Corruption and overregulation in Ukraine are extremely far-reaching, and even sectors such as maritime have been crippling because of them. In particular, up until recently, Ukrainian sailors had to confirm their qualifications through a specific exam that served as leeway for corruption interests.
According to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), all seafarers must prove their fitness for service in accordance with their diploma and rank. The convention provides an array of options sailors can choose from to prove their professional suitability such as successful completion of an approved training course, or confirmation of their sailing experience.
However, according to national law, the only way to prove qualifications (and re-confirm diplomas) is to take examinations (oral or written) at the State Qualification Commission (SCC), which creates corruption risks that Ukrainian sailors complain about.
Every five years, 200,000 Ukrainian sailors need to pass the said exam.
With the information we got from them, it is impossible to pass the exam without a bribe there due to the human factor – examiners and their greed. Depending on the rank, a sailor might need to pay an average of $3,000 to $8,000 or even more. All together it is about $120-150 million in corruption per year! This information has been confirmed by journalistic investigations multiple times. Such financial losses on the side of sailors are completely unjustified, and in fact, they have to foot the bill for the flawed legislation.
Ukraine isn’t the only country in the post-Soviet space to have faced such a problem. Over 15 years ago, Georgia, which like Ukraine has the sea but doesn’t have its own marine, was fighting the same bureaucratic battle. In both countries, sailors are a very important part of the economy as they contribute to its regional development as consumers and entrepreneurs. The fact that, according to the existing legislation, they have to pay a seven-month salary to get a diploma by bribing authorities is completely outrageous.
The corruption scheme persists due to the mentioned loopholes in Ukrainian legislation that make it obligatory for sailors to pass an oral or written examination (which must not be passed without a bribe, as noted) to obtain their qualifications. However, the requirement in question is hardly consistent with the STCW Convention, according to which the examination as a means to prove professional suitability is optional.
Additionally, the experience of the Netherlands, Germany, Denmark, and a number of other developed countries shows that there is no need for examinations to confirm qualifications (diplomas).
At the request of Ukrainian sailors, together with the Ministry of Infrastructure, we put together a concise reform to reduce corruption and get rid of the unnecessary regulation of the maritime industry. Our proposal is based on the convention, and it makes it possible for sailors to use their experience on board as proof of their eligibility. Oral and written surveys will be replaced by computer-based testing when the qualifications can be confirmed with work experience. This will significantly cut the red tape and modernize Ukrainian legislation. Bureaucratization and lack of transparency stimulate corruption, and we should address every corruption-inducing incentive.
Minister of Infrastructure Vladyslav Krykliy was very supportive of our concept and showed political will to amend the existing regulations, and I would like to thank him and his team for that.
In February, Krykliy signed a draft order, which cancels the testing, where it is not needed, and also eliminates the human factor, which is a possibility of corruption. It might take a while before that is actually enforced. Although Krykliy knew that this decision was unpopular within the bureaucracy and carried corruption risks with it, also he was personally threatened and the procedure of his resignation was about to start soon. But we are convinced that he is doing the right thing and we are aware of all the enemies behind the scene.
Together, we are simplifying the current regulatory system to prevent corruption by introducing convenient digital services to free sailors from unnecessary and costly interactions with intermediaries during the certification.
