Timothy Ash: Zelensky’s disappointing response to audiotape scandal

By Timothy Ash.

It was disappointing, in the end, how President Volodymyr Zelensky responded to Prime Minister Oleksiy Honcharuk’s offer to resign after leaked audio recordings of a meeting with top advisers. The audiotapes revealed disparaging remarks about the president’s lack of understanding about the economy.

Honcharuk did nothing wrong – he was taped, and leaked from, a private meeting with his economic team. They were jamming, as everyone does in these kinds of meetings, and some honest things were said. Neither Zelensky nor Honcharuk are trained economists – Zelensky knew that when he hired Honcharuk. Honcharuk just stated the obvious and the fair comment was how does the economy team explain complex issues to lay people, in economics at least, like Zelensky.

The issue is not what was said in meetings, but who leaked the tapes and why. As Honcharuk said most likely it was opponents of reform and those now fighting against the 2015-17 banking reforms.

Honcharuk did the decent thing, offering to resign – albeit unconstitutionally to the president, not the Verkhovna Rada.

Zelensky’s response was to focus more on what was said in the meetings, attacking his Cabinet for perceived underperformance, rather than attacking the anti-reformers who leaked the information. Honcharuk’s authority has been eroded, perhaps terminally.

This was an attack by Zelensky on reformers, including Honcharuk, his cabinet, and the National Bank of Ukraine. He should instead have backed them up for what they have achieved.

Specifically, in an aside to the land reform team, he demoted in effect Economy Minister Tymofiy Mylovanov by taking away his overall management of land reform splitting it between ministries. This is not going to end well and is just going to risk infighting, delay, and sub-optimal outcomes.

Zelensky attacked, in effect, cabinet calls for fair remuneration for ministers. This has been a constant demand by reformers – so they can hire talent and reduce pressure for corruption. Previous governments have got around the issue by little brown packages or envelopes, informally given by political leaders to ministers and their staff. This just breeds political dependency and is a form of corruption. If ministers and their staff have to survive on hundreds of dollars a month, corruption will happen and sub-optimal policy outcomes will result. Corrupt outcomes. Zelensky said any minister who is not happy with the pay can leave. Maybe they will – not everyone is a millionaire entertainer, or has family “wealth.”

And then Zelensky brought up the bonuses due to Naftogaz staff for winning the $2.9 billion Stockholm arbitration ruling against Gazprom. Specifically, this seems now like a direct effort to oust the current reform team – Andiry Kobolyev and Yuriy Vitrenko to whom most of these bonuses are now owed. That would be doing in effect the work of those now fingered in the U.S. impeachment investigations where Naftogas was often mentioned.

Now Kobolyev and Vitrenko are confident guys, some might say arrogant. They have their enemies. But let’s not forget that their personal acumen, their skills, and foresight, brought this huge victory in the gas wars with Russia. No one thought Ukraine had a cat in hell’s chance of victory – I did not. But they pressed on against the odds. They had tenacity in this David versus Goliath battle. And they won for Ukraine. Ukraine benefitted with a huge paycheck of $2.9 billion – near enough a year’s budget deficit financing or half defence spending.

A contract was signed with a winner’s bonus – would anyone have questioned back in 2014/15 paying out a few million to managers on a case that no one expected them to win but where Ukraine could secure billions in a win?

But they worked their arses off and won, and now with cash in the Treasury’s bank account, Zelensky is going back on contracts. So Ukraine under Zelensky does not honor contracts?

I thought that was what the Stockholm ruling was about. Pay these managers what they are due and let them make the decision whether they keep all or some of the money and whether they donate some of this to good causes. But don’t go back on the contract and denigrate real heroes who delivered a huge victory for Ukraine. And certainly don’t use this as an excuse to force talent from office.

All the above again raises the question as to who Zelensky is really working for? What oligarchic interests are really running the show? As yet, Zelensky has not proven himself really independent from all oligarchs. Rather events around the Honcharuk scandal seem to play well for one particular extra special oligarch.

(c) KyivPost

5 comments

  • “Rather events around the Honcharuk scandal seem to play well for one particular extra special oligarch.”

    The author seems rather shy in naming the extra special oligarch. OK we all know it’s Kolomoisky that is running the country, Zelensky couldn’t run a piss up in a brewery. The question is, who is running Kolomoisky?

    Liked by 5 people

  • Not a bad article. But now look at this insane OpEd that calls for a Dem govt. I hate Trumpkov, but I would never call for a Dem govt: the very people who have a 100% record of doing fuck all about putler.

    https://www.kyivpost.com/article/opinion/editorial/this-cannot-stand.html?cn-reloaded=1

    Liked by 5 people

  • англійський масон

    The issue is not about whether a ‘bonus’ should be paid to a supposed ‘managers’ who ‘worked their asses off’.
    We all fucking well work our asses off.

    Its about obscene amounts of money being paid out when they shouldn’t be, because that money belongs and could be better used with the amount gained.
    It still stinks even when there is a contract.

    This is the problem with the World, the Parasites are taking over.

    Nobody is being paid for producing what we need and cannot do without, we have become obsessed with overpaid sportspeople, overpaid ‘reality’ TV and all the other shite that seems to abound.
    The argument in their favour is that they bring a lot of joy and happiness to thousands of people. Well if that brings you joy and happiness your going to be fucked when the Zombie apocalypse comes.

    I’m praying for that Zombie apocalypse, lets get rid of all the fucking parasites.

    Liked by 4 people

    • Funny when russians mention jewry, which sadly has become an important factor conerning financial parasites, they never mention their shirtless mouse king – who is currently by far the biggest parasite on the planet.

      Liked by 5 people

  • Zelensky has obviously not figured out what priorities he has … not for his government, nor for the country. Give credit where credit is due in a level-headed manner and amount.Set a precedent for others to follow and the fight against corruption could be won. This takes guts, foresight, a good staff and determination.

    Liked by 6 people

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.