Financial control as a tool for preventing corruption offenses

Abstract

The purpose of this paper is to analyse financial control, in specific in the area of combating corruption offences; to study the peculiarities of national anti-corruption legislation in the area under study; to propose specific amendments to the current legislation due to the detected shortcomings in the regulation of financial audit as a tool for preventing corruption offences in Ukraine.

The article deals with issues related to the analysis of the concept of financial control in the context of corruption prevention, in particular, in accordance with the provisions of the Law of Ukraine ‘On Prevention of Corruption’. The author reviews the definitions of financial control provided by domestic scholars and the classification of its types depending on the entity conducting such an audit: state, municipal, public and audit. Particular attention was devoted to the state financial control, its role in ensuring transparency of budgetary processes, prevention of corruption and efficient use of budgetary funds.

In Ukraine, there are bodies of both general and special jurisdiction that exercise financial control, including the President of Ukraine, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the National Bank of Ukraine, the Accounting Chamber, the State Audit Service of Ukraine and the State Treasury. Although the study found some overlaps in the powers of the above bodies, their importance cannot be overstated.

The study concentrated on the institution of declaration as an important component of financial control aimed at minimising corruption risks. The key problems related to the declaration were highlighted, including the definition of the circle of persons subject to declaration and the importance of improving the regulatory framework. Moreover, the author highlights not only the need to introduce appropriate amendments to the current legislation of Ukraine, but also suggests what changes can contribute to a more effective functioning of the financial control institution in combating corruption.