KIEV, May 16 – A scandal marred the creation of a committee in Parliament to investigate offshore accounts after it emerged that one of its appointed members may be linked to an official that will be investigated.
President Petro Poroshenko’s party on Monday appointed five lawmakers to the committee. One of the appointed members, Volodymyr Ariev, may have previously hired as assistant a relative of Ihor Kononenko, a Poroshenko ally who was alleged of running corrupt practices.
“It calls into question the objectivity of Ariev as a member of the committee that will investigate activities of people, such as Kononenko,” Serhiy Leshchenko, a lawmaker and a prominent crusader against corruption, wrote on his Facebook page. “Ariev may have a conflict of interests from the start.”
The appointments raise questions on whether the Poroshenko party is willing to do what it takes to investigate the alleged corruption activities and offshore accounts.
The fight against corruption and promotion of reforms are key demands from the International Monetary Fund and the United States for continued financial support to Ukraine.
Poroshenko last month defended his commitment to transparency after lawmakers called for an investigation into allegations contained in the so-called Panama Papers that he had used an offshore firm to avoid tax.
According to the International Consortium of Investigative Journalists, Poroshenko set up an offshore company to move his confectionery business, Roshen, to the British Virgin Islands in August 2014 during a peak in f ighting between Ukraine and pro-Russian separatists.
In response, Poroshenko said he had handed over the management of his assets to consulting and law firms on taking office.
The law firm tasked with managing the sale of Roshen said the offshore firm was set up in accordance with Ukrainian law.
Poroshenko's financial adviser, Makar Paseniuk, said the offshore firm was created to avoid a conflict of interests by allowing his assets to be controlled by third parties while he remained president.
A senior official in the General Prosecutor's office said the leaked documents did not show that Poroshenko had committed any crime. (nr/ez)
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