Economic Crimes Rating From Internal Affairs Ministry
In 2002, units of the State Department for Fighting Economic Crimes (SDFEC) with the Internal Affairs Ministry of Ukraine solved 43,300 crimes (of these, 32,000 were serious offenses) committed in the national economy sectors. The amount thus recovered totaled UAH 673.4 million (a UAH 300 million increase from 2001), SDFEC Chief Viktor Lytvynenko told a January 17 press conference. And although the real number of crimes is unknown, Viktor Lytvynenko and his first deputy Leonid Skalozub came up with a quite interesting rating of the most crime-ridden sectors of the economy.
By all accounts, the public sector is the undisputed leader in this respect, with roughly 10,000 crimes recorded last year by SDFEC officers (a two-fold increase from 2001). Some 60% of crimes (5,982) involving state functionaries have been solved, with bribe taking accounting for one in five such cases. According to official estimates, a total of UAH 586.2 million was embezzled last year, of which UAH 457.3 million was allegedly recovered. According to statistics, agrarian enterprises are the most crime-ridden in the national economy (some 8,000 crimes were recorded with the resulting losses of UAH 203.2 million). Some 1,600 crimes involved misappropriation of budget funds. Cases of illegal expropriation of lands from farmers not versed in legal matters by unscrupulous managers of agrarian enterprises (formerly collective farms) account for 40% of all offenses.
Agrarian enterprises are followed by companies of the fuel and energy sector with 5,600 recorded crimes. When it comes to embezzlement of budget funds, oil and gas companies are in the lead with 1,800 crimes with the resulting losses of UAH 50 million.
Third place goes to Luhanskvuhillia, Pavlohradvuhillia, and Lvivvuhillia coal-mining holdings. A total of 1,300 acquisitive crimes were recorded last year at enterprises of the coal-mining industry. Most of them involved unauthorized shipments of coal and misuse of funds intended for payroll purposes. “It is so difficult for the government to find money for the coal-mining industry,” complained Mr. Lytvynenko, while 507 individuals, 123 of them managers at various levels, were to blame for losses estimated at UAH 25 million.
In terms of concentration of crimes per business entity, a commanding lead is taken by the banking sector with 887 recorded crimes. A total of 367 bank employees, including 54 managers, have been brought to account, with a total of 14 cases of bribe taking, 112 cases of appropriation or embezzlement of state or collective property, and 38 cases of machinations with funds recorded. According to sources in authoritative bodies, when Article 209 of the Criminal Code (criminal responsibility for money-laundering) takes effect the number of solved cases in the banking sector will increase.
Of the 1,200 crimes recorded in education, every fourth involved bribe taking. Mr. Lytvynenko expressed great concern over the situation on scrap metal and alcoholic beverages markets. To illustrate, 6.9 thousand decaliters of counterfeit alcoholic beverages have been seized. The situation with the privatization of state property does not look any better. In 2002, some 4,400 privatization- related crimes were solved, including 347 cases of illegal alienation of property at major and strategic enterprises.
On the whole, last year alone a total of 308 crimes resulted in losses in excess of UAH 1 million each. 2,200 more economic crimes caused losses in excess of UAH 100,000 each. Mr. Lytvynenko reiterated that his department has redirected its efforts toward solving high-profile crimes. He also suggested that middle-echelon businessmen call the Ministry, should they find SDFEC officers’ claims dubious. He also said that his department has submitted to the General Prosecutor’s Office information about a number of ranking officials at the Finance Ministry, Ministry for the Economy, the State Treasury, and the Agency for Bankruptcies. Answering The Day’s question, Mr. Lytvynenko stressed that some 20% of the 42,300 above cases have been shelved. It is anyone’s guess how many more were never initiated.
