19 November 2013 Federation of Employers of Ukraine
Business Inspecting Agencies To Prepare Reports for FEUAll 70 controlling agencies will provide the administration of the Federation of Employers of Ukraine with information about inspections of enterprises. As was stated by the President of the Federation of Employers of Ukraine Dmitry Firtash such instruction had been given by the Prime-minister of Ukraine.
According to the instruction, once in six months state inspecting bodies should give the FEU data about number of scheduled and extraordinary inspection, sums of financial sanctions, amount of prosecuted businessmen and enterprises which operations were stopped or suspended.
“Existing system of business control is a headache for business and state”, said Dmitry Firtash. He noted that in 2012, operations of 154.6 thousand of companies were stopped. “Visible shortfall in profits of all stopped companies has amounted to approximately UAH 27 billion”, stressed the President of the Federation of Employers of Ukraine. He added that the average penalty following inspections results equaled UAH 479, while state expenditures for one check amounted to UAH 11.6 thousand.
“We don’t need such amount of controllers. And the problem is not only in the number of checks but in paid services that business has to buy from state agencies because someone needs it. The Federation has analyzed work of 19 state executive bodies. There are 685 state agencies which business has to pay for some services. Price of some of them amounts to UAH 150 thousand”, said Dmitry Firtash.
The FEU President noted that the Federation would create its own monitoring system to evaluate the scale of controlling bodies’ impact on business.
“Checks and paid services are titanic problems that clog business. We have to change this situation – to reduce amount of inspecting agencies and to make their work transparent and understandable. This will be a real contribution to the business climate improvement in Ukraine”, said the FEU President.
In April 2013, the FEU presented the Registry of Inspecting Agencies including 70 state bodies. Over 2012 they made approximately 2,1 million checks of small and big companies, notably that 40% of inspections were unscheduled. The average penalty following inspections results equaled UAH 479, while state expenditures for one check amounted to UAH 11.6 thousand.
44 of 70 inspecting bodies can limit or stop economic activity of enterprises. In 2012, the work of 154.6 thousand of companies was stopped. According to the FEU estimates, average duration of idle period is 45 working days.
Shortfall in profits of all stopped companies during one day equaled UAH 600 million – 1 billion UAH. In 2012, direct expenditures of enterprises for inspections exceeded minimum UAH 27 billion.
The Registry is presented on the FEU website.
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