COMPLIANCE OFFICE IN ACCORDANCE WITH THE OECD PRINCIPLES IN UKRENERGO
The following statement was announced by Vsevolod Kovalchuk, CEO at Ukrenergo, during his meeting held on January 30, 2018, with the representatives of the International financial institutions and independent public organizations dealing with transparency and anti-corruption activities.
“Implementing the corporate governance reform in Ukrenergo, we strive to widespread the world`s best known OECD principles within the Ukrenergo activities. The OECD principles serve as a great standard of the effective, transparent and responsible functioning of the companies involving the state bodies. Hence, we are to create the compliance office which is to control the observance of the internal policies and procedures been developed in accordance with the legislation of Ukraine and bases on the international best practices, primarily, the OECD principles”.
The corporate vision of compliance in Ukraine is on the initial stage in Ukraine whereas the compliance-control aspects have already been deeply rooted in all business and economic activities worldwide.
Compliance is a tool, a mechanism aimed at minimization of risks to involve the company in the processes which may result not only in the financial losses but in the public loss in confidence represented by the regulatory bodies, investors, partners, shareholders, clients, etc.
“In the nearest future we will announce the open competition to select the authorized person responsible for adherence to the internal documents (Compliance Officer). We are to use the best international experience, to develop new compliance policies of Ukrenergo in accordance with the OECD standards and the legislation of Ukraine”, added Vsevolod Kovalchuk.
Participants of the meeting supported the initiative and discussed the main aspects of the selection procedure, the scope of responsibilities of the Compliance Officer and the development of the relevant policies.
Functions of the Compliance Officer are actually the same as of the Authorized person responsible for the implementation of the anti-corruption program. However the former one possesses more tools related to the observance of ethics and control.
Selection, working out and approval of the necessary policies will be finished by June 1, 2018.
Compliance is something more than just fulfillment of the legal requirements however this point is the first manifestation of the “compliance” notion for most of the companies. There is a list of standard policies traditionally used in most of the companies or organizations notwithstanding their location or cope of activities.
The following compliance risks are observed as main object of the compliance control system:
- Violation of the compliance control principles within regulatory standards;
- Compliance-violation in financial manipulations;
- Violation of the compliance control norms as a result of the power abuse or corruption;
- Violation of the compliance control norms as a result of unprofessional activities or incompetency of the employees;
- Violation of the compliance control norms in course of the illegal takeovers, robberies and other external unlawful actions;
- Compliance risks in case of threats to the business reputation, financial insolvency.
The OECD Corporate Governance Guidelines for the state-owned enterprises, adopted in 2015, stipulate that state-owned enterprises and their public officials must behave in accordance with high standards of business ethics. Companies with public participation should develop programs and measures in the area of internal control mechanisms, business ethics and regulatory compliance, committing themselves to comply with all local laws and acting in accordance with wider codes of conduct. This should include the obligation to comply with the OECD Convention on Combatting Bribery and the implementation of the recommendations provided in the OECD Handbook on Principles of Good Laboratory Practices in the area of internal control mechanisms, business ethics and regulatory compliance.