On 2 March 2017, the National Agency on Corruption Prevention approved the Typical Anti-Corruption Program for Legal Entities (the Typical Program) by its Decision No. 75. Under the Decision, certain legal entities must adopt an Anti-Corruption Program (the Program) in line with the Typical Program. In particular, the Program is mandatory for all companies (even private companies that are foreign-owned) which participate in the public procurement procedure for projects exceeding UAH 20 million.
Basic requirements under the Program
The Program is compulsory for all employees, corporate officers and founders of a company, as well as for the business entities over which the company exercises control.
Under the Decision, companies must do the following with regard to the Program:
- establish standards and requirements that are not lower than those provided by the current laws and the Typical Program;
- discuss the Program with employees and corporate officers prior to its approval by the company's CEO;
- place the Program in an open-access area, accessible not only to the company's employees but also to its business partners.
Amendments to the Program
Proposals to amend the Program can be submitted by any company employee or founder to the employee responsible for implementing the Program (the Authorized Person). The Authorized Person must then pass such proposals to the company's CEO. In turn, the CEO must openly discuss the proposals with all employees and founders. Only after receiving their approval can the CEO issue an order to amend the Program.
Provisions of the Typical Program include the following:
- a list of the company's anti-corruption measures (in particular, corruption risk assessments, performance of anti-corruption standards and procedures provided by the Program);
- carrying out corruption risk assessments at least once per year by the commission for assessing corruption risks, which should be established by the company;
- providing in internal regulations, regulations on structural divisions of the company and employment agreements that the Program is mandatory;
- instructing the company's employees as well as individuals acting on behalf of the company on the anti-corruption laws and the Program;
- rights and duties of the Authorized Person, as well as the procedure for his/her reporting to the company's founders;
- placement of the results of the Program's performance in an open-access area in paper and/or electronic form, as well as on the company's website;
- order on informing the Authorized Person on violations of the anti-corruption provisions;
- procedures for the protection of employees who have notified about violations of the anti-corruption provisions (such as prohibition from terminating such employees, applying disciplinary sanctions, transferring such employees and changing employment terms);
- procedure for internal investigations.
Companies that wish to participate in public procurement in Ukraine if the purchase of procurement is significant (i.e., more than UAH 20 million) should review their Programs and adjust them in accordance with the Typical Program and the Decision.