The Holos party has lost a court challenge to the National Agency for the Prevention of Corruption (NAPC) order to suspend its state funding, based on the discovery of inaccurate data in the party’s reports for the third and fourth quarters of 2020, involving nearly 5 million hryvnia in expenses.
The high-profile case came after the NACP found that the Holos party had transferred significant funds to the Maintis company for services that, according to the agency, were not provided. In addition, funds were transferred to two entrepreneurs for bills that had not yet been registered with the Verkhovna Rada at the time the contracts were concluded.
On June 25, the NACP first suspended, and then completely stopped, state funding for the Holos party. In an attempt to overturn this order, the party representatives went to court, where their interests were represented by lawyers Oleksandr Denysenko and Maryna Ryashchenko. They put forward several arguments in defense of the party, but the court did not find them convincing.
Key arguments of Holos party lawyers
- The essence of the activity of the company "Maintis": the NACP emphasized that the main type of activity of the company is wholesale trade in household electrical goods, and nine other companies are registered at its address. However, party representatives claimed that "Maintis" also provides other services, including legal assistance, which was the basis for concluding an agreement with the party.
- Tax reporting of the company: The NACP referred to data from the State Tax Service, according to which the company did not report on employees, which indicates the absence of economic activity. At the same time, Holos' lawyers pointed out that the NACP's conclusions were based on analytical studies by the tax service, which only noted that "the financial and economic activities of Maintis LLC were likely carried out in violation of the requirements of tax legislation."
- Lack of evidence of contracts: In April 2023, a court found Maintis co-founder Kostyantyn Tsymbal guilty of a criminal offense, but the party stated that no document was concluded between Tsymbal and Holos. At the same time, the signatory of the contract was Ruslan Huseynov, who claimed that he knew nothing about the signing of this contract.
- Methodology for verifying reports: When verifying the party's reports for 2020, the NACP used the procedure for analyzing reports of political parties, approved in 2016, but already declared invalid in 2021. Holos' lawyers emphasized that to determine the repeatability of violations, it was necessary to use the Code of Administrative Offenses, not the law.
Consequences for the Holos party
Taking into account the violations identified, the NACP suspended state funding of the statutory activities of the Holos party until the causes of the violations were eliminated. The court decision, which could not be appealed, cast doubt on the party's financial transparency and its ability to continue functioning.
A court hearing to overturn the funding freeze is scheduled for September 4, but the prospects for a successful appeal seem unlikely under the current circumstances. Holos now faces the need to rehabilitate its reputation and correct its mistakes.
