The BEB reform is stalled: after the failed re-certification of its leadership, a full review and relaunch of public oversight are needed
Kyiv • UNN
74% of the BEB leadership failed the re-certification, but experts consider the reform too slow and incomplete. They call for all employees to be vetted, an audit of criminal cases to be conducted, and the Public Oversight Council to be relaunched.
The re-certification, which resulted in 74% of the heads of the central office and territorial administrations of the Economic Security Bureau failing to confirm their suitability for their positions, became one of the most high-profile stages of the ESB reform. At the same time, it raised new questions: if the majority of the leadership demonstrated professional incompetence, are personnel changes at the top alone sufficient for a genuine reboot? Experts interviewed by UNN believe that the reform cannot end with merely replacing the heads; employees at all levels must undergo re-certification. A reboot of public oversight is also necessary.
The reform is moving forward, but far too slowly
Danylo Hetmantsev, Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy, notes that the reboot of the ESB is moving far too slowly.
"We see the re-certification, we see the dismissal of the most odious former tax police officers, such symbols of corruption. We see all this, we understand what is happening. Is all this happening slowly? Extremely slowly. Extremely slowly," he said in one of his interviews.
According to him, the new ESB has so far failed to demonstrate the results that business and the state had expected. "I constantly criticize the new ESB because the processes taking place are not proceeding at the pace that we, as a society and as a state, expect from this renewed body," the chairman of the parliamentary committee added.
He emphasized that the de-shadowing of the economy, for which the Bureau is responsible, is also progressing far too slowly. "De-shadowing is proceeding extremely slowly. We see this in all the figures, we see it across sectors. We cannot say that we have achieved victories anywhere, at least. Unfortunately," Hetmantsev said.
According to him, despite staffing difficulties and the outflow of employees following the re-certification, parliament expects faster results from the ESB.
Hetmantsev also recalled that the Verkhovna Rada Committee on Finance, Tax and Customs Policy criticized the ESB leadership's report and issued recommendations to the Bureau on improving the effectiveness of its work. The lawmakers plan to meet with representatives of the Bureau again in 2–3 weeks and hear a report on the results of implementing the recommendations.
Re-certification of all ESB employees
Political analyst Viktor Bobirenko is convinced that, following such disastrous results of the leadership review, the logical step should be to re-certify the entire staff of the Economic Security Bureau.
"The ESB needs to be completely rebooted, and absolutely all employees must undergo re-certification. Because political circles have long been saying that the ESB is an institution that carries out political orders. And if a state institution is being used in the interests of certain private individuals, that is always bad. Therefore, I believe everyone must undergo re-certification. Absolutely everyone," he said.
It is detectives and investigators who make decisions on opening criminal proceedings, conducting searches, seizing property, freezing accounts and taking other procedural actions that, among other things, block businesses' operations. Therefore, experts believe that without assessing their professional suitability, it is premature to speak of a completed reboot of the Bureau.
Is an audit of criminal proceedings necessary?
Following the results of the ESB leadership's re-certification, the logical step should be an audit of the criminal proceedings investigated by the Bureau, especially those in which businesses report pressure or abuse.
Bobirenko supports the idea, although he urges caution.
"The idea of auditing criminal cases is very sound. Very much so. And I think any businessperson would tell you exactly that. But here it is important not to throw the baby out with the bathwater," he emphasized.
The political analyst notes that among the criminal proceedings there are both well-founded cases and cases that investigators may have opened for other motives.
"Because very often cases are opened reasonably and properly, while others are commissioned, and others are simply a way for them to make money. For example, we come in and say that we will either open a case now, or, if you want us to leave, give us some money. We need to approach this carefully," he explained.
At the same time, lawyer Rostyslav Kravets does not believe that re-certification alone will resolve systemic problems.
"As all these re-certifications demonstrate, it is all a sham. These people who took up the positions had also been certified... And for some reason, six months or a year later, it emerges that under another re-certification they are already deemed unfit," he noted.
The lawyer believes that the main problem is the lack of proper prosecutorial oversight.
"It is necessary to restore the prosecutor's powers regarding the relevant oversight, representation in court, and the submission of respective protests. And then, with the restoration of prosecutors' powers, the proper enforcement of the law and the protection of citizens' rights in Ukraine may also be restored," Kravets is convinced.
It is worth noting that the issue of pressure on businesses from the Bureau of Economic Security (BES) has repeatedly become the subject of public debate. In particular, experts have drawn attention to the practice of using the BES's analytical findings as grounds for launching criminal proceedings. Formally, such documents are intended to help identify potential economic risks; however, in practice, they often become the starting point for opening cases, conducting searches, seizing property, and so on. Lawyers have repeatedly emphasized that an analytical product in itself is not evidence that a crime has been committed, but its use can place significant pressure on businesses even before any violations have been established by a court.
A number of Ukrainian airlines are an example of criminal prosecution based on analytical reports. The BES is investigating cases involving at least five air carriers, including MAU, "Constanta Airline," "Urga," H3Operations, and "Skyline," allegedly over the failure to pay an additional 15% tax on income paid to non-residents into the Ukrainian budget under aircraft and helicopter leasing agreements. Without any corresponding changes to the legislation, investigators equate leasing payments with royalties and treat aircraft not as means of transport but as "equipment." The aviation industry has already announced that it is under pressure and is asking the state to prepare unified explanations regarding the taxation of leasing.
Effective public oversight
Another doubt that arose after the failed re-certification of the BES leadership concerns the effectiveness of the Public Oversight Council. If more than two-thirds of the leadership did not confirm their professional competence, the question arises as to why public oversight did not point out these problems earlier.
In Viktor Bobirenko's opinion, if the state is carrying out a complete reboot of the BES, it should also apply to the Public Oversight Council.
"It (the Public Oversight Council – ed.) should have drawn attention to the professionalism of the leadership. (...) If everything is to be rebooted, then everything needs to be rebooted—the agency and the Council," the political analyst believes.
Rostyslav Kravets, for his part, assesses the activities of public oversight councils in general critically and expresses a much harsher position regarding their role.
"I believe that it (the Public Oversight Council – ed.) should be re-certified and sent to prison for high treason. Moreover, all public oversight councils, which in fact represent nothing except putting a spoke in the wheels and reducing the effectiveness of law enforcement agencies as much as possible, as well as making them dependent on foreigners. Whether at NABU, at the BES, or at any law enforcement or state agency," he noted.
Re-certification is only the beginning
The results of the review of the BES leadership effectively confirmed the existence of systemic staffing problems within the agency. However, replacing the management tier in itself is unlikely to mean that the reform is complete.
The re-certification of all employees, a review of high-profile criminal proceedings, the strengthening of prosecutorial oversight mechanisms, and the relaunch of public oversight appear to be logical next steps in rebooting the Bureau. After all, trust in the new ESBU and the effectiveness of the reform as a whole will depend on how effectively the causes are eliminated that led businesses for years to speak of politically motivated cases, abuses involving analytical findings, unjustified searches, and the blocking of enterprises’ operations.