was initiated by Zyma's letter to the Deposit Guarantee Fund. In the document, Zyma, who is also the chief lawyer of the National Bank and the chairman of the Administrative Council of the Deposit Guarantee Fund, recommended on behalf of the National Bank that the Fund withdraw the lawsuits filed by Concord Bank against the National Bank of Ukraine.

It was about four lawsuits in which Concorde demanded to cancel fines totaling almost UAH 63.5 million. They were filed even before the National Bank decided to liquidate Concorde and put it under temporary administration. 

The Foundation followed the recommendation it received on behalf of the regulator. The letter contained a digital signature of Oleksandr Zyma.

According to Concorde co-owner Olena Sosedka, Zima deprived the bank's shareholders of their constitutional right to a fair trial by his instructions. 

Currently, the criminal proceedings against Zyma have been transferred from the SBI to the Pechersk Police Department of Kyiv for investigation. Law enforcement officials told UNN that they plan to identify the victims and interrogate the chief lawyer of the National Bank. Also, after Zyma is served with a notice of suspicion, investigators will petition the court to remove him from his duties as director of the NBU's legal department. This gives us hope that Zyma's case will be investigated and brought to court.

The case of Zyma, who is also the chairman of the Administrative Council of the Deposit Guarantee Fund, has attracted the attention of the IMF, which is actively demanding an open competition for the position of the DGF director. The unresolved situation and the accusations against Zyma call into question the transparency of appointments and the independence of key bodies, which could negatively affect Ukraine's interaction with international financial institutions.

In addition to the legal aspects, the case against Zyma also calls into question the transparency of the regulator's actions, which negatively affects confidence in the banking system and may harm relations with international partners.

Despite the seriousness of the accusations, the NBU management did not even initiate an internal investigation, which caused a wave of criticism. Officials of this level should be an example of responsibility, and ignoring this case may leave the impression that the law does not apply to them.

We note that trust in the banking sector and financial institutions is a key element of stability. Failure to investigate corruption crimes may undermine this trust, which will have a negative impact on the entire system.