Day before start of work of DPA Supervisory Board, Defense Ministry changes its Charter, restricting its independence - statement
The Supervisory Board of the Defense Procurement Agency has appealed to Defense Minister Rustem Umierov to amend the Agency's Charter to limit the independence of the Supervisory Board.
The Defense Procurement Agency announced this on Facebook, Censor.NET reports.
Yurii Dzhyhyr was elected chairman of the Supervisory Board.
A calendar of meetings was also created and committees were established:
- the Audit Committee included Kateryna Kuznetsova, Taras Chmut and Lukasz Stoliarski, who chaired the committee;
the Nomination and Remuneration Committee included Yurii Dzhyhyr, Lukasz Stoliarski and Kateryna Kuznetsova, who chaired the committee.
What will fall within the competence of the supervisory board
- approval of draft strategy, financial plans, and organizational structure of the Agency;
- Appointment of the Head, setting indicators and evaluation of the Director's performance;
- approval of the anti-corruption policy;
- approval of significant economic obligations, as well as monitoring the implementation of contracts concluded by the Agency.
Members of the Supervisory Board initiated amendments to the Agency's Charter, which was reported to Defense Minister Umierov in an official letter.
"The latest version of the Charter was approved by the order of the Ministry of Defense No. 839 dated 16.12.2024, the day before the start of the Supervisory Board's work, and raised concerns about compliance with the principles of good governance.
According to the members of the Supervisory Board, these changes limit the independence of the Supervisory Board and create prerequisites for interference in its activities. In addition, the new version of the Charter creates risks of duplication of functions, conflict of interest and abuse of power due to the lack of a clear and balanced distribution of powers between the Ministry of Defense, the Supervisory Board and the Agency.
Members of the Supervisory Board proposed to bring the provisions of the Charter in line with the regulations and OECD corporate governance principles. Particular attention should be paid to the regulation of personnel issues in the Charter and the establishment of clear criteria for determining significant economic obligations.
The Supervisory Board emphasizes the importance of promptly finalizing the Charter and is committed to constructive cooperation and dialogue, as these shortcomings may adversely affect the efficiency of the enterprise and its ability to meet the needs of the Armed Forces of Ukraine," the statement said.
