USAID ends funding for Ukraine customs reform

Former Georgian president and former governor of Odessa region Mikheil Saakashvili, left, and Yulia Marushevska, former head of the customs office at the Black Sea port of Odessa, at an anti-government rally in central Kiev on Nov. 27. (Reuters)

ODESSA/KIEV: The US Agency for International Development (USAID) has ended funding for a flagship customs reform project in Ukraine’s Odessa region, as the government’s ambitious plans to tackle bribe taking at its Black Sea ports stalled.
USAID and other institutions have supported Kiev’s Western-backed government, which took power after the 2014 Maidan street protests, to fight endemic corruption and put an economy battered by an ongoing separatist war back on its feet.
But the saga around Odessa customs underscored what critics of the government say is its patchy record of delivering change.
Yulia Marushevska, a young Maidan activist with no prior civil service experience, was appointed to head Odessa customs in 2015. She quit in November, saying there was no real political will to support her reforms.
Mikheil Saakashvili, the former Georgian president who was parachuted in to become governor of Odessa, accused Ukrainian President Petro Poroshenko and the government of sabotaging reforms. Poroshenko’s office said Saakashvili was deflecting blame for his own failures.
A USAID official, who did not want to be named, said Odessa had some early successes, such as introducing a single window clearance system at the customs, and stressed that feedback from businesses and regional officials had been positive.
“As the situation in Odessa changed and it became apparent that there was no clear way forward for continuing our partnership with Odessa Customs, the program was concluded,” the official told Reuters.
Marushevska told Reuters that officials with a vested interest in maintaining the status quo blocked her changes, such as her attempts to fire corrupt officials and build a new customs terminal operating with computers provided by USAID.
“USAID is in the process of reclaiming the computers that have not been used and will redistribute them to other USAID projects and partners in support of Ukraine’s reform process,” the USAID official said.
Roman Nasirov, the head of the Fiscal Service and Marushevska’s erstwhile boss, questions whether she brought meaningful reforms. Nasirov told Reuters he had launched an investigation into Marushevska, suspecting her of deliberately undervaluing cargo.
Marushevska said on Facebook the allegations were politically motivated.

Seeking investments
Ukrainian President Petro Poroshenko on Friday tried to bring in foreign investment and slash corruption by temporarily banning the tax police from conducting unannounced checks on companies’ operations.
The measure is also supposed to let small businesses thrive by letting them stay open without any inspections for three years.
Ukraine’s tax police and other inspection authorities are notorious for accepting bribes as a reward for letting companies stay in business after committing minor — or even made-up — violations.
An improvement in the cash-strapped and war-torn country’s business climate has been a constant demand wrapped into a $17.5-billion rescue package approved by the International Monetary Fund last year.
The second measure is already in effect while the battle to reign in the billionaires is taking more time.
The law adopted on Friday moves one step further by putting tough curbs on the powers of the tax police.
Poroshenko said the tax authorities would no longer be investigative but rather “consultative” in nature.
That means companies will be able to turn to them with questions but no longer have to open up their books during spot inspections.