Tuesday, September 11, 2012

RC#67: Reluctant lawmakers

published in Eastern Economist #463, December 19, 2002

On Nov. 28, the Verkhovna Rada surprised everybody by refusing to replace the current very competent governor of the National Bank of Ukraine by a deputy who is also the head of a commercial banking group. Mr. Tihipko originally ran Dnipropetrovsk-based PrivatBank. Last year, he set up a new group called TAS (the initials supposedly stand for Tihipko Anna Serhiyivna, his 16-year old daughter). They bought out Société Générale’s investment branch in Kyiv when the French packed it in.
            The conflict of interest issue has had everyone on their ear. Even the IMF and the World Bank have had their say about Mr. Kuchma’s candidate.
            This is a partial transcription of what took place in the Verkhovna Rada of Ukraine on Dec. 12, thanks to my trusty dictaphone. The matter of dismissing Mr. Stelmakh was brought up a second time at the request of President Kuchma. The session started out normally enough.
10:01
Speaker Lytvyn: Good morning, honorable deputies, guests and visitors to the VR… 429 deputies have registered. I hereby declare this session open… Mr. Ostash please.
Deputy Ostash: My fellow deputies, I would like to draw your attention to the fact that we are in violation of our own procedures here today. Bills and resolutions rejected by the VR or those that essentially repeat bills that have been rejected, cannot be entered into the agenda during the same sitting of the legislature. According to this rule, we cannot today examine the question of removing the governor of the National Bank of Ukraine. We therefore request that this item be struck from the agenda.
Lytvyn: Thank you.
Deputy Matvienko: Mr. Speaker and Mr. Premier, I have a question to both of you. Could you please explain what is happening here? We’re violating VR regulations. No new circumstances have appeared, yet we have the dismissal of Mr. Stelmakh on our agenda again. The VR has already made its position clear regarding the president’s request.
Lytvyn: I can answer your question right now, Mr. Matvienko. We’re not in violation.
Noise errupts in the hall.
Deputy Lutsenko: My honorable deputies and the not-so-honorable Presidium. I would like to move that we give the podium to Deputy Sas.
Lyvtyn: Mr. Sas, please take the podium.
More noise in the hall.
Lytvyn: Please step forward. Deputy Sas from the VR procedures committee.
Deputy Sas: Thank you, Mr. Speaker… (goes on to explain the procedural details) … The second appeal of the President can’t be considered during the current VR session, according to VR rules.
Lytvyn: Thank you. Please finish. My fellow deputies, please take your places. Please. The procedures committee has made its position clear. Let’s move along, please. What else is needed? My fellow deputies, please take your places. Are we going to have to toss someone out?
More noise in the hall.
Lytvyn: Please, my fellow deputies. There are two draft resolutions regarding this issue–
More noise in the hall.
Lytvyn: Are you going to let me talk or not? I repeat. There are two – come on, now. I will make an announcement and then you can talk. Will you please quiet down or not? There’s a draft resolution put forward by Deputies Yushchenko, Moroz and Tymoshenko, about the unacceptability of this resolution. We will put this first one to a vote, about the unacceptability of the second resolution according to VR regulations, correct? And then we will put the other resolution to the vote, if necessary.
More noise in the hall.
Lytvyn: My fellow deputies, I declare this session adjourned until 10:45.
10:46
Lytvyn: My fellow deputies, let’s agree to one thing. I just met with the heads of all the factions. We agreed that first we will all take our places and then–
Noise errupts in the hall.
Lytvyn: Hold on a minute, my fellow colleagues, this won’t do! Please listen! If it’s necessary, I will tell you when to come to the podium. Please, take your seats and then you can come up one by one. We discussed the matter and came to – my fellow deputies – we came to the conclusion that–
More noise in the hall.
Lytvyn: My fellow deputies, the question is not so much a procedural one since it has taken on political overtones. As Mr. Yushchenko rightly said, there is a conflict of interests. So that there isn’t any further conflict of interests among us, and so that we can work in a civilized manner, I ask you to please take your seats. Mr. Stelmakh would like the right to speak and explain his position.
More noise in the hall.
Lytvyn: My fellow deputies, please! We agreed, if you – my fellow deputies – if you’re not prepared to listen – if you’re not prepared to listen to what the leaders of your factions –  We agreed that you would all take your seats. I’m asking you once more. My fellow deputies, I told you what happened during the last recess. Now we have a motion that we can’t really turn down. There’s a motion that we adjourn in order to consult with the NDP faction and the Industrialists. This session is hereby adjourned until 11:40.
11:41.
Lytvyn: My fellow deputies, during the last recess, we tried to – please, I ask you, what are you doing here? Are you going to knock me over? I’m state property… We had a constructive discussion but neither side was willing to change their position. Mr. Stelmakh tendered his resignation and this is what it says:
            “Please accept my resignation from the position of Governor of the NBU –”
Noise errupts in the hall.
Lytvyn: Hold on, I’m still reading – come on, folks, what’s going on here? His letter is being reviewed now, so I think this question has to be postponed. Now, so you all can calm down, I move that we all start working properly at 12:30. After that, I would appreciate if everyone put their minds to working seriously, productively and quickly. We have an entire list of documents to review. Are there any objections to this motion? I announce this session adjourned until 12:30… (etc etc, ad nauseam)

            There were two more adjournment and in the end, all that happened was a few microphones were broken, a few noses were out of joint, and Mr. Stelmakh kept his job. Makes you wonder why anyone would pay hundreds of thousands of dollars to be elected to such a thankless post… •

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