NABU recognized the persistence of embezzlement at Ukrzaliznytsia

Corruption at a state-owned enterprise

Institute for Economic Leadership

In the proceedings of the National Anti-Corruption Bureau there are about 80 cases related to violations in “Ukrzaliznytsia”. Their losses amount to over UAH 700 million. This was stated by NABU director Semyon Krivonos.
 
He noted that the bureau has a whole unit that has been investigating cases related to Ukrzaliznytsia since 2015. Among the constant violations are the appropriation of funds for public procurement and the creation of back offices that receive “kickbacks”.
 
According to the director of NABU, the bureau has given recommendations to the government, as the situation indicates the need for systemic changes at Ukrzaliznytsia to eliminate the very cause of corruption. However, these recommendations have not yet been implemented.
 
An effective way to overcome corruption in the UZ is its separation and at least partial privatization, which was promised by the former government. The experience of European countries shows that even partial privatization of the railway leads to its modernization, accessibility and the growth of the quality of the services provided.

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