A significant step has been made toward building pubic trust in Ukraine’s energy markets. The state company Market Operator (MO) has gone through a process of reform supported by USAID to implement International Financial Reporting Standards (IFRS) and fight corruption. As a result of these efforts the MO earned internationally recognized certification for their anti-corruption management system.
In October 2020, USAID’s Energy Security Project (ESP), engaged a country representative of the Professional Evaluation and Certification Board (PECB) to assess the compliance of the MO’s Anti-Corruption Management System (ACMS) with the requirements of the International Organization for Standardization’s ISO 37001.
The Anti-Corruption Management System (ACMS) described in ISO 37001 is considered the international standard in combating corruption and is designed to help detect and prevent bribery and promote an anti-corruption culture. Requirements of the certification include the adoption of an anti-bribery policy and developing internal resources to monitor compliance with established financial and commercial controls. Compliance with the ISO 37001 standard requires applying practical measures to reduce the risk of corruption. In addition, compliance with anti-corruption codes of conduct by all MOemployees helps reduce the risk of bribery and participation in corrupt practices.
An initial audit concluded that the Market Operator’s Anti-Corruption Management System (ACMS) partially complied with approved policy and objectives. The MO took all necessary measures to addres deficiencies and inconsistencies identified during the audit, and achieved the certification of ACMS according to the ISO 37001:2016 standard.
To help the Market Operator establish a reliable and transparent accounting system, USAID supported the MO’s transition to International Financial Reporting Standards (IFRS). USAID provided the required software and developed the new accounting policy.
The Cabinet of Ministers of Ukraine approved the new accounting policy of the Market Operator based on IFRS. The system is based in transparency and will help build trust with market participants and the public in general.