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US funds not misused in Ukraine, US Treasury says, amid corruption crackdown

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WASHINGTON – The US Treasury Department on Tuesday said it had no indication that US funds had been misused in Ukraine, but would continue to work closely with Ukrainian authorities to ensure appropriate safeguards were in place to avert corruption.

It was the Treasuryโ€™s first comment on the issue after Ukraineโ€™s government last week dismissed a slew of senior officials in the countryโ€™s biggest political shake-up of the war following corruption allegations.

โ€œWe have no indication that US funds have been misused in Ukraine,โ€ Treasury spokeswoman Megan Apper said in response to a query from Reuters.

โ€œWe welcome the ongoing efforts by the Ukrainian authorities to work with us to ensure appropriate safeguards are in place so that US assistance reaches those for whom it is intended.โ€

Ms Apper said the Treasury would continue to work closely with the World Bank on tracking US disbursements โ€œto confirm that they are used as intended, as well as with Ukraine and other partners to tackle corruption.โ€

Democratic and Republican US lawmakers last week praised Ukraineโ€™s government on Tuesday for taking swift action against corruption and insisted that US military and humanitarian aid to President Volodymyr Zelenskyโ€™s government should continue.

Ukraine has a long history of corruption in state-owned or managed companies. Mr Zelensky has repeatedly said there will be no tolerance for fraud or waste.

The World Bank has disbursed over US$13 billion (S$17 billion) to Ukraine through its Public Expenditures for Administrative Capacity Endurance (Peace) in Ukraine, as of December, much of it coming from the United States.

Peace funds are disbursed to Ukrainian authorities a month after bank officials have verified that they have paid salaries to teachers and civil servants and pension payments, which helps safeguard against problems.

The bank last month told Reuters it is working with Ukraine to improve its already well-regarded E-Government Procurement System called ProZorro, adding that digital system would help ensure transparency, integrity and ease of access.

Ukraine ranks 116 out of 180 countries on the annual Corruption Perceptions Index released Tuesday by Transparency International, up one ranking from last year.

Its score on the index was 33 on a scale of 0-100, where 0 means highly corrupt and 100 means very clean.ย REUTERS


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