Ukraine's Cabinet Strips Kuchma's Perks

Yahoo! News ^ | Sat Feb 26, 2005 | AP

[lizol]

Ukraine's Cabinet Strips Kuchma's Perks

Sat Feb 26, 7:10 PM ET Europe - AP

KIEV, Ukraine - Ukraine's Cabinet on Saturday stripped former President Leonid Kuchma of a plush retirement package that featured a monthly pension, two cars, a government home and much more.

New Prime Minister Yulia Tymoshenko had ordered the government to come up with a new, slimmed-down package for former officials.

Kuchma's privileges were canceled based on a decision by the Ministry of Justice that the previous government "exceeded its responsibilities," the Cabinet said in a statement.

On Jan. 19, five days before President Viktor Yushchenko was sworn in, acting Prime Minister Mykola Azarov signed an order giving Kuchma a monthly salary of $1,560 and allowing him and his wife, Lyudmyla, to keep their government-owned home in Ukraine's most exclusive enclave. The package also gave Kuchma two aides, an adviser, two cars, four drivers and a countryside residence.

A spokeswoman for Kuchma did not answer her phone on Saturday. Officials who answered the phone at Yushchenko's office refused to comment.

Anger against Kuchma runs deep in this former Soviet republic of 48 million. Many Ukrainians accuse him of having run the state like a personal fiefdom, enriching those close to him while the rest of the nation was choked by poverty and corruption.

Yushchenko, sacked by Kuchma in acrimony as prime minister in 2000, has cranked up the pressure on the previous government, ordering all sales of state property to be re-examined along with alleged "insider" deals under the previous regime.

Prosecutors are sifting through other major privatization deals and financial transactions, an investigation that is likely to focus on the wealthy clique of businessmen close to Kuchma, who had supported Yuschenko's rival in a bitter presidential campaign.

The average salary in Ukraine is about $120, and many villages are mired in poverty — surviving without hot water and sporadic electricity.

[lizol]

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[A. Pole]

Yushchenko, sacked by Kuchma in acrimony as prime minister in 2000, has cranked up the pressure on the previous government, ordering all sales of state property to be re-examined along with alleged "insider" deals under the previous regime.

Prosecutors are sifting through other major privatization deals and financial transactions, an investigation that is likely to focus on the wealthy clique of businessmen close to Kuchma, who had supported Yuschenko's rival in a bitter presidential campaign.

I wonder what would be the Western reaction if Putin did the same with Yeltsin era "free" market piratization deals?

Probably Putin would be decried as worse than Hitler and Russia would be nuked.

[franksolich]

Having been an involuntary observer of Ukrainian corruption, I think this is a move in the right direction. Ukraine is always destined to be poor until it cleans up its act, adopting the rule of law, a respect for the law.

[em2vn]

"......and many villages are mired in poverty — surviving without hot water and sporadic electricity."
Another Robert Kennedy junior success story.

[Lukasz]

I wonder what would be the Western reaction if Putin did the same with Yeltsin era "free" market piratization deals?
Probably Putin would be decried as worse than Hitler and Russia would be nuked.

Maybe, but Putin isn’t the “good guy” (reformist) here , he is representing “old Soviet team”. Russian oligarchs are actually aboard or in prisons, I doubt that Yuschenko will do the same.

[A. Pole]

Having been an involuntary observer of Ukrainian corruption, I think this is a move in the right direction.

I doubt it. One large invalidated deal was the purchase of the industrial complex (in the east of Ukraine of cource as western part has no industry) by the friends of Kutchma at the price 10% lower than offered by West European corporation.

What will happen that all Ukrainian industry will be acquired by the West for pennies and large part of this will be closed (to remove cheap competition or sold for scrap). Ukrainians will end up as beggars as they do not have Russian resources.

[A. Pole]

Russian oligarchs are actually aboard or in prisons

Not really, most of them are free and rich. Moscow has more bilionaires than New York.

[Lukasz]

Ukrainian oligarchs should be happy that they are not in prisons cause they totally deserved to be there. Looks like Yuschenko want take away from them only recently privatized firms, that is second reason for them to be happy.

[Lukasz]

What will happen that all Ukrainian industry will be acquired by the West for pennies and large part of this will be closed (to remove cheap competition or sold for scrap). Ukrainians will end up as beggars as they do not have Russian resources.

You are against privatization or what? Foreign investors will pay more than local oligarchs. Situation may be little similar to Poland’s, some things must be done. Ukrainians will define rules of the privatization process and if they are not corrupted then they cannot lose.

[Dustbunny]

ATTA Boys for Yushchenko.

Hope he is able to live long enough to actually bring a change in the Ukraine.

Have a soft spot in my heart for the Ukraine.

[geedee]

Ahhhh yes . . . TRUE Democratic transparency is the bane of ALL Socialists, Dictators, and Liberals, whether they be Big Fish or simple Minnow-serfs.

[geedee]

You, sir, have absolutely THE BEST homepage I've ever read . . . and it's a hobby of mine to read a bunch of them suckers.

To overcome your deafness handicap with such a positive attitude says a lot for your parents . . . but it speaks volumes for your personal character.

I salute you, sir, as one disabled soul to another. When I start feeling the least bit sorry for myself, courageous stories like yours remind me how small a man I am when I start crying my "woe is me" nonsense.

[ARCADIA]

What will happen that all Ukrainian industry will be acquired by the West for pennies and large part of this will be closed (to remove cheap competition or sold for scrap). Ukrainians will end up as beggars as they do not have Russian resources.

If their government allows that to happen, the they have a much bigger problem then who has ownership over their productive resources. Their government has sold them out. Economic/free market theory is one thing - caring for the well being of the population, and acting in the national interests is another. Any system which fails to achieve a balance is headed for failure.

[A. Pole]

Ukrainian oligarchs should be happy that they are not in prisons cause they totally deserved to be there. Looks like Yuschenko want take away from them only recently privatized firms, that is second reason for them to be happy.

The chief oligarch is Mrs. Timoshenko herself - the main sponsor of Yuschenko.

[Lukasz]

Very possible but Yuschenko is chief not Tymoshenko. When she said something that she want re-nationalize around 3000 firms Yuschenko immediately said that only around 30-40.

[A. Pole]

You are against privatization or what? Foreign investors will pay more than local oligarchs. Situation may be little similar to Poland’s, some things must be done. Ukrainians will define rules of the privatization process and if they are not corrupted then they cannot lose.

It is better to have local business class. Sellout of national assets to the highest bidder is not always good, especially when new owners are abroad.

Poland became the country with capitalism without capitalists - country of cheap workers. Industry, banks, natural resources are owned by the Germans and French and used to benefit Germany and France.

In XVII and XVIII Poles often elected foreigners to be their kings out of jealousy (so the other Pole could not rule over them). And it did not end well. Russia is lucky to have domestic oligarchs even if many are not ethnic Russians.

[Lukasz]

It is better to have local business class. Sellout of national assets to the highest bidder is not always good, especially when new owners are abroad.

I agree but you know very well that there is no really rich people in Poland or Ukraine and sooner or later they will sell own firms to the western companies. Other thing is that for example Ukrainian oligarchs owning their metallurgy industry but they don’t have enough funds to invest in infrastructure and their ironworks using old technology, automatically their products are lower quality.

Poland became the country with capitalism without capitalists - country of cheap workers. Industry, banks, natural resources are owned by the Germans and French and used to benefit Germany and France.

I agree but what we can do? Diversification of the foreign investors it is the only way, at least now.

[A. Pole]

I agree but what we can do? Diversification of the foreign investors it is the only way, at least now.

This is the "only way" according to the Western advisors and "investors" who followed their OWN interest and who bribed the politicians.

One can privatise by gradual distribution among the people who created the enterprizes under the socialist system ie among the citizens. Shares, pay-out spread over the several years, options, worker ownership, etc etc ... Precious natural resources could remain under national control as it is in many oil producing countries to help the state budget. I am sure that there even better ways which I did not come out at the moment, but Poles were not given chance to think for themselves.

Russian Duma tried to resist fire sale of national wealth to mafia and foreign speculators - then the Western leaders and media demanded the massacre of this main democratic institution in 1993 in the name of free market and "democracy". Yeltsin complied and Russiam life expectancy dropped by several years (what translates to the millions of deaths in addition to couple hundreds of Duma members and their defenders).

[ken21]

"The average salary in Ukraine is about $120, and many villages are mired in poverty — surviving without hot water and sporadic electricity."

boy, the commies sure left that place in good shape.