Corruption in the Ukraine

While the war in Ukraine’s east again threatens to explode into open conflict, Kiev is simultaneously fighting an even greater impediment to Ukraine’s long-term stability: endemic corruption.

According to the most recent figures from international corruption watchdog Transparency International, Ukraine was ranked 144 out of 177 countries on its Corruption Perceptions Index, placing Ukraine at the bottom of the rankings — tied with Cameroon, Papua New Guinea, Nigeria and others.

While Ukrainian government graft is widespread, public procurement corruption tops the list of challenges that the government in Kiev must confront. Ukrainian Prime Minister Arseniy Yatsenyuk has stated that Ukraine’s government makes about $25 billion in purchases in state purchases yearly, 40 percent of which — or $10 billion — is lost through graft.

“Public procurement is the most problematic sector where corruption is rife. Sometimes for certain things, the level of corruption in a tender can be up to 40 to 50 percent,” said Sergiy Gula, a government procurement expert at Transparency International Ukraine.

“The most common type of corruption in government tenders is either unlawful use of a single party or an associated company — a fictional competition or tender is won by a predetermined firm, even with the worst and most expensive proposal,” Gula said.

Corruption in the purchase of drugs for HIV/AIDs uncovered by the Anti-Corruption Action Center in Kiev supports Gula’s point. In a typical scheme, several companies controlled by one owner “compete” with each other to win millions of public funds. The end result of drug corruption procurement is that only 43 percent of HIV-infected patients obtain the drugs they need.   Corruption in Ukraine

Corruption in Ukraine

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