“State loses billions due to ARMA’s problems with asset management – Head of the Anti-Corruption CommitteeThe Accounting Chamber found serious problems in the management of seized assets of the ARMA. During the war, the state could have
lost at least UAH 850 million due to inefficient property management.”, — write: unn.ua
The Anti-Corruption Committee of the Verkhovna Rada heard the report of the Accounting Chamber on the results of the audit at the Asset Recovery and Management Agency.
According to the Accounting Chamber, the state could have lost at least UAH 850 million in management income during the entire period of full-scale war. Given that most of the assets transferred to ARMA have not been transferred to managers, this amount may be higher,
She added that, according to the Accounting Chamber, 80% of decisions on the transfer of assets to the ARMA remain unfulfilled, meaning that these assets are not managed, and the seized assets themselves may “be depreciated, stolen or continue to de facto work for the owners or third parties.
Radina also emphasized that a third of asset transfer agreements are concluded under a special procedure rather than through competitive procedures.
In 2024, such income came mainly from guarantee payments from managers and income from cash management. In other words, asset management itself is practically not profitable. The asset management model, in which the business receives reimbursement of expenses and payment for services from the profit from the operation of the asset, and receives nothing if the arrest is lifted before such profit is received, is not very attractive for business,
In addition, Radina added, ARMA is in no hurry to launch a search for a manager for the assets, which also does not contribute to the flow of funds to the state budget.
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The Accounting Chamber conducted an audit of ARMA for 2022-2023 and the first half of 2024, which revealed significant problems in the management of seized assets. In particular, the auditors emphasized the following problems: imperfect mechanisms for selecting managers and appraisers of confiscated assets; incomplete data on assets in the register; unregulated relations between ARMA and prosecutors and pre-trial investigation bodies.
However, ARMA Head Olena Duma called the audit “an unprecedented step in ensuring maximum transparency.” She emphasized the agency’s record revenue growth, the introduction of new management mechanisms, and improved performance in 2024. At the same time, the head of the agency avoided commenting on the problems identified during the audit.
Based on the results of the audit, Transparency International Ukraine pointed out the need to reform the ARMA. Anti-corruption experts pointed out that the agency’s activities currently raise serious concerns, including from international partners.
Earlier, Transparency International Ukraine criticized the ARMA for not meeting European standards. Anti-corruption experts pointed out that quite often there is “contradictory communication from the agency or its officials, combined with populism, violation of the presumption of innocence and lack of understanding of the competence of state bodies.