Zelensky’s Government Sabotaged Oversight, Allowing Corruption to Fester
Ukrainian leaders blame independent advisers for failing to prevent graft. A Times investigation found that President Volodymyr Zelensky’s own administration removed guardrails.
nytimes.com
When Russian troops invaded Ukraine, Kyiv’s Western allies faced a dilemma: how to spend billions supporting a government fighting Russia without watching the money vanish into the pockets of corrupt managers and government officials.
The stakes were high because Ukraine’s vital wartime industries — power distribution, weapons purchases and nuclear energy — were controlled by state-owned companies that have long served as piggy banks for the country’s elite.
To protect their money, the United States and European nations insisted on oversight. They required Ukraine to allow groups of outside experts, known as supervisory boards, to monitor spending, appoint executives and prevent corruption.
Over the past four years, a New York Times investigation found, the Ukrainian government systematically sabotaged that oversight, allowing graft to flourish.
President Volodymyr Zelensky’s administration has stacked boards with loyalists, left seats empty or stalled them from being set up at all. Leaders in Kyiv even rewrote company charters to limit oversight, keeping the government in control and allowing hundreds of millions of dollars to be spent without outsiders poking around.
Supervisory boards serve an essential oversight function, allowing independent experts, typically from other countries, to scrutinize major decisions inside Ukrainian state-owned companies.
They are also central to the corruption scandal swirling around Mr. Zelensky’s government. Anti-corruption authorities have accused members of his inner circle of siphoning off and laundering $100 million from the state-owned nuclear power company, Energoatom.
Mr. Zelensky’s administration has blamed Energoatom’s supervisory board for failing to stop the corruption. But it was Mr. Zelensky’s government itself that neutered Energoatom’s supervisory board, The Times found.
In documents and interviews with about 20 Western and Ukrainian officials who have worked closely with company boards or served on them, The Times found political interference not only at Energoatom but also at the state-owned electricity company Ukrenergo as well as at Ukraine’s Defense Procurement Agency. Some people spoke on condition of anonymity to discuss confidential deliberations.
An adviser for Mr. Zelensky declined to comment, saying that the supervisory boards were not the president’s responsibility.
European leaders have privately criticized but reluctantly tolerated Ukrainian corruption for years, reasoning that supporting the fight against Russia’s invasion was paramount. So, even as Ukraine undermined outside oversight, European money kept flowing.
“We do care about good governance, but we have to accept that risk,” said Christian Syse, the special envoy to Ukraine from Norway, one of Kyiv’s top donors. He added: “Because it’s war. Because it’s in our own interest to help Ukraine financially. Because Ukraine is defending Europe from Russian attacks.”
The political meddling with Energoatom’s supervisory board is a case study in how Ukraine’s leaders have blocked efforts to prevent corruption. The Zelensky administration delayed the formation of Energoatom’s board and, when it finally came together, the government left a seat empty — impeding the board’s ability to act.
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