Transparency of public assets (UA0088)

According to the data received by the State Property Fund from all management entities (over 150 entities), over one million stateowned assets are registered in Ukraine, as of 2020. At the same time, the approach to accounting for such assets, maintaining the Unified Register of State-Owned Assets (the “Register”), and accessing relevant data requires substantial improvement. For that purpose, it is proposed to create a centralised information resource (portal) based on an IT platform and intended for improving state-owned asset management practices through digitalisation and process simplification. The Register collates information on all state-owned assets (buildings, structures, equipment, etc.) owned by state administration bodies and legal entities (state asset holders) exercising economic jurisdiction and operational management of state-owned assets. This Register will make it possible to: maintain state asset accounting, taking into consideration geospatial data (geolocation); effectively manage the assets and transparency of selling state-owned assets; mainstream entering up-to-date, complete, and reliable data on state assets into the Register; establish the basis for taking effective managerial decisions on the use of state-owned assets; provide administrative services for releasing information (data or extracts) from the Register in an electronic format, based on Register data; access to public information on state assets by publishing information on state-owned assets from the Register, in the form of open data, on the Unified State Open Data Web Portal. 8

Steps Responsible persons Time-frame Partners Performance indicator 1. Making amendments to legal and normative acts State Property Fund January– November 2021 NGO Transparency International Ukraine (by agreement) civil society institutions (by agreement) amendments have been made to the Law of Ukraine “On Management of StateOwned Assets”, and to the Cabinet of Ministers of Ukraine Resolutions No. 1121 of 30 November 2005 and No. 467 of 14 April 2004, and to the orders of the State Property Fund 2. Creating the Terms of Reference for upgrading the information and telecommunication system State Property Fund February–May 2021 NGO Transparency International Ukraine (by agreement) civil society institutions (by agreement) Terms of Reference for upgrading the information and telecommunication system have been created 3. Developing and upgrading the information and telecommunication system and its components; implementing the electronic information interaction with stateowned electronic resources; and joining the electronic interaction system of information State Property Fund Ministry of Justice Ministry of Digital Transformation May–November 2021 —“— software and operational documentation have been developed; software has been installed on the State Property Fund’s hardware, and data migration to the database has been accomplished; preliminary testing of software and its pilot 9 Steps Responsible persons Time -frame Partners Performance indicator resources and the integrated system of electronic identification operation have been carried out; requirements to the hardware complex enabling functioning of the information and telecommunication system have been set; and the said hardware complex to enable the above system’s functioning has been installed and adjusted; software exit codes have been provided; electronic information interaction with the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Organizations, and with the State Register of Proprietary Rights to Immovable Property has been established; Connection to the system of electronic interaction of information resources and the integrated system of electronic identification has been made; and the application programming interface for publishing data sets on the 10 Steps Responsible persons Time-frame Partners Performance indicator Unified Open Data WebPortal has been developed 4. Conducting pilot operation of the information and telecommunication system and its components; developing and introducing the information exchange program interface services; and, integrating into the Unified State Web Portal of Electronic Services State Property Fund Ministry of Digital Transformation December 2021– March 2022 NGO Transparency International Ukraine (by agreement) civil society institutions (by agreement) software and documentation thereto have been completed; pilot operation and acceptance testing have been carried out; program interface of information exchange services such as Ordering Services on the Web-Portal, Request Registration and Processing, Monitoring of the Status of the Administrative Services Provided has been designed and introduced; integration into the Unified State Web Portal of Electronic Services has been completed; exit codes of the improved software have been provided 5. Introducing the improved information and telecommunication system and its components, and technical support; developing a comprehensive system of information security State Property Fund Ministry of Digital Transformation Administration of the SSSCIP April–December 2022 NGO Transparency International Ukraine (by agreement) civil society institutions (by agreement) information and telecommunication system software and documentation have been completed; training of State Property Fund staff has been carried out; a comprehensive system 11 Steps Responsible persons Time-frame Partners Performance indicator of information security has been built

Action Plan Review

Commitment 2: Ensuring transparency in public asset accounting

Results Report

Commitment 2. Ensuring transparency in public asset accounting

In 2020, over one million state-owned assets were registered in Ukraine, but state property data were incomplete or not reliable. This commitment aimed to create an integrated, online digitized register for the Unified Register of State-Owned Assets to incorporate all state-owned property data in one platform. The register would provide relevant data on state-owned assets on the Unified Open Data Portal and include property geolocations. [12]

The parliament passed draft amendments to the Law on State Property Fund in the first reading and other legal acts on the privatization of national and municipal properties in July 2021. [13] The draft law provides interconnection between the data held by the Unified State Register of Legal Entities, Private Entrepreneurs, and Civic Associations and the State Register of Real Property Rights, in order to form the reference of the Unified Register of State-Owned Assets. Amendments to the Administrative Code and the Criminal Procedure Code were adopted in the first reading after the implementation period in May 2023. [14] Once they passed second reading in the parliament, these amendments will provide sanctions for late or incorrect state-owned property information sent to the Unified Register of State-Owned Assets.

Under a project funded by the Embassy of the United Kingdom in Ukraine, Transparency International Ukraine analyzed existing data on the Unified Register of State-Owned Assets in July 2021 and presented its recommendations for a new system to the State Property Fund of Ukraine (SPFU). [15] Due to Russia’s invasion of Ukraine, work on the system was suspended in 2022. Change in SPFU leadership brought new approaches towards the steps of implementing the register, while Transparency International Ukraine dropped out of implementation.

At the time of writing this report, the SPFU was developing terms of reference for the register alongside the Ministry of Digital Transformation. [16] The register will collect state assets data and assist the government in decisions to privatize or sell state assets. State asset information will also be open to the public with the exclusion of sensitive data related to strategic objects. The SPFU is discussing how to exchange data with state electronic resources, particularly ProzorroSale as well integration with the Digital Restoration Ecosystem for Accountable Management (DREAM) platform to keep records of war damaged state properties.