Corruption overshadows Ukraine’s multi-billion reconstruction progam

Above, workers for French company Neo-Eco clear debris of a school in the village of Lyubomyrivka, Mykolaiv region on Feb. 14, 2024. The company abandoned a project in Ukraine due to corruption. (AFP)
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Updated 14 November 2024
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Corruption overshadows Ukraine’s multi-billion reconstruction progam

  • Transparency International ranked Ukraine 104 out of 180 countries in its ‘corruption perceptions index,’ up from 144 in 2013

KYIV: When Bart Gruyaert agreed to help rebuild destroyed apartment blocks outside Kyiv, he hoped to be one cog in Ukraine’s vast reconstruction program, repairing just some of the damage wrought by Russia’s invasion.
But when the French company he works for, Neo-Eco, applied for building permits in the town of Gostomel, the local military administration asked the company to transfer the funds for the multimillion-dollar project to its bank account, under the pretense that it would run the project directly.
Officials told Gruyaert, “it’s better if you transfer the money you received to our account,” he recalled.
“But it doesn’t work like that,” he said.
The company refused, and progress on the initiative, which had secured €20 million in private funding, immediately slowed.
It marked the latest example of the endemic corruption that has plagued Ukraine since it became independent after the fall of the Soviet Union in 1991.
After Neo-Eco’s refusal on the bank transfer, the local administration started dragging things out, adding new requirements to the contract and trying to incentivize the company to “give envelopes” to the right people, Gruyaert alleged.
The company reluctantly decided to abandon the project in September 2023, saying it was “impossible” to work under such conditions.
Following the saga, Ukrainian investigators said they had uncovered a system of “embezzlement” in the Gostomel military administration and accused its head Sergiy Borysiuk of appropriating around 21 million hryvnia ($470,000) meant for the reconstruction of houses and apartments.
In June 2023, after the allegations surfaced, Borysiuk was dismissed by President Volodymyr Zelensky.
He had pre-empted his removal with a press conference several days earlier in which he said he had done “everything possible” to ensure reconstruction efforts.
“It seems to me that you are looking for the enemy in the wrong place,” he said.
The case is far from isolated.
Even though Ukraine has stepped up its anti-graft measures over the past decade to advance its ambition of joining the European Union, corruption scandals are still rife.
Transparency International ranked Ukraine 104 out of 180 countries in its “corruption perceptions index,” up from 144 in 2013.
For some officials, Russia’s invasion has provided new opportunities for personal enrichment.
Several high-profile cases of alleged embezzlement of reconstruction funds, as well as the arrest of officials for selling army exemption certificates, have emerged throughout the war.
While a potential embarrassment for Ukraine, which relies on billions of dollars in Western financial support, Transparency International Ukraine’s director Andriy Borovyk said attention to the cases showed the problem was not being “forgotten.”
And authorities also tout the uncovering of such schemes as a sign of “effective” enforcement.
Just 10 years ago, “who could have thought that senior officials could be accused of crimes?” said Viktor Pavlushchyk, head of the National Agency on Corruption Prevention.
“Now we have some very good examples,” he said.
Around 500 corruption cases have been opened this year and 60 convictions secured, according to the National Anti-Corruption Bureau.
But there are lingering fears the persistent problem will hamper Ukraine’s massive reconstruction agenda, deterring international partners from putting up funds.
The total cost of reconstructing Ukraine stands is estimated at $486 billion, according to a joint study by the World Bank, UN, EU and Ukrainian government.
Gruyaert has not been deterred by his experience in Gostomel, which was occupied by Russian forces in the first weeks of the February 2022 invasion.
Ukraine is “making a lot of progress” on corruption, Gruyaert said, adding that Neo-Eco has had to learn how to “zigzag between the various obstacles.”
The company is still working on several other projects and encourages other foreign investors to get involved.
But, bruised by the Gostomel experience, it now prioritizes working with cities where it has confidence it will not be asked for kickbacks.
Most concede that much remains to be done in Ukraine’s anti-corruption fight, especially when it comes to reconstruction.
It is still common for local officials to have stakes in construction companies through their relatives, several figures said.
Ukraine is trying to weed out such conflicts of interest and make the whole process more transparent.
Last year, the country launched a platform listing all open projects.
Called “DREAM,” the aim is to enable investors, journalists and Ukrainians to track the progress of construction projects, said its head Viktor Nestulia.
A commitment to such openness will be key to reassuring foreign investors, said Mustafa Nayyem, an activist and journalist who headed the reconstruction agency until earlier this year.
“The war is not an excuse not to fight corruption,” he said.
Corruption, “is not in Ukrainian DNA, it’s simply a question of will.”


Uruguay votes for next president in closely fought runoff race

Updated 8 sec ago
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Uruguay votes for next president in closely fought runoff race

  • Final opinion polls suggest the Nov. 24 runoff promises to be razor tight
  • Fewer than 25,000 votes potentially separating the frontrunners
MONTEVIDEO: Voters in South America’s laid-back Uruguay, known for its beaches, legalized marijuana and stability, will head to the polls on Sunday in a second-round presidential race between moderates that closes out a bumper year of elections.
The vote in the small nation of 3.4 million people sees opposition center-left candidate Yamandu Orsi take on continuity conservative runner, Alvaro Delgado, who has the backing of a third-placed ally.
Final opinion polls suggest the Nov. 24 runoff promises to be razor tight, with fewer than 25,000 votes potentially separating the frontrunners.
Unlike sharp right-left divides in recent elections in Argentina, Brazil or Mexico, Uruguay’s political arena is relatively tension-free, with significant overlap between the conservative and liberal coalitions vying for office, taking some of the sting out of Sunday’s final result.
Ballot stations open at 8 a.m. (1100 GMT) and close at 7:30 p.m. local time, with first results expected two hours later.
Orsi, who has pledged a “modern left” policy approach, won 43.9 percent of the October vote for the Broad Front and will face Delgado, who secured 26.8 percent but also has the backing of the conservative Colorado Party that together with his National Party made up almost 42 percent of votes. The two parties did the same in 2019, winning the election.
Orsi has sought to reassure Uruguayans that he does not plan a sharp policy shift in the traditionally moderate and relatively wealthy nation.
Delgado meanwhile has asked voters to “re-elect a good government,” seeking to capitalize on the popularity of President Lacalle Pou, who constitutionally cannot run for immediate re-election.
Neither coalition has an absolute majority in the lower house following October’s elections. But Orsi’s Broad Front won 16 of 30 Senate seats. He argues his senate majority places him in a better position to lead the next government.
Both contenders on Sunday are hoping to attract the roughly 8 percent of first-round voters who went for smaller, unaligned parties, as well as those who failed to turn out in October.
But neither has made new pledges in the final weeks to appeal to them, and pollsters say a televised debate on Nov. 17 appears to have had little effect.
“I don’t know who I’m voting for,” said Rosario Gusque, 42, from the region of Canelones where Orsi was previously mayor. “Even less so after seeing the debate.”
One question as the biggest year for elections in history comes to an end is whether Uruguay will buck a global trend of incumbent parties losing vote share compared with the previous election. Voters hurt by inflation and high living costs have punished parties in power, including in Britain, Japan and the United States.
A robust Uruguayan economy though could help Delgado on Sunday: “There are few indications that voters are clamoring for significant political change,” said Uruguayan analyst Nicolas Saldias of the Economist Intelligence Unit.

82 killed in three days of Pakistan sectarian violence: official

Updated 3 min 46 sec ago
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82 killed in three days of Pakistan sectarian violence: official

Peshawar: Three days of bitter sectarian gunfights in northwestern Pakistan have killed at least 82 people and wounded 156 more, a local official said Sunday.
“Among the deceased, 16 were Sunni, while 66 belonged to the Shia community,” said a local administration official in Kurram district of Khyber Pakhtunkhwa province, speaking on condition of anonymity.
Pakistan is a Sunni-majority country but Kurram district — near the border with Afghanistan — has a large Shiite population and the communities have clashed for decades.
The latest bout of violence began on Thursday when two separate convoys of Shiite Muslims traveling under police escort were ambushed, killing at least 43 and sparking two days of gunbattles.
“Our priority today is to broker a ceasefire between both sides. Once that is achieved, we can begin addressing the underlying issues,” provincial Law Minister Aftab Alam Afridi said Sunday.

Pakistan partially stops mobile and Internet services ahead of pro-Imran Khan protest

Updated 10 min 7 sec ago
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Pakistan partially stops mobile and Internet services ahead of pro-Imran Khan protest

  • Sunday’s protest is to demand Khan’s release
  • The government is imposing social media platform bans and targeting VPN services, according to monitoring service Netblocks

ISLAMABAD: Pakistan Sunday suspended mobile and Internet services “in areas with security concerns” as supporters of imprisoned former premier Imran Khan geared up for a protest in the capital.
The government and Interior Ministry posted the announcement on social media platform X, which is banned in Pakistan. They did not specify the areas, nor did they say how long the suspension would be in place.
“Internet and mobile services will continue to operate as usual in the rest of the country,” the posts said. A spokesperson for the Interior Ministry was not immediately available for comment.
Khan has been in prison for more than a year and has over 150 criminal cases against him. But he remains popular and his political party, Pakistan Tehreek-e-Insaf or PTI, says the cases are politically motivated.
His supporters rely heavily on social media to demand his release and use messaging platforms like WhatsApp to share information, including details of events.
Pakistan has already sealed off the capital Islamabad with shipping containers and shut down major roads and highways connecting the city with PTI strongholds in the provinces of Punjab and Khyber Pakhtunkhwa.
The government is imposing social media platform bans and targeting VPN services, according to monitoring service Netblocks. On Sunday, Internet-access advocacy group, Netblocks said live metrics showed WhatsApp backends are restricted in Pakistan, affecting media sharing on the app.
Last month, authorities suspended the cellphone service in Islamabad and Rawalpindi to thwart a pro-Khan rally. The shutdown disrupted communications and affected everyday services such as banking, ride-hailing and food delivery.


Fire rips through slum area in Philippine capital

Updated 47 min 28 sec ago
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Fire rips through slum area in Philippine capital

  • Manila Fire District said around 1,000 houses were destroyed in the blaze
  • The structures housed around 2,000 families, according to the fire department

MANILA: Raging orange flames and thick black smoke billowed into the sky Sunday as fire ripped through hundreds of houses in a closely built slum area of the Philippine capital Manila.
Manila Fire District said around 1,000 houses were burned in the blaze that is thought to have started on the second floor of one of the homes.
There were no immediate reports of casualties.
Drone footage shared online by the city’s disaster agency showed houses in Isla Puting Bato village of Manila razed to the ground.
The structures housed around 2,000 families, according to the fire department.
Village resident Leonila Abiertas, 65, lost almost all her possessions, but managed to save her late husband’s ashes.
“I only got the urn with the ashes of my husband,” a crying Abiertas said.
“I really don’t know how I can start my life again after this fire.”
Fire and disaster services deployed 36 trucks and four fire boats while the country’s airforce sent in two helicopters to help extinguish the fire.
“That area is fire-prone since most of the houses there are made of light materials,” firefighter Geanelli Nunez said.


Turkiye’s Erdogan to discuss Ukraine war with NATO chief

Updated 24 November 2024
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Turkiye’s Erdogan to discuss Ukraine war with NATO chief

ANKARA: Turkish President Tayyip Erdogan will discuss the latest developments in the Russia-Ukraine war with NATO Secretary General Mark Rutte on Monday during his visit to Ankara, a Turkish official said on Sunday.
Russia struck Ukraine with a new hypersonic medium-range ballistic missile on Thursday in response to Kyiv’s use of US and British missiles against Russia, marking an escalation in the war that began when Moscow launched a full-scale invasion of its neighbor in February 2022.
NATO member Turkiye, which has condemned the Russian invasion, says it supports Ukraine’s territorial integrity and it has provided Kyiv with military support.
But Turkiye, a Black Sea neighbor of both Russia and Ukraine, also opposes Western sanctions against Moscow, with which it shares important defense, energy and tourism ties.
On Wednesday, Erdogan opposed a US decision to allow Ukraine to use long-range missiles to attack inside Russia, saying it would further inflame the conflict, according to a readout shared by his office.
Moscow says that by giving the green light for Ukraine to fire Western missiles deep inside Russia, the US and its allies are entering into direct conflict with Russia. On Tuesday, Putin approved policy changes that lowered the threshold for Russia to use nuclear weapons in response to an attack with conventional weapons.
During their talks on Monday, Erdogan and Rutte will also discuss the removal of defense procurement obstacles between NATO allies and the military alliance’s joint fight against terrorism, the Turkish official said.