The Asset Recovery and Management Agency (ARMA) doesn`t agree with the decision of the Cabinet of Ministers of Ukraine to reduce the maximum number of ARMA staff by 169.
By cost cutting the National Agency staffing, the Government limits its capacity to perform its tasks and functions, particularly under the new transparent procedures.
Most notably, ARMA will be unable to provide the projected multi-billion dollar revenues to the state budget, which is unacceptable, especially in light of the IMF's statement that Ukraine needs to find additional sources of funding.
Meanwhile, ARMA is proposed to optimize the number of employees of the state body by decreasing the maximum number of employees by 45 full-time equivalents.
The Agency understands the Government's public policy and the burden on the state budget during the war. As a solution, ARMA proposed to transfer 105 employees of the interregional territorial offices (ITOs) to the central office.
Thus, the proposed staff redistribution for 2024 should have resulted: 300 in the ARMA central office and 90 in the ITO (390 instead of 435 people in total).
The draft government act was considered at a government committee meeting chaired by Vice Prime Minister Mykhailo Fedorov. The Agency criticized the non-approval of the act in the proposed wording on the reduction of its number, and drew attention to the negative consequences for the state if it was approved. This stance received support from the Vice Prime Minister, Minister of Digital Transformation of Ukraine.
ARMA later received the opinion of the Ministry of Finance on the act's approval with comments on December 25 (No. 08010-05/643-5/36345). As a result of negotiations with the Ministry of Finance, an understanding was reached to support ARMA's position on the phased recruitment of employees.
On December 29, 2023, at a meeting of the Cabinet of Ministers of Ukraine, amendments to the CMU Resolution No. 85 were approved without taking into account ARMA's position and the Ministry of Finance's opinion.
The ARMA's plans for staff renewal are necessary primarily for the Agency to perform its critical tasks during the war: finding and tracing assets (in Ukraine and abroad), managing seized assets in Ukraine and abroad (in particular, their inventory, inspection, verification, control, announcement and reporting).
To perform these functions efficiently, the central office requires the following number of employees:
- Preliminary analysis and inspection of assets; preparation of documents for working, expert and tender commissions for the implementation of procedures for the selection of managers and sale of assets - 25 employees. These tasks (in particular submitting announcements in Prozorro and Prozorro.Sale systems; drafting management and sale agreements) require staff with specialized legal and economic education
- Filling in the Register of Seized Assets in the context of daily receipt of 300 to 700 decisions in paper and electronic form - 10 employees
- Activities of ARMA's International Department, including the sale of assets seized abroad, carried out by specialists with knowledge of international (private) law and economics - about 15 employees
- Completion of tax declarations in the context of the adoption of the Law on Amendments to the Tax Code of Ukraine on exemption of seized assets from taxation and customs duties - 15 employees
- Development of new mechanisms in the sanctions policy and return of sanctioned assets - plus 5 employees
- Legal department activities: workload due to litigation, development of regulatory acts and support of tender procedures - 15 employees
- Analytical support and strategic planning - 5 employees
- Improvement of the Register of Seized Assets: development of terms of reference and technical documentation to ensure unified, automated and simplified access to this database for all stakeholders - 10 employees
- Audit and work with the staff to improve the level of professionalism of ARMA employees - 5 employees.
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21-11-2024 News
