16.06.2025
Analysis of corruption risks: SFE “Forests of Ukraine” continues a joint project with the Basel Institute on Governance

Representatives of SFE “Forests of Ukraine” participated in the Steering Committee meeting of the Swiss-Ukrainian “Anti-Corruption and Asset Recovery Support” project (ACARSU).

 

The discussion covered interim results of the collaboration, future directions for cooperation, and the development of Ukraine’s new Anti-Corruption Strategy for 2026–2030.

 

In the course of the event, the Basel Institute on Governance presented information on the results of its cooperation with Ukrainian partners, including SFE “Forests of Ukraine” (the Institute and SFE “Forests of Ukraine” signed a memorandum of cooperation last year).

 

During 2024–2025, the Institute conducted an analysis of corruption risks within the governance system of SFE “Forests of Ukraine,” including its HR functions and procurement processes. Internal anti-corruption provisions were refined, and a number of risk-minimization recommendations were issued—some of which have already been implemented.

 

For example, the Basel Institute on Governance noted that the audit function does not operate as an autonomous, independent unit but is integrated into the Department of Security. This creates a risk of compromising the guarantees of internal auditors’ independence and opens the possibility of unlawful influence on their decision-making and audit conclusions.

 

The recommendation has been implemented: the Audit Division now functions as a separate organizational unit.

 

Among other measures, the distribution of functional responsibilities within the enterprise’s management has been revised to prevent an excessive concentration of authority in any one individual.

 

Representatives of the Institute also pointed to the high risk of interference in the enterprise’s operations by state authorities. As of this year, an independent governing body—the Supervisory Board of SFE “Forests of Ukraine”— has been established.

 

Cooperation between SFE “Forests of Ukraine” and the Basel Institute continues. Planned for 2025–2026 are: an assessment of corruption risks in the forestry sector, measures to minimize risks in procurement, and training on conducting internal investigations.

 

For reference

 

The Basel Institute on Governance is an independent non-profit organization specializing in anti-corruption and asset recovery. The Institute provides technical support to Ukrainian institutions, in particular in the areas of strategic risk analysis, implementation of digital tools, staff training, and the development of solutions for effective governance.

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