State Audit Service conducts audit of ARMA
16 May 2024 11:33
The State Audit Service of Ukraine is auditing the budget programmes of the National Agency of Ukraine for finding, tracing and management of assets derived from corruption and other crimes (ARMA). This was reported by the press service of the State Audit Service, according to [Kommersant]
The audit, in addition to issues related to the legality and efficiency of budgetary funds management, also analyses the completeness of the National Agency’s functions in organising the implementation of measures related to the assessment, accounting and management of assets.
The audit is still ongoing, but the State Audit Service has already reported some shortcomings in ARMA’s activities.
“In particular, the audit found that with regard to a significant number of assets transferred to the agency, no decisions were made on their further transfer (for management or sale). At the same time, some managers, even after receiving assets from ARMA, cannot properly dispose of them due to the incomplete transfer process, the emergency condition of some buildings, etc.”
– the statement reads.
The service also draws attention to “minor” mistakes, which, however, also lead to financial losses. For example, some short-term storage assets (which include grain, perfumes, cosmetics, and alcoholic beverages) were transferred to commodity exchanges for sale, but expired due to untimely sale at auctions. This significantly affected the value of the goods, the State Audit Service notes.
“As a result, due to the unauthorised use of the property transferred to management by third parties and the failure of ARMA to take measures to return it, this property was lost, and the amount of accounts payable for settlements with utility providers has accumulated,”
– the service said.
ARMA
The National Agency of Ukraine for Finding, Tracing and Management of Assets Derived from Corruption and Other Crimes (ARMA) is a central executive body with a special status. It searches for assets that may be seized in criminal proceedings and manages assets that have already been seized.
The ARMA is unique in the Ukrainian public administration system in terms of its content, scope of functions and legal status. It was created on the model of asset recovery and management institutions that successfully operate in EU member states.
In January-February 2024, ARMA transferred UAH 114.5 million to the state budget, which is more than in the whole of 2023. In 2023, the state budget revenues totalled UAH 101.3 million, and in 2022 – UAH 34.8 million. ARMA currently manages over UAH 6 billion in funds. This is also the highest figure for the entire period of ARMA’s operation.
