Page 9 - UKRRptOct18

However, what’s significant here is that Prodan belongs to the entourage of the nation's Prime Minister Volodymyr Groysman, while the prosecutor general’s office is controlled by President Petro Poroshenko. "So the investigations indicate tensions between the two leaders and their inability to form a political alliance ahead of the presidential election campaign (the elections are expected in March 2019). Such an alliance would have 'ironed out' any alleged corruption," Zawada wrote in a note on September 6.
While Groysman was elected to parliament in 2014 as a candidate with the Poroshenko Bloc, it’s unlikely he will compete with the same party in the October 2019 parliamentary elections, the expert believes.
"He will likely compete for a single-mandate district (if they remain) as an independent representing his native Vinnytsia, where he remains very popular," Zawada added. "He will remain an influential player in Ukrainian politics, particularly if he’s able to avoid damage to his image from the natural gas price hikes that are being demanded by a mission of the International Monetary Fund (IMF), which starts its talks with the government today."
Earlier, the IMF demanded from Kyiv to reform the SFS. Specifically, the SFS should be reorganised into "a single legal entity", its staff will be reshuffled with the aim of leaving in place non-corrupt professionals with higher salaries. The Ukrainian authorities are also going to increase payers trust to the system via automating the process of tax administration. SFS pressures on business should be decreased via transform into "a service organisation", the finance ministry said.
The IMF already pointed out the progress in the reform of the SFS, in particular in VAT refunding. At the same time, corruption and the reform's slow pace are among the factors hindering the reform, the finance ministry added.
2.3 NABU, SAPO officers get into fist fight
The bitter rivalry between Ukraine’s two leading anti-corruption agencies – the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAPO) – descended to farcical levels on September 19. When one of the agencies caught the other trying to bug its offices the ensuing row ended in a fistfight between the agents. One officer’s arm was broken. The some of the agents stole the car of the other to make good their escape - and promptly caused a car crash. The two agencies were set up at the insistence of Ukraine’s western donors to bring to an end the country’s endemic graft, seen as crucial for Ukraine’s development, but since their establishment the two agencies spend much of their time arresting and investigating each other.
On September 19, the SAPO accused NABU detectives of an attempt to install a cable to spy on the prosecutor’s office. When the alleged bureau detectives were caught red handed, NABU special forces arrived at the scene, assaulted a prosecutor’s office security guard and broke his arm, stole his vehicle, causing an accident in the process, the pravda.com.ua news site reported. The bureau agents also fought with police who arrived at the scene, according to local media.
9 UKRAINE Country Report October 2018 www.intellinews.com