06 November 2013 Federation of Employers of Ukraine

FEU To Compile Rating of Inspecting Agencies Effectiveness

The Federation of Employers of Ukraine will develop the system for monitoring of activities of all 70 state agencies having right to audit work of enterprises. This decision was made during the session of the Federation of Employers of Ukraine Council in Kyiv.
 
“We want to understand – whether inspecting bodies help enterprises to do business, or vice versa they create problems. It is necessary to compile inspections rating. We would receive the public document allowing to draw conclusions about effectiveness of inspecting agencies work and to present these conclusions to the government”, said the President of the Federation of Employers of Ukraine Dmitry Firtash during the session.

According to Dmitry Firtash, for polling purposes a pool of enterprises representing all sectors of the real economy of Ukraine will be formed.

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.