Transparent governance, independent audit, new rules for selecting the head: what the law on ARMA reform will change

The Verkhovna Rada has finally adopted the draft law on the comprehensive reform of the Asset Recovery and Management Agency; now the document must be signed by the President. This decision will not only launch the process of rebooting ARMA but also unlock about 600 million euros in assistance for Ukraine from the EU within the framework of the Ukraine Facility Plan. Will there be real changes in the agency's work, UNN investigated.

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The day before, parliament supported the draft law №12374-d on amendments to certain legislative acts of Ukraine on strengthening the institutional capacity of the National Agency of Ukraine for detecting, searching, and managing assets derived from corruption and other crimes, and improving asset management mechanisms with 253 votes.

As noted by Transparency International Ukraine, this draft law:

• standardizes asset identification procedures;
• improves the management of various types of assets;
• increases the transparency of ARMA's operations;
• unlocks the management of corporate rights of companies associated with the aggressor state;
• regulates issues of seized sanctions assets.

In addition, the head of the Verkhovna Rada anti-corruption committee, Anastasia Radina, emphasized that the draft law paves the way for an independent audit in ARMA, introduces a transparent selection process for leadership with the participation of international partners, and also a no less important component – a new transparent procedure for selecting managers for seized assets, which will significantly complicate the agency's ability to act in favor of private rather than public interests.

"We are waiting for the President's signature," added the MP. G7 Ambassadors have also already welcomed the adoption of this document and emphasized that sustainable progress in reforms is important for Ukraine's Euro-Atlantic integration.

"Its implementation is key to an independent asset management system, which will strengthen Ukraine's anti-corruption efforts and ensure budget revenues," the ambassadors' message reads.

The head of ARMA, Olena Duma, who had been sabotaging the draft law on ARMA reform for several months, tried to present the adopted decision as her own "victory" , while not abandoning her strategy of criticizing the document until the very end.

"Only time will tell whether this is a defeat for the legal system or a victory, and how these norms will work… Whether the anti-corruption committee followed the Verkhovna Rada regulations and transparency on the path to its approval is already a rhetorical question. But I will definitely note that no European country adopts such immediate decisions without inviting the agency and negating negative conclusions from authorities. We did not remain silent, but openly spoke about the initiated norms of the law that do not comply with EU principles or contained dubious mechanisms. After all, we have to implement it and bear responsibility. We professionally defended the agency's position, and today ARMA's and society's victory is that there are no critically negative provisions in the law," Duma emphasized.

She also traditionally emphasized that the ARMA reform was initiated precisely due to her appointment.

"The reform initiated by us is now officially enshrined in the legislation of Ukraine and has received the necessary legal basis for effective functioning… The reform will allow ARMA to work even more effectively, ensuring maximum transparency of all procedures and attracting the best managers through competitive procedures," added the head of ARMA.

The adoption of the law is only the first step. The next critically important stage should be an independent transparent audit of the agency's work, which should show the real results of managing seized assets and become the basis for personnel decisions.

As MP Yaroslav Zheleznyak noted, the draft law was adopted after months of blocking.

"New requirements for the head; selection procedure involving international experts; transparent asset management mechanism; control over asset transfer. And another 600 million euros from the EU will be unlocked," he added.

Parliament has taken its step; now, when the President signs the law, an audit of ARMA's work should be conducted as soon as possible. And if its results confirm what deputies, journalists, and anti-corruption experts have repeatedly stated, those responsible must resign and be held accountable before the law.