This disparity underscores the lower efficiency of state executors compared to their private counterparts, according to the Association of Private Executors of Ukraine.
Key Figures and Statistics
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Private Executors
- 9,508 auctions announced in 2024.
- 1,721 successful sales, amounting to UAH 292 million.
- Roughly 330 private executors participated in sales.
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State Executors (SES)
- 3,370 auctions announced, with 516 sales completed.
- Total sum of sold land plots reached only UAH 110 million.
- Employs around 3,400 state executors—indicating a larger workforce but lower total revenue.
These numbers highlight a threefold gap: private executors sold considerably more land than their state counterparts, despite operating with fewer personnel.
Possible Causes and Controversies
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Alleged Corruption and Inefficiency
- The Ministry of Justice’s internal structures, particularly the SES, face criticism for sluggish sales processes and less robust auction outcomes.
- The Internal Revenue Service of the ministry, central to these auctions, is scrutinized for potential conflicts of interest and inefficient property disposition.
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Deputy Minister Under Spotlight
- Andriy Gaichenko, who oversees the state executors, has been embroiled in media investigations. Reports suggest:
- Real estate registered to his relatives.
- Alleged facilitation for sanctioned Alfa Bank to shift funds offshore, rather than securing them for the state budget.
- These allegations raise concerns of high corruption risks and compromised leadership within the ministry.
- Andriy Gaichenko, who oversees the state executors, has been embroiled in media investigations. Reports suggest:
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Better Performance by Private Executors
- The success of private executors in land sales underscores higher efficiency, possibly due to market-driven incentives and less bureaucracy.
- The Association of Private Executors points to systemic issues within the state apparatus that might cause delayed or underperforming auctions.
Implications
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Reassessment of SES Role
- Calls have grown for the Ministry of Justice to evaluate and reform the internal enforcement mechanisms to eliminate corruption and improve outcomes.
- Advocates suggest introducing more transparent processes, performance-based oversight, and increased competition between public and private enforcement.
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Potential Legislative Changes
- Parliament may consider expanding the mandate of private executors or reforming the SES framework to level the playing field and boost accountability.
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Risk of Corruption
- Ongoing investigations into high-ranking officials, such as Deputy Minister Gaichenko, could lead to personnel changes and broader institutional reforms.
Conclusion
The State Enforcement Service’s underperformance in land plot sales—generating only UAH 110 million compared to UAH 292 million by private executors—spotlights significant efficiency gaps and potential corruption. With accusations levied against top ministry figures and a clear private sector advantage, reforms in the Ministry of Justice’s enforcement operations appear increasingly urgent to ensure fairness, transparency, and optimal revenue for the state.
