The Committee of the Verkhovna Rada (the Ukrainian Parliament) recommended that the Parliament adopt draft law No. 10439, prepared in a new version, on the reform of the Bureau of Economic Security (BES).
This was reported on April 8 by the Chairman of the Verkhovna Rada Committee on Taxes and Finances Danylo Hetmantsev.
The new edition for the repeated first reading provides for:
- selection and submission to the Prime Minister of Ukraine for consideration of no more than two candidacies for the position of director of BES;
- the first deadlines for independent evaluations (audits) of the effectiveness of the BES activity (the evaluation is carried out by the commission after the end of the first and third year as the director of the BES);
- a revised mechanism for certification of BES employees, the term of which cannot exceed 12 months from the date of appointment to the position of BES director;
- the director of BES forms a new disciplinary commission.
The MP from "Voice" and a member of the committee Yaroslav Zheleznyak complained that this version of the project was not agreed with partners and did not include comments from business.
"With a lot of mistakes and loopholes for later appeals in the courts," added the MP, emphasizing that 17 MPs supported the document at the committee, and one was against it.
Why is this important?
Restarting the Bureau of Economic Security (BES) has become one of the conditions for Ukraine in the International Monetary Fundʼs (IMF) extended financing program. Support from the EU is tied to this reform. However, the government bill goes against the proposals of the partners.
The memorandum with the Fund talks about making changes to the current law that regulates the activities of BES. The key goal is to develop transparent criteria for the selection of staff and management of the bureau. The document also states that BES should be subordinated to the Ministry of Finance, and not to the direction of the government, as it is now. A group of ambassadors of the "Big Seven" countries is asking to reform the Security Council, strengthen its independence and effectiveness. This is in the list of priority reforms for 2024.
On December 29, 2023, the Cabinet of Ministers approved and submitted to the Verkhovna Rada a draft law that proposes to "restart" the work of BES, but it was criticized by the Central Committee and some peopleʼs deputies.
Already on February 12, 2024, the Verkhovna Rada registered draft law No. 10439-2, which is an alternative to the one previously submitted by the Cabinet of Ministers.
Analytical centers also opposed the government bill: Institute of Socio-Economic Transformation, CASE Ukraine, Institute of Tax Reforms, Center of Economic Strategy. The European Business Association asked to support the alternative draft law No. 10439-2, because it believes that it will be able to really reform BEB and make it independent.
On February 23, the Verkhovna Rada failed to vote in the first reading on draft law No. 10439. It was sent for a second first reading with a shortened consideration period.