Parliament update: December 14-19

IntelNews

KIEV - During the week of December 14-19, claims and counterclaims of abuses and mismanagement were hurled on the floor of Ukraine's Parliament. Prime Minister Leonid Kuchma was put on the firing line on "Government Day" for the ineptness of his government, while National Bank of Ukraine Chairman Vadym Hetman decided to resign despite calls for him to remain in his post.

• December 14 - The final round of Parliamentary sittings for 1992 began according to schedule, despite a rumor about a possible extraordinary session that began when the government received special powers in the area of economic legislation.
  
  During the last Parliamentary recess, by-elections added 12 more deputies to Parliament. Eight more vacancies have yet to be filled. Voter turn-out is low in large cities and is attributed to a growing apathy among the people toward the powers that be.
  
  Discussion continued about legislation covering criminal activity. Vague laws on economic activity have led to a large number of economic crimes, said Oleksandr Yakymenko, the head of the Ukrainian Supreme Court. Discussions on the battle against crime lasted until the end of the day's session.
  
  According to existing laws, bribe-taking is a punishable offense. However, middle and petty officials continue to accept bribes to withhold settlement documents, issue false results or prepare one-sided agreements, etc. - all this without the slightest fear of retribution. The present Ukrainian Criminal Code, for example, contains no definition of the terms "mafia," "corruption" or "speculation," nor does it list the punishments for these violations.
  
  Since Ukraine's departure from the ruble zone, the legal mechanism of punishment for violating hard currency operations is unclear, as the term "foreign currency" has not been redefined. Further, practically all local administrations have ignored presidential orders to provide premises for courts, leading to delays in case hearings.
  
  The work of a judge is very dangerous, demonstrated by statistics of attacks and assassination attempts. Pressure from local power structures, on whom they depend financially and politically, make a judge's work increasingly difficult; they are leaving their posts in growing numbers.
  
  
• December 15 - At the start of the morning session, Parliament sent a resolution on the execution of crime-fighting statutes to committee for reworking since sections on law infringement were missing. It was decided to form commissions to check on the work of certain state structures.
  
  After this, Parliament examined and adopted changes to the Criminal and Administrative Procedural Codes, which mainly involved minor changes to former Soviet terminology. However, an amendment that would have given criminal investigators access to bank and commercial secrets, without the sanction of the state prosecutor's office, was rejected.
  
  A law on social assistance for youth was passed together with a declaration on the general principles of youth policies in Ukraine.
  
  The law "On the Status of Judges," which sets clear social and legal guarantees for judges, was passed in its second reading. However, the law cannot change anything in the judicial system until complex reforms are undertaken to make the judicial system independent of state power.
  
  Parliament examined legislation "On the Status and Social Guarantees of Veterans of War, Work and the Military Forces." The most passionate debates erupted over granting the status and privileges of World War II veterans to members of underground military units of the Organization of Ukrainian Nationalists and the Ukrainian Insurgent Army. Many deputies argued for the removal of such privileges from those who participated in repressions by the Communist regime, especially during Stalinist times. A majority decided to return to this issue when the results of a Parliamentary commission to provide a historic-legal assessment of the activities of these organs are in.
  
  
• December 16 - The morning session continued with discussion of legislation on the status of veterans of war and work. It was passed in the first reading and sent to commission for reworking.
  
  A law "On Ukrainian Parliamentary Standing Commissions" was passed in the first reading. The law regulates the legality of commission activities. Apart from drafting laws, commissions must also ensure that existing legislation is being applied, make preliminary conclusions on the ratifications of international agreements, draft social and economic state programs, prepare the state budget and consult on other issues within the competency of Parliament. In addition, commissions must hold preliminary discussions on the suitability of candidates elected by Parliament to official posts and assess their work. Commissions must initiate the subject matter of referendums and plebiscites.
  
  Many deputies said a shortcoming of the legislation was the repetition of certain statutes, already contained in existing laws. The draft law was sent to commission for revision.
  
  After this, resolutions were passed on setting up the Sevastopil City Court and the Arbitration Court, and on the election and dismissal of members of provincial courts and military tribunals.
  
  The planned closed session was moved to the next day.
  
  
• December 17 - In the morning, passions raged over the resignation of National Bank of Ukraine (NBU) Chairman Vadym Hetman. The deputies were split into two equal groups: one agreed with Parliamentary Chairman Ivan Pliushch that Mr. Hetman's resignation - due to ill health - be examined on its own. The second group demanded to hear a report on Mr. Hetman's activities before accepting his resignation. Mr. Pliushch suggested the two sides retire to the lobbies to decide how to examine the question.
  
  Having reached an agreement, Parliament began examining legislation "On Television and Radio in Ukraine." A speech was delivered by Mykola Okhmakevych, long-time president of the State Teleradio Company (STC), who had been appointed to the position under General Secretary Volodymyr Shcherbytsky. The deputies concluded that the legislation had been written to favor Mr. Okhmakevych's monopoly of the post, but since an alternative draft existed, the two would be welded into one. Thus the bill was sent to commission.
  
  After this the law "On the Presidential Representative in the Crimean Republic" was passed in the second reading.
  
  Amendments were made to the laws "On the Presidential Representative in Ukraine" and "On Local Councils of People's Deputies, and Local and Regional Self-Government." The amendments somewhat curtail the rights of presidential representatives and institute a mechanism for accountability to local councils. In a case where two-thirds of Parliament vote to remove a presidential representative, the President must take heed.
  
  The evening session returned to the question of Mr. Hetman's resignation. Some deputies supported Deputy Volodymyr Pylypchuk's proposition that personnel changes in the NBU only be examined after the bank chairman's report. A compromise was reached, proposed by Deputies Mykola Riabchenko and Vitaliy Karpenko, which allowed Mr. Hetman to take the floor.
  
  In his 40-minute speech, Mr. Hetman explained the reasons behind his resignation decision. At the time he had indeed been very ill. However, the main reason for his decision was that he had failed to find a common language with the Kuchma government on monetary reforms.
  
  Mr. Hetman named the Russian Central Bank as the principal culprit behind the NBU crisis. The Russian partners allowed the bank settlement system to be changed four times, without prior notice. Every day that the NBU stood idle, 40,000 operations were not conducted. He agreed that because of credit emissions Russia and other CIS neighbors had been flooded with worthless cash from Ukraine. Mr. Hetman reminded those in Parliament that in the summer of 1992 he had said monetary emissions make sense only if the money is used to reconstruct industry. But this has not occurred even now.
  
  He emphatically denied charges the NBU had tried to slow the pace of monetary reform. The first Ukrainian banknotes had already been printed, the issue of coins had been organized, a modern settlement center, treasury and cash storage facility had been set up, provincial banks had been modified. However, it was risky and detrimental to introduce a national currency now, given the current unstable economic climate, Mr. Hetman said. Western experts who had been in Ukraine at the time agreed.
  
  For the effective introduction of a new monetary unit currency and price regulation, demarcation of powers between bank and government, etc., are necessary. None of this exists in Ukraine today, and there are two emission centers - the Ministry of Finance and the NBU. Several days earlier, the Ministry of Finance conducted another emission, removing from the NBU 400 billion coupons, the shortfall in collected taxes. Mr. Hetman said when two people control the steering-wheel of a vehicle, it goes nowhere.
  
  Most of the deputies were impressed by Mr. Hetman's speech and requested that he seriously think about withdrawing his resignation.
  
  
• December 18 - The morning session continued discussion of the NBU issue, however, Mr. Hetman reaffirmed his intention to resign. The deputies voted to satisfy the NBU chairman's request.
  
  "Government Day" followed, officially opened by First Deputy Prime Minister Ihor Yukhnovsky. Mr. Yukhnovsky said the main task before the government today was to re-orient the economy, which is totally ineffective. Producers in all fields must become export-oriented. Mr. Yukhnovsky said the nation faces an energy crisis.
  
  Finance Minister Hryhoriy Pyatachenko spoke on the formation of the state budget. Considering that Ukraine is operating in a changed environment, he said the budget has to be recalculated. The Ministry of Finance was given until late January to do this. Meanwhile, a resolution was passed covering the most important budgetary expenses until March 1, 1993. The hard currency part of the budget had also been located - in 1992 it consisted of U.S. $115 million, of which $75 million has already been spent. Next year, the treasury anticipates receiving $5 billion. The "achievements" of the previous government in padding its own pockets at state expense was brought to light by Deputy Prime Minister Yuliy Ioffe. He stated that 301 loopholes had been discovered that allow fund misappropriation without violation of the law. The greatest violation was committed by Interenergo, which has mortgaged the NBU building while owing the bank a sum three times that of the mortgage. However, the NBU board did not even try to recall the money.
  
  Many companies are opening accounts abroad to conceal earnings. In the fuel sector alone, "commercial structures" have increased exports to 8 million tons (in the former Ukrainian SSR, with imports of 1 million tons, 6 million tons were being exported). However, it is virtually impossible to bring these people to justice because of lax market laws passed by Parliament.
  
  Deputy Prime Minister Viktor Pynzenyk presented information on government decrees. Minister Ivan Herts spoke about the activities of the Ministry of Foreign Economic Relations and Trade. Agriculture and Supply Minister Yuriy Karasyk spoke on problems within the agro-industrial complex.
  
  Political groups with fascist and terrorist tendencies were the topic of Ukrainian Security Service chief Yevhen Marchuk. He said 20 such organizations exist in Ukraine, both radical-nationalistic and Russian-oriented. The largest group is the Ukrainian National Self-Defense (UNSO), which belongs structurally to the Ukrainian National Assembly (UNA) and whose membership numbers almost 1,000. Several dozen members of this organization have already been arrested for criminal acts. The other groups are not large and have not displayed criminal behavior. All of these groups are under surveillance by the USS.
  
  
• December 19 - "Government Day" continued into the morning session. Energy Minister Vitaliy Skliarov said he disagreed with the revelations of Mr. Ioffe's commission in the area of departments not fulfilling state orders. As for the shortcomings mentioned, he promised to correct them since he is well acquainted with the production process, having presided over it for 12 years. Afterwards, he intends to resign.
  
  Mr. Kuchma had the final word. He said that all week certain forces in Parliament were trying to stir up a critical situation in the government, but fortunately everything had turned out well. He reminded those hoping for a crisis in government that it could provoke a social explosion which would destroy the country.
  
  Parliament then adopted amendments to statutes 106, 114, 115 and 120 of the Ukrainian Constitution and supplemented them with statute 97-1. These amendments are tied to the legislative establishment of a mechanism of transferring some of Parliament's authority to the Cabinet of Ministers in extenuating circumstances.
  
  Parliament ratified an agreement between CIS countries "On the Order of Solving Disagreements Related to Economic Activity." This agreement was signed during a meeting of the heads of CIS states in Kiev, in March 1992.
  
  Parliament examined and adopted a law on strengthening border military forces associated with the development of national borders with Russia and Belarus. Also adopted was Statute 5 of the law on lawyers, which defines a lawyer's professional rights.
  
  During the day session, deputies formed ad hoc committees to review and investigate bank matters, the State Property Fund, details of law falsification, activities of deputies who demanded quotas and licenses for the export of materials in short supply, and the fight against corruption and the mafia.
  
  Toward the end of the session Parliament examined a draft resolution on the course of legislation to fight organized crime, however, no vote was taken because of the absence of a quorum. The sixth session finished after the Mandate Commission was asked to learn why deputies had abandoned the chambers, thus undermining the vote.

Copyright © The Ukrainian Weekly, January 3, 1993, No. 1, Vol. LXI

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