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Viewing cable 06KIEV947, Ukraine: International Anticorruption and

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Reference ID Created Released Classification Origin
06KIEV947 2006-03-13 09:39 2011-08-24 16:30 UNCLASSIFIED Embassy Kyiv
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS KIEV 000947 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR KCRM
SUBJECT:  Ukraine:  International Anticorruption and 
Good Governance Report 
 
Ref:  State 30961 
 
Sensitive but unclassified.  Not for internet distribution. 
Please handle accordingly. 
1. (SBU) In 2004, the Ukrainian people radically changed 
Ukraine's political landscape by standing up for their rights and 
successfully demanding that the results of the Presidential 
election reflect their will in what was known as the "Orange 
Revolution."  In a watershed decision that demonstrated the rule 
of law over entrenched, corrupt power, the Supreme Court 
invalidated the falsified second round of the voting and called 
for a repeat vote.  These events, which have changed the 
underlying dynamic between Ukrainian citizens and their 
government, created the possibility for advancing the rule of law 
and strengthening the fight against corruption. 
2. (SBU) The new Ukrainian Government which took power in 
February 2005 was the first government dedicated to fighting 
corruption.  It faced serious challenges in delivering on the 
populace's very high expectations for improvement.  At issue were 
a government and economy pervaded with corruption; the task was 
not simply to root out discrete pockets of corruption.  Over the 
government's first year in office, there have been success 
stories.  Empowerment of the Internal Affairs Department within 
the Ministry of Interior led to the prosecution and firing of 
thousands of corrupt law enforcement officials who had preyed 
upon the public.  The "Contraband - STOP" program focused on 
rooting out endemic corruption in the customs service.  This 
program helped recoup tariff revenues of $424.5 million for the 
government coffers in 2005.  By closing loopholes favoring the 
well-connected, and by increasing integrity and enforcement 
within the State Tax Administration, the government posted 46.8 
percent growth in tax revenue over 2004. 
 
3. (SBU) Public perceptions of corruption, however, improved only 
slightly.  A Prosecutor General held over from the previous 
regime through October 2005, delays in initiating reforms of the 
judicial system, and the absence of a monitoring system underline 
the tremendous scale of the problems and the work that remains to 
be done to build integrity into state institutions.  Anti- 
corruption programs largely are demand-driven in Ukraine; free 
media, public awareness, and the high expectations of citizens 
have created political demands that corruption be eradicated in 
Ukraine.  For the first time in Ukraine's history as an 
independent country, a government was dismissed (in September 
2005) following public allegations of corruption. 
 
4. (SBU) In 2005, the USG initiated new programs and expanded 
existing programs to help the new government in its anti- 
corruption efforts.  In the economic sector, USAID's anti- 
corruption programs included land titling, deregulation efforts 
including support for "one-stop shops" for business registration, 
municipal budget reform, commercial law, and WTO accession 
support.  The commercial law program provided drafting support on 
key laws including Bankruptcy, Commercial Procedure Code, 
Enforcement of Judgments, and Joint Stock Companies. 
 
5. (SBU) USAID's democracy and good governance programs supported 
a series of Parliamentary hearings on anti-corruption, drafted 
anti-corruption related legislation, trained NGOs in hearing 
procedures and policy analysis, supported multiple NGO watchdog 
and advocacy initiatives at the local, regional, and national 
level, trained journalists in investigative reporting, launched a 
Ukraine-wide anti-corruption information campaign, and promoted 
transparency in elections through election commissioner training, 
non-partisan voter education, and support for domestic and 
international elections observation.  In the health sector, USG 
helped increase transparency in policymaking, finance, and 
procurement of tuberculosis and HIV/AIDS drugs through the 
development of a national policy group and an HIV NGO coalition. 
In education, a partnership with the GOU was launched to 
implement a comprehensive system of national testing for college 
admissions to combat rampant corruption in an area that affects 
virtually all families in Ukraine. 
 
6. (SBU) In the criminal justice and law enforcement spheres, 
State/INL initiated programs to strengthen the independence and 
transparency of the judiciary and enhance the professional 
qualifications of judges and defense attorneys, thus ending the 
Soviet legacy of prosecutorial supremacy.  State/INL also 
initiated programs to support drafting a new criminal procedure 
code, bringing greater transparency to the pre-trial system, and 
promoting integrity awareness among midlevel managers and 
training staff in both the Customs and Border Guard Services. 
The USG has also supported the drafting of a comprehensive 
structural reform program for Ukraine's law-enforcement system 
along European Union norms, including a comprehensive approach to 
prosecuting corruption. 
 
GWALTNEY