Audit Chamber Finds Asset Recovery Agency Failing to Manage All Seized Property

Management of Seized Assets Under Scrutiny

According to ХВИЛЯ: Ukraine's Asset Recovery and Management Agency (ARMA) has failed to take control of all seized assets, according to a recent monitoring report by the Accounting Chamber. This agency is a key body in the fight against corruption, responsible for securing assets obtained through illicit means. The audit, which reviewed the implementation of recommendations following a budget spending review, found that of 16 specific recommendations provided, only seven have been fully implemented, while nine remain in progress. Furthermore, the Cabinet of Ministers has failed to act on four recommendations, highlighting systemic issues in managing confiscated property.

The Accounting Chamber's monitoring revealed that while ARMA has completed a full inventory of court rulings ordering the transfer of assets, progress on implementing the audit's advice remains insufficient. The key outstanding recommendations include:

• Ensuring the full acceptance and management of all assets as mandated by court decisions;
• Streamlining coordination with prosecutor's offices and pre-trial investigation bodies;
• Improving oversight of management effectiveness and establishing transparent criteria for preserving asset value;
• Automating record-keeping by upgrading the Seized Assets Register and implementing a management system;
• Gaining access to the Unified Register of Pre-trial Investigations.

Pathways for Improving Asset Management

In a prior effort to address these issues, Ukraine adopted Law No. 4503-IX last year to implement the Accounting Chamber's recommendations and initiate a reboot of the Agency. The monitoring of the situation is ongoing, with future improvements expected from both ARMA and the Cabinet of Ministers in fulfilling the recommendations.

The identified shortcomings in managing seized assets point to a pressing need for further reforms within ARMA. Incomplete implementation of the recommendations risks undermining the effectiveness of mechanisms designed to return assets to state ownership. Successful execution of the Accounting Chamber's advice is critical for enhancing financial transparency and rebuilding public trust in state institutions, a vital component for Ukraine's European integration aspirations.