Corruption Getting Worse, say Business People in Ukraine
- New Europe Investor
- May 21, 2015
An Ernst & Young survey has shown that despite continued reforms in the Ukraine, people still believe corruption to be widespread.
The survey asked employees of large companies if they believe bribery and corruption to be widespread in the Ukraine.
80% of the respondents said that it was. This high figure is made worse by the fact that last year it stood at 60%.
Of some comfort is the fact Ukraine beat Croatia with 92%, and Portugal with 82%.
Lack of Action
It is now a year since Petro Poroshenko was elected president and public support whilst still strong, is starting to fall off due to slow progress on the economy and in reforms.
Head of Ernst & Young in Ukraine, Alexei Kredisova said “The deterioration of the business environment evaluation is evident. This could be due to a decline in economic indicators at the macro and micro levels, and the mismatch rate of development of anti-corruption practices in business and at the state level.”
Of most concern to Ernst & Young in the report, is the fact that 20% of respondents said they would feel justified in distorting financial reports simply for survival of the business.
This has led to a warning from Ernst and Young in the Ukraine in the reading of financial statements.
The survey was carried out by Ernst & Young in 38 countries. In total, they interviewed 3800 members of boards of directors among other senior and middle managers.