Ukrainian Business Ombudsman Institution (BOI)

Location:

Ukraine

TCRS Number:

365

Business sector:

Economics

Notice type:

Public

Status:

Approved

PSD disclosed:

04 Jun 2021

Project Description

The Business Ombudsman Institution (BOI/BOC) was established under the Memorandum of Understanding for the Ukrainian Anti-Corruption Initiative dated 12 May 2014 by the Government of Ukraine, five local business associations, the EBRD and the OECD (MoU).

The BOI serves as an impartial and alternative mechanism of protecting the rights and interests of business entities and facilitates their dialogue with state authorities. The BOI is an institution independent from any governmental authorities, but is accountable to the parties of the MoU who form a Supervisory Board. The BOI contributes to the construction of a system of public accountability in Ukraine by addressing corruption – both “administrative corruption”, where public officials engage in “rent-seeking activity”; and “state capture”, where powerful commercial actors seek to influence government policy to advance their own vested interests. The BOI does not have the status of a law enforcement agency but operates on the "name and shame" principle.

The Business Ombudsman Council as an independent permanent advisory body to the Cabinet of Ministers of Ukraine became operational in May 2015.

The primary mandate of the BOC includes:

  • responding to and facilitating the resolution of complaints by the foreign and domestic businesses about unfair treatment and corruption; and
  • ascertaining the systemic causes of unfair treatment of business and corruption and sharing its findings with the public and the appropriate public authorities.

The BOC team consists of 32 people: Business Ombudsmen, 2 Deputies, 20 investigators and 8 administrative staff members.

Overall, since the launch of operations, the BOI has received total of 8,945 complaints, closed 5,496 investigations; helped companies to recover UAH 18.8 billion (circa EUR 600 million); and had a significant non-financial impact - ceased malpractice of state officials (733 cases), including ensured the acceptance of tax documents in 203 cases and facilitated the closure of 141 criminal proceedings. The ratio of recommendations implemented by the relevant state bodies receipt is 89% (with initial KPI being just 50%).

Within the past 3 years, the number of complaints remained stable at around 1,700 complaints a year. Since the inception, the BOI has also issued 16 systemic reports, each with a set of recommendations to the state authorities (out of which 33% were implemented). Hence, the workload related review of the businesses complaints remained fairly stable, while the need for follow up and monitoring of the implementation of systematic recommendations increased.

Overall, the establishment and operations of the BOI have served as an effective reform delivery support platform being the first operating anti-corruption institution.

TC Services

Phase 1 of this TC Project's purpose was to establish a functioning BOI and fund it for an initial two-year period.

Phase 2 of the project started in early 2017 and focused mostly on further developing the Institution's capacity and securing its operational stability and the sustainability of the achieved results. The purpose of the project remains unchanged from the initial design.  It is meant to help establish a transparent business environment by protecting entrepreneurs’ rights from state officials’ malpractice and preventing corruption in state bodies, local government authorities, and state-owned enterprises.

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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