Compliance control of conflict of interests in the general system of internal control and resource management
Abstract
The results of the research published in the article will be useful to professionals directly or indirectly involved in the process of identification and resolution of conflicts of interest, to managers at all levels and to internal control and compliance professionals. The article summarizes the arguments and counterarguments within the scientific discussion on the specificity and peculiarities of the concept of conflict of interest, its nature and not identical with the concept of corruption. The article deals with the conceptual apparatus of the conflict of interest problem and defines the main approaches to the resolution of conflicts of interest and summarizes the research results in this area. Based on the analysis of legal acts and other sources, it is determined that the existence of a conflict of interest is not a necessary prerequisite for the occurrence of a corruption offense. The results of the monitoring of compliance with the legislation on conflict of interests and other restrictions on the prevention of corruption are clearly illustrated, information on the functioning of the system of prevention and detection of corruption in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine is presented.
The direct participants of anti-corruption activities in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine were identified, considerable attention was paid to the issue of conflicts of interest in the structural units of the defense department, namely to authorized persons for the prevention of corruption. Also, a certain algorithm of implementation of the process of identification of risks related to the presence of conflicts of interest in the system of internal control and compliance is formulated. An example is given of preventing and avoiding conflicts of interest through the use of specific tools. The study empirically confirms and theoretically proves that the identification of existing conflicts of interest in a separate structural unit must be taken into account when identifying and assessing risks in the functioning of the internal control system.
Methodical tools of the study were methods of analysis, synthesis, comparison, induction, deduction. The study period is from 2014 to the present.
Downloads
References
Rishennya Rady natsionalʹnoyi bezpeky i oborony Ukrayiny vid 20 trav. 2016 r. zatverdzhene Ukazom prezydenta Ukrayiny №240/2016 vid 6 chervnya 2016 roku № 240/2016. (2016). Pro Stratehichnyy oboronnyy byuletenʹ Ukrayiny [About the Strategic Defense Bulletin of Ukraine]. Available from: http://www.president.gov.ua/documents/2402016-20137 (accessed: 01.10.2019).
Indeks spryynyattya koruptsiyi-2018 [Corruption Perceptions Index-2018]. Transperensi Interneshnl Ukrayina : veb-sayt. Available from: https://ti-ukraine.org/research/indeks-spryjnyattya-koruptsiyi-2018/ (accessed: 01.10.2019).
Pro zasady derzhavnoyi antykoruptsiynoyi polityky v Ukrayini (Antykoruptsiyna stratehiya) na 2014-2017 roky [On the Principles of State Anti-Corruption Policy in Ukraine (Anti-Corruption Strategy) for 2014-2017]: Zakon Ukrayiny vid 08 ser. 2015 r. №1699-VII. Available from: https://zakon.rada.gov.ua/laws/show/1699-18 (accessed: 02.10.2019).
Pro zatverdzhennya Derzhavnoyi prohramy shchodo realizatsiyi zasad derzhavnoyi antykoruptsiynoyi polityky v Ukrayini (Antykoruptsiynoyi stratehiyi) na 2015-2017 roky [On approval of the State Program on Implementation of the Principles of State Anti-Corruption Policy in Ukraine (Anti-Corruption Strategy) for 2015-2017]: Postanova Kabinetu Ministriv Ukrayiny vid 29 kvit. 2015 r. № 265. Available from: https://zakon.rada.gov.ua/laws/show/265-2015-p (accessed: 02.10.2019).
Pro zapobihannya koruptsiyi [On Prevention of Corruption]: Zakon Ukrayiny vid 14 zhov. 2014 r. № 1700-VII. Available from: https://zakon.rada.gov.ua/laws/show/1700-18 (accessed: 02.10.2019).
Pytannya zapobihannya ta vyyavlennya koruptsiyi [Pytannya zapobihannya ta vyyavlennya koruptsiyi: Postanova Kabinetu Ministriv Ukrayiny vid 04 ver. 2013 r. № 706. Available from: https://zakon5.rada.gov.ua/laws/show/706-2013-p (data zvernennya: 02.10.2019).]: Postanova Kabinetu Ministriv Ukrayiny vid 04 ver. 2013 r. № 706. Available from: https://zakon5.rada.gov.ua/laws/show/706-2013-p (accessed: 02.10.2019).
Pro zatverdzhennya Typovoyi antykoruptsiynoyi prohramy yurydychnoyi osoby [On Approval of the Model Anti-Corruption Program of a Legal Entity]: Rishennya Natsionalʹnoho ahent·stva z pytanʹ zapobihannya koruptsiyi vid 02 ber. 2017 r. № 75. Available from: https://zakon.rada.gov.ua/laws/show/z0326-17 (accessed: 02.10.2019).
Infohrafika. Monitorynh dotrymannya zakonodavstva pro konflikt interesiv ta inshykh obmezhenʹ shchodo zapobihannya koruptsiyi. Natsionalʹne ahent·stvo z pytanʹ zapobihannya koruptsiyi [Infographics. Monitoring compliance with legislation on conflicts of interest and other restrictions on the prevention of corruption. National Anti-Corruption Agency] : veb-sayt. Available from: https://nazk.gov.ua/uk/departament-monitoryngu-dotrymannya-zakonodavstva-pro-konflikt-interesiv-ta-inshyh-obmezhen-shhodo-zapobigannya-koruptsiyi/infografika/ (accessed: 02.10.2019).
Kodeks dobrochesnoyi povedinky ta profesiynoyi etyky viysʹkovykh posadovykh osib, derzhavnykh sluzhbovtsiv ta inshykh osib, upovnovazhenykh na vykonannya funktsiy derzhavy, v Ministerstvi oborony Ukrayiny ta Zbroynykh Sylakh Ukrayiny [Code of Good Conduct and Professional Ethics for Military Officials, Civil Servants and Other Authorized Persons in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine]: zatverdzhenyy Ministrom oborony Ukrayiny vid 15 ber. 2017 r. Available from: http://www.mil.gov.ua/diyalnist/zapobigannya-proyavam-korupczii/ (accessed: 02.10.2019).
Metodychni rekomendatsiyi shchodo perevirky faktu podannya subʺyektamy deklaruvannya Ministerstva oborony Ukrayiny ta Zbroynykh Syl Ukrayiny deklaratsiyi vidpovidno do Zakonu Ukrayiny “Pro zapobihannya koruptsiyi” ta povidomlennya Natsionalʹnoho ahent·stva z pytanʹ zapobihannya koruptsiyi pro vypadky nepodannya chy nesvoyechasnoho podannya deklaratsiy. Ministerstvo oborony Ukrayiny [Methodological recommendations for verifying the fact that the subjects of declaring by the Ministry of Defense of Ukraine and the Armed Forces of Ukraine a declaration in accordance with the Law of Ukraine “On Corruption Prevention” and the notification of the National Agency for Prevention of Corruption on cases of failure to file or late submission of declarations. Ministry of Defense of Ukraine] : veb-sayt. Available from: http://www.mil.gov.ua/diyalnist/zapobigannya-proyavam-korupczii/ (accessed: 02.10.2019).
Orhanizatsiyno-metodychni vkazivky shchodo realizatsiyi derzhavnoyi antykoruptsiynoyi polityky v diyalʹnosti Ministerstva oborony Ukrayiny ta Zbroynykh Syl Ukrayiny v 2019 rotsi. Ministerstvo oborony Ukrayiny [Organizational and methodological guidelines for the implementation of the state anti-corruption policy in the activity of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine in 2019. Ministry of Defense of Ukraine]: veb-sayt. Available from: http://www.mil.gov.ua/diyalnist/zapobigannya-proyavam-korupczii/ (accessed: 02.10.2019).
Pro zatverdzhennya Antykoruptsiynoyi prohramy Ministerstva oborony Ukrayiny na 2018-2020 roky [On Approving the Anti-Corruption Program of the Ministry of Defense of Ukraine for 2018-2020]: nakaz Ministerstva oborony Ukrayiny vid 27 kvit. 2018 r. № 190. Ministerstvo oborony Ukrayiny : veb-sayt. Available from: http://www.mil.gov.ua/diyalnist/zapobigannya-proyavam-korupczii/ (accessed: 02.10.2019).
Zvit z vykonannya u 2018 rotsi zavdanʹ i zakhodiv Antykoruptsiynoyi prohramy Ministerstva oborony Ukrayiny na 2018 — 2020 roky. Ministerstvo oborony Ukrayiny [Report on the implementation in 2018 of the tasks and activities of the Anti-Corruption Program of the Ministry of Defense of Ukraine for 2018 - 2020. Ministry of Defense of Ukraine]: veb-sayt. Available from: http://www.mil.gov.ua/diyalnist/zapobigannya-proyavam-korupczii/ (accessed: 02.10.2019).
Yanyuk N. Ponyattya «konflikt interesiv» u mizhnarodno-pravovykh aktakh ta administratyvnomu zakonodavstvi Ukrayiny [The concept of "conflict of interest" in the international legal acts and administrative legislation of Ukraine]. Visnyk Lʹvivsʹkoho universytetu. Seriya yurydychna. 66 (2018), s. 147–154.
Pro zatverdzhennya Polozhennya pro orhanizatsiyu vnutrishnʹoho audytu v bankakh Ukrayiny [On approval of the Regulation on the organization of internal audit in banks of Ukraine]: Postanova Natsionalʹnoho banku Ukrayiny vid 10 trav. 2016 r. № 311. Available from: https://zakon.rada.gov.ua/laws/show/v0311500-16 (accessed: 03.10.2019).
Pro zatverdzhennya Zahalʹnykh pravyl povedinky derzhavnoho sluzhbovtsya [On Approval of the General Rules of Conduct of a Civil Servant]: Nakaz Holovnoho upravlinnya Derzhavnoyi Sluzhby Ukrayiny vid 23 zhov. 2000 r. № 58. Available from: https://zakon.rada.gov.ua/laws/show/z0783-00 (accessed: 03.10.2019).
Metodychni rekomendatsiyi z pytanʹ zapobihannya ta vrehulyuvannya konfliktu interesiv u diyalʹnosti osib, upovnovazhenykh na vykonannya funktsiy derzhavy abo mistsevoho samovryaduvannya, ta pryrivnyanykh do nykh osib [Guidelines for the Prevention and Settlement of Conflict of Interests in the Activities of Persons Authorized to Perform the Functions of State or Local Self-Government and Equal Persons]: Rishennya Natsionalʹnoho ahent·stva z pytanʹ zapobihannya koruptsiyi 14 lyp. 2016 № 2. Available from: https://zakon.rada.gov.ua/rada/show/v0002884-16 (accessed: 03.10.2019).
Pro zapobihannya koruptsiyi [On Prevention of Corruption]: Zakon Ukrayiny vid 14 zhov. 2014 roku № 1700-VII. Available from: https://zakon.rada.gov.ua/laws/show/1700-18/print (accessed: 04.10.2019).
Polityky i praktyky zapobihannya konfliktu interesiv u devʺyati krayinakh YES. Porivnyalʹnyy ohlyad. Support for Improvement in Governance and Management [Conflict of interest policies and practices in nine EU countries. Comparative Review. Support for Improvement in Governance and Management]: veb-sayt. Available from: www.sigmaweb.org (accessed: 04.10.2019).
Zvit shchodo antykoruptsiynoyi diyalʹnosti Ministerstva oborony Ukrayiny u 2018 rotsi. Ministerstvo oborony Ukrayiny [Defense Ministry's 2018 Anti-Corruption Activity Report. Ministry of Defense of Ukraine]: veb-sayt. Available from: http://www.mil.gov.ua/diyalnist/zapobigannya-proyavam-korupczii/ (accessed: 02.10.2019).
Byudzhetnyy kodeks Ukrayiny [Budget Code of Ukraine. Information of the Verkhovna Rada of Ukraine, No. 50-51 (2010), p.]. Vidomosti Verkhovnoyi Rady Ukrayiny, № 50-51 (2010), st.572.
Pro zatverdzhennya Osnovnykh zasad zdiysnennya vnutrishnʹoho kontrolyu rozporyadnykamy byudzhetnykh koshtiv ta vnesennya zmin do postanovy Kabinetu Ministriv Ukrayiny vid 28 veresnya 2011 r. № 1001 [On approval of the Fundamental Principles of Internal Control by Budget Managers and Amendments to the Cabinet of Ministers of Ukraine Decree No. 1001 of September 28, 2011]: Postanova Kabinetu Ministriv Ukrayiny vid 12 hrudnya 2018 r. № 1062. URL: https://zakon.rada.gov.ua/laws/show/1062-2018-p (accessed: 03.10.2019).
Poryadok orhanizatsiyi v systemi Ministerstva oborony Ukrayiny vnutrishnʹoho kontrolyu ta upravlinnya ryzykamy [The order of organization in the system of the Ministry of Defense of Ukraine internal control and risk management]: nakaz Ministerstva oborony Ukrayiny vid 02.04.19 № 145. Available from: http://www.mil.gov.ua/diyalnist/vnutrishnij-kontrol.html (accessed: 03.10.2019).
Posibnyk OESR z pytanʹ vrehulyuvannya konfliktiv interesiv na derzhavniy sluzhbi [OECD Handbook on Civil Service Conflicts of Interest]. URL: http://www.acrc.org.ua (accessed: 03.10.2019).
Anatolii A. Loishyn, Ivan M. Tkach, Oleh I. Uhrynovych, Dmitry A. Okipniak and Maryna, V. Potetiuieva. Risk management in defense program: Evidence from Ukrainian arm forces. Management Science Letters, 9 (2019), 1071–1082. DOI: 10.5267/j.msl.2019.3.017. Available from: http://growingscience.com/beta/msl/3166-risk-management-in-defense-program-evidence-from-ukrainian-arm-forces.html
Loishyn, Anatolii A. Tkach, Ivan M. Liashenko, Ihor O. Zinchenko, Andrii & Lobanov, Anatolii A. Research of main international approaches for risk management process`s standardization in the context of internal control standardization in the Armed Forces of Ukraine and providing national security. Revista Espacios. ISSN 0798 1015 Vol. 40 (Nº 20) Year 2019/ Available from: http://www.revistaespacios.com/a19v40n20/19402014.html
Ukrayinsʹki kompaniyi pochaly vprovadzhuvaty komplayens-kontrolʹ. Shcho tse i navishcho? You control [Ukrainian companies have begun to implement compliance controls. What is it and why? You control]: veb-sayt. Available from: https://youcontrol.com.ua/blog/komplaiens-kontrol-shcho-tse-i-navishcho/
Pro publichni zakupivli [On Public Procurement]: Zakon Ukrayiny vid 25 hrud. 2015 r. № 922-VIII. Available from: https://zakon.rada.gov.ua/laws/show/922-19 (data zvernennya: 07.10.2019).
Antykoruptsiyna prohrama yak instrument upravlinnya ryzykamy v biznesi [Anti-corruption program as a risk management tool in business]. Liha zakon : veb-sayt. Available from: http://uz.ligazakon.ua/ua/magazine_article/EA009531
The Sarbanes-Oxley Act. A Guide To The Sarbanes-Oxley Act : веб-сайт. Available from: http://www.soxlaw.com/index.htm
Abstract views: 721 PDF Downloads: 415
Copyright (c) 2019 Natalia Loishyna, Kostyantyn Kustrich, Mykola Tkach, Sergey Levchenko, Vitalii Getmanskii
This work is licensed under a Creative Commons Attribution 4.0 International License.
The authors agree with the following conditions:
1. Authors retain copyright and grant the journal right of first publication (Download agreement) with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors have the right to complete individual additional agreements for the non-exclusive spreading of the journal’s published version of the work (for example, to post work in the electronic repository of the institution or to publish it as part of a monograph), with the reference to the first publication of the work in this journal.
3. Journal’s politics allows and encourages the placement on the Internet (for example, in the repositories of institutions, personal websites, SSRN, ResearchGate, MPRA, SSOAR, etc.) manuscript of the work by the authors, before and during the process of viewing it by this journal, because it can lead to a productive research discussion and positively affect the efficiency and dynamics of citing the published work (see The Effect of Open Access).
