5 Steps to Better Compliance: Anti-Corruption Program, Part I

In my last post I promised to expand on the measures to be implemented in order to comply with the anti-corruption laws. And the first measure I want to tell you about is the implementation of the anti-corruption program (the “Program”). 

I must warn you right away that not every company is required to adopt the Program. Indeed, it would be quite burdensome for small companies which have never heard the word “compliance” to do so. Instead the law requires that the Program should be adopted by the companies participating in public procurement. In fact, this requirement applies only in case the goods/services valued over UAH 1 million or works valued over UAH 5 million are procured. 

If the company failed proving that it has a Program in place, its tender proposal will be refused. This requirement raises logical question: how the company should prove that the Program was adopted? The law remains silent. 

When discussing this issue with a business community, some were speculating whether it would be sufficient to provide a written confirmation indicating that the company has implemented the anti-corruption program. Obviously, behind this idea was the unwillingness to bother with the Program. The plan was to prepare 1-page document in order to formally fulfill the requirement (bearing in mind that no one should ever see it) and to close the issue.  

However, such companies will be disappointed - recent clarification from the government instructs procuring entities to request a copy of the Program. Interestingly, most probably that procuring entities will not check whether the Program complies with the legislative requirements as they don't have such powers and required expertise. However, the one should bear in mind that the document may be further assessed by the National Corruption Prevention Authority (NCPA). And if the company failed to fulfill all requirements, this may potentially lead to questioning tender results. 

So the companies participating in public procurement have quite a good reason to have an appropriate Program. In the second part 2 of this post I will share my thoughts on how the appropriate Program might look like.

Please follow the link to read this post in Ukrainian.


Igor is an associate at the global law firm. His practice focuses on anti-corruption compliance, life sciences and public procurement areas. Igor assists major international and local companies with development and implementation of anti-corruption policies and advises on various compliance matters.

He also chairs Anti-Corruption Working Group at the American Chamber of Commerce in Ukraine. As part of his activities there Igor participates in the development of Ukrainian anti-corruption legislation and assessment of its impact on all types of businesses.