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21 January, 2022
Draft Law 5716 allows to legalize the "apartment schemes"
One of the reasons that the militaries retire from the Ukrainian army is insufficient financing and the absence of their own dwelling. The housing waiting list includes 46 thousand persons, and most of them are waiting in vain, as it'll take 600 years for the state to perform its liabilities. 
The deputies have recently registered the draft law allegedly aimed at helping to solve the problem with the dwelling for the militaries. The draft law is called "On Provision of Housing for the Military Servants and Their Family Members." However, despite honourable intentions, this document contains significant corruption risks, in particular, it greenlights the legalization of the "apartment schemes" and creates corruption gaps.                
Tetiana Khutor, 24 TV channel presenter, head of the Institute for Legislative Ideas, draws our attention to this aspect in the program "Expensive Laws". Draft law 5716 provides for establishing a special-purpose fund to purchase dwellings for the military servants. The winning bidders will construct the dwelling and give some part of the apartments to the military. These lucky investors will be determined by a commission of five members. The commission has ample opportunities for manipulations. "The miserable registration fee of UAH 1,700 allows anyone to bid.                 
The bidder can artificially bid up to and then withdraw from an agreement putting only this sum at risk. The withdrawal gives the commission an opportunity to decide, at its own discretion, whether or not to conclude an agreement with other bidders. If the bidding is proved to have been held with serious violations, the auction is not cancelled, and the double registration fee is just paid back to the complainant", explains Tetiana Khutor, presenter of the TV program, head of the Institute for Legislative Ideas.
"Moreover, the developer can transfer to the customer apartments in other construction objects regardless of their location and technical condition. It means that the developer can promise to provide the militaries with the dwelling in the best districts, but in fact, give the apartments in unfinished construction projects on the outskirts". As a reminder, the Independent Anti-Corruption Commission (NAKO) has already analyzed this draft law in detail and revealed a number of corruption risks. Among them, the risks of unfair competition, very broad powers of state authorities, absence of safeguards against financial abuse, unregulated use of funds received from the real estate transactions, etc.                                
NAKO submitted this analysis to the National Agency for Prevention of Corruption (NAPC) triggering the anti-corruption expert investigation. The NAPC's conclusion is in accord with the NAKO opinion, i.e. the draft law does not solve the problems and contains corruption risks. Ihor Kopytin, People's Deputy, one of the draft law's co-authors, reported that to date the dialogue with the NAPC is under way in order to remove these "corruption gaps" from the document.                 
We are glad that the Parliamentary Committee on National Security is open to dialogue.