Expert: SBI should appeal to NBU Governor with a motion to remove Zyma, director of the National Bank's legal department

The State Bureau of Investigation should submit a motion to the head of the National Bank of Ukraine, Andriy Pyshnyi, to suspend Oleksandr Zyma, director of the NBU's legal department, from his duties for the duration of the investigation into the possible abuse of power or authority. This opinion was expressed in an exclusive commentary to UNN by security expert Serhiy Shabovta.

The SBI reported that it had opened a criminal investigation  into Zyma's possible abuse of power or office. According to UNN, he sent a letter to the Deposit Guarantee Fund on behalf of the National Bank recommending that it withdraw the lawsuits filed by Concorde's shareholders against the NBU before the process of its liquidation had even begun. The DGF complied with the recommendation of Zyma, who is also the chairman of the Fund's administrative board, and withdrew the claims.

"We have to understand that it is the SBI that has jurisdiction - it is under its jurisdiction to initiate a case (opening criminal proceedings - ed.), to check officials. This is the function of the SBI. This situation exists, there is a criminal proceeding, so now the SBI must make a submission to the NBU governor, who has the right to make such decisions, to suspend him for the duration of the investigation. Based on the SBI's submission, I am convinced that this will be done from both a moral and professional point of view," Shabovta said.

Olena Shcherban, Deputy Executive Director and Head of the Legal Department of the Anti-Corruption Action Center (AntAC), noted that removal from office is applied when an official is suspected of committing a malfeasance and may continue to violate the law in the course of his or her duties.

"It is clear that such a person, if he or she continues to hold office, will continue to commit a crime, influence witnesses, possibly destroy evidence and use his or her position, influence, and position to avoid responsibility. When all these circumstances are present, then, of course, the issue of suspension is initiated until the investigation is completed," Shcherban said.

Regarding Zyma's recommendations, Shabovta noted that he was not surprised by such actions of the official and "this is part of the corruption schemes that have existed and been operating for decades in Ukraine.

Shabovta also added that there are also questions about the appointment of heads of liquidation commissions of banks that are being withdrawn from the market.

Recall

Last year, for the first time in Ukraine, not only bankrupt banks but also profitable institutions were subject to liquidation and license revocation, including Concord Bank. The process of depriving a banking institution of its license takes place without a court. Of course, the owners and shareholders of banks may appeal the decision of the regulator, the NBU, after it has made a decision to liquidate the bank, but in general, the process of withdrawing a banking institution from the market, once it has been launched, is irreversible. 

In addition, the issue of liquidation of a profitable bank has not been regulated in Ukraine. According to Olena Sosedka, co-owner of Concord Bank, at the time the regulator announced the decision to liquidate the bank, the financial institution had enough highly liquid assets to make all the necessary payments in 2-3 weeks. However, the process of bank liquidation is strictly regulated by law and can generally take up to three years.