For employees of the National Agency for Territorial Development of Ukraine
Anti-Corruption Officer of the enterprise
Mykola Dmytrovych Zemlianyi
Phone: +38 (044) 248-15-45, 09:00–18:00
Conflict of interest and how to resolve it
One of the main corruption risks, and one we often encounter in life, is a conflict of interest.
A conflict of interest is a contradiction between a person’s private interest and their official or representative powers.
There are two types of conflict of interest:
- a potential conflict of interest — when a contradiction between a private interest and official duties is possible;
- an actual conflict of interest — when a contradiction between a private interest and official duties has already arisen.
Practice shows that a potential conflict of interest always turns into an actual one.
The core element of a conflict of interest is a private interest, which can be either financial or non-financial.
Please keep in mind that a private interest may affect, or does affect, the objectivity or impartiality of decisions made in the course of official duties.
On 17 February 2023, the National Agency for Territorial Development of Ukraine approved the Procedure for preventing and resolving conflicts of interest, which sets out what an employee should do if a conflict of interest arises.
No later than the day after a conflict of interest arises, the employee must notify the head of the enterprise in writing.
After verifying and confirming the conflict of interest, the head of the Company decides how to resolve it in accordance with the Procedure and the Law “On Prevention of Corruption”.
An example:
A person works at a state non-profit company and, in their free time, heads a charitable organisation — for example, a civic association or a charitable foundation (hereinafter, the NGO).
Today, such an NGO is most likely engaged in providing for and helping certain categories of citizens, which is also part of the Company’s statutory activities.
This already contains a potential conflict of interest that may turn into an actual one.
A potential conflict becomes an actual one when the person starts using the NGO for personal gain in any way or links the Company’s activities with the NGO. This may include third parties (donors) funding the NGO with money intended for the Company’s activities, or misappropriating donor property intended for a state enterprise or a state programme. There can be many such situations, so we encourage you to seek advice in good time.
You can request a written clarification from the NACP (in that case, please inform the director of your main place of work) or contact the Company’s Anti-Corruption Officer.
Please remember that ignorance of the law does not exempt anyone from criminal, administrative, civil or disciplinary liability.
Feel free to ask for advice at any time.
Additional information
- Understand your interests: Be aware of your own interests and make sure they do not overlap with duties or influences that could affect your decisions.
- Recognise potential conflicts: Pay attention to situations where your personal interests may affect your ability to make objective decisions. For example, a financial interest in a particular business may affect your objectivity when assessing risks.
- Stay transparent: Never keep a conflict of interest secret. Always inform your superiors or management about potential conflicts of interest that may affect your work or decisions.
- Follow rules and policies: Familiarise yourself with your organisation’s rules and policies and follow them. These may include restrictions on financial investments, participation in certain transactions or accepting gifts from third parties.
- Ask for help: If you have doubts about a possible conflict of interest or are unsure how to identify or avoid it, do not hesitate to ask for help. Contact your management, the legal department or the Anti-Corruption Officer for advice and guidance.
- Observe professional ethics: Do not use your position or the organisation’s resources for personal gain. Remember your professional duties and your responsibility to the organisation, clients and stakeholders.
- Ensure independent assessment: Avoid situations where your role in one process overlaps with your role in another, as this may create a conflict of interest. For example, if you are responsible for procurement, do not decide on purchases from your personal business partners.
- Be honest and transparent: If you discover a conflict of interest or a situation that may create one, be honest and transparent. Inform the relevant parties and try to find a fair solution that resolves the conflict.
Remember: a conflict of interest can damage your reputation, affect your relationships with others and even lead to legal problems. Always watch your actions and strive to act fairly and objectively.
Who at legal entities of public law must submit declarations
The law on the resumption of asset declarations significantly reduced the number of declarants at state and municipal enterprises, institutions and organisations that are legal entities of public law.
According to the NACP’s clarification, the following officials of legal entities of public law are declarants::
- chairs and members of the supervisory board, board of directors, executive body, or termination commission (reorganisation or liquidation commission);
- the liquidator;
- the head and deputy head;
- the chief accountant;
- the corporate secretary;
- the person exercising the powers of a sole executive body and their deputies;
- members of other governing bodies (except advisory ones).
In other words, only top officials remain declarants at such entities. Everyone else no longer has to submit declarations of any kind (including declarations upon dismissal and annual declarations for 2021, 2022 and 2023), in particular::
- lower-level managers (heads of structural units);
- other employees with organisational, administrative or economic powers;
- heads of procurement units.
However, if an employee is a declarant by virtue of another position or status defined in Article 3 of the Law (for example, a member of a local council), they must submit all declarations required by the Law.
Declarations voluntarily submitted during martial law by persons who have no longer been declarants since 12 October 2023 are kept in the Register of Declarations for five years.
However, the last declaration submitted by such a person will be kept indefinitely. Current legislation does not provide for deleting such declarations before the five-year period expires.
Source: official website of the NACP (opens in a new tab)
Contacts for reporting violations of anti-corruption legislation
Email: [email protected]
Phone: +38 (044) 248-15-45 (08:00–17:00)
Reception days: every Tuesday, Wednesday and Friday (10:00–13:00)
The information provided will be reviewed and verified in accordance with current legislation; based on the results, you will receive a response and the necessary measures will be taken.