Matviy Holoshina, Deputy Director of Internal Audit and Financial Control of the Ministry of Defense, has hosted in Odessa the Second Regional Seminar on internal audits, prevention and detection of corruption in the defense sector, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The Ministry of Defense held the seminar for financial monitoring in accordance with the plan of cooperation between Ukraine and NATO, with support of the UK Ministry of Defense, as well as under the Government Program to prevent and combat corruption in the Ministry of Defense and the Armed Forces of Ukraine (AFU).

Experts point out that the purpose of the event is to introduce international experience of NATO's restructuring practice for transparency and trust in the defense sector, as well as on anti-corruption and improvement of the efficiency of financial monitoring by the Ministry of Defense. It should become the main form of prevention of all forms of financial violations of financial discipline and misuse of funds and a reliable barrier against attempts to rake in profits at the expense of the military.

In line with the government program, the AFU this year has introduced preliminary monitoring of venture operations. In practice, this means that all draft contracts for purchase or disposal of the property, capital construction or registers of payments are subject to mandatory preliminary assessment in terms of risks or illegal expenditures by internal auditors.

Analysts point out that the Ministry of Defense employs over 10% of all auditors in the country, and that they have found nearly a third of all financial violations in Ukraine. Due to the military auditors and new mechanisms of financial monitoring, 54% of all damages have been recovered. From January to August 2013, audit and other checked operations covered 12 billion UAH of the Ministry of Defense’s funds, identifying losses and damages totaling 158.1 million UAH, 33.6 million of which have been recovered. More than 300 persons have been held accountable for financial violations. Of these, 12 heads of departments and commanders of military units have been removed from their positions.


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