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IMF Joins Criticism of Ukraine's Crumbling Anti-Graft Efforts

Bloomberg 2017-12-07 14:49:52

The International Monetary Fund urged Ukraine to end attacks on its anti-graft agencies, joining a growing chorus of criticism of the country’s reform efforts that already includes the U.S. and the European Union.

Ukraine’s government and parliament should safeguard the independence of the National Anti-Corruption Bureau and the Special Anti-Corruption Prosecutor’s Office, the Washington-based lender said Thursday. It called on lawmakers to quickly pass legislation creating an independent anti-graft court.

“Fighting corruption is a key demand of the Ukrainian society, is crucial to achieving stronger and equitable growth and is part of the government’s commitment under the program with the IMF,” Managing Director Christine Lagarde said in an emailed statement.

Almost four years after pro-European demonstrators toppled Ukraine’s Russian-backed leader, reforms are fizzling out, transparency activists are under attack and law enforcement agencies are publicly sparring among themselves. The IMF has delayed transfers from a $17.5 billion bailout as the government fails to meet its commitments under the program.

The U.S. and the EU said this week that they’re also concerned about pressure on Ukraine’s anti-corruption bodies. The State Department warned that such actions risk eroding international support for the former Soviet republic.

President Petro Poroshenko urged lawmakers to prepare a draft law on the anti-corruption court on Thursday. If he sees no progress on the issue by the start of next week, he said he’d prepare legislation himself. Prime Minister Volodymyr Hroisman visits Brussels Friday, a week after the EU canceled a final 600 million-euro ($710 million) tranche of aid, saying targets hadn’t been met.