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NAPC: "The document signed by the President, contains the corruption risks and cannot be implemented"


The National Agency for the Prevention of Corruption (NAPC) sent a letter to President of Ukraine Volodymyr Zelensky, in which warnings regarding the law "On State Regulation of Activities for the Organization and Conducting of Gambling" are expressed.
  • Gambling legalization
  • 2020-09-16 10:54:51
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NAPC: "The document signed by the President, contains the corruption risks and cannot be implemented"

The NAPC noted that despite the fact that this document is aimed to reduce corruption, it contains corruption risks and in fact can not be implemented because of its provisions are contradictory. The implementation of the law in this wording will lead to the emergence of corruption schemes in obtaining permits, will prevent fair competition and transparent rules of business in the field of gambling.

Earlier, the NAPC conducted an anti-corruption examination of the law, revealing more than two dozen significant corruption risks, including:

1. The procedure of forming the composition of the Commission for the Regulation of Gambling and Lotteries contradicts the Constitution of Ukraine, and the required number of its members for decision-making is not clearly defined.
2. The wide discretionary full powers of the Commission (possibility to act at its own discretion) in determining the list of economic entities that will carry out certification and inspection of gambling equipment may lead to subjective decisions of its members and the formation of corrupt practices.
3. The introduction of new permits without amending the Law of Ukraine "About the list of permits in the field of economic activity" may lead to abuses during state supervision (control).
4. The grounds for obtaining and revoking a license to conduct activities in the field of gambling are not clearly defined. Therefore, the Commission will be able to abuse its authority and issue licenses to selected companies.

In addition, the signed law cannot be implemented due to the presence of two contradictory provisions in its text.

After the anti-corruption examination, its results were sent to the Committee on Finance, Tax and Customs Policy of the Verkhovna Rada. The main legal department of the Verkhovna Rada also stated about the risks in the law. Nevertheless, the NAPC's recommendation was not taken into account in the voted second-reading text.

The National Agency hopes that the President will initiate changes that will eliminate these corruption risks and make the law enforceable.

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