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Implementation of the Association Agreement Eu-Moldova: Progress Or Regress?

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Implementation of the Association Agreement Eu-Moldova: Progress Or Regress? POLICY RECOMMENDATIONS IMPLEMENTATION OF THE ASSOCIATION AGREEMENT EU-MOLDOVA: PROGRESS OR REGRESS? CHISINAU 2017 Table of contents Vladislav Gribincea Moldova: investigating 4 high-level corruption – progress or illusion Elena Prohnițchi Reforming the National 11 Integrity Commission: From Powerless Agency to Eff ective and Impartial Institution Igor Boțan Party Funding 18 Transparency as a Means for Reducing Political Corruption in Moldova Nadejda Hriptievschi Independence and 24 Accountability of Moldova’s Judiciary under Threat Victor Gotișan The Trials and 33 Tribulations of the New Law on Broadcasting Dumitru Alaiba Resetting the Moldovan 41 Banking Sector: What Can Europe Do and Why? Peer review: Mihail Popșoi Associate Expert, Foreign Policy Association of Moldova; PhD Candidate in Political Studies, University of Milan; Political Analyst, Jamestown Foundation. Introduction The Association Agreement Corruption is the main cause of the Setting a cap on annual political between the European Union and deep political and social-economic donations in accordance with the Republic of Moldova establishes crises in Moldova. It is impeding international practices, so that the necessity of domestic reforms the economic recovery and is individuals can donate no more aimed at the consolidation and crippling the development potential than 4-5 average salaries, and eff ectiveness of democratic of the country. High level political legal persons not more than 20 institutions and the rule of law. corruption is not only undermining average salaries, would mitigate the The Association Agenda aims at the peoples’ trust in national increasing dependence of parties facilitating the implementation of institutions, but also makes citizens on few wealthy donors. Stronger the Association Agreement. The question Moldova’s European oversight, credible investigation civil society and expert community path. A comprehensive approach to and eff ective penalties for fraud are an invaluable partner in this tackling high level corruption needs and malpractice in the banking regard. This regional advocacy to address the lack of transparency sector are also necessary to project on the ‘Implementation of in party funding, strengthen the preclude another “billion dollar Association Agreements between weak regulatory and oversight scandal”. Finally, the role of mass the European Union - Georgia, mechanism ensuring the integrity of media is particularly important. Moldova, and Ukraine' off ers an public offi cials as well as eff ectively Hence, independent media require important contribution to the increase the independence and additional support in light of ongoing policy debates in Moldova. accountability of the judiciary and increasing regulatory uncertainty The six policy briefs authored by law enforcement. and growing consolidation of leading national experts provide politically affi liated media. an insightful analysis of the state It is crucial to organize transparent of aff airs across a wide range contests for merit-based selection The EU must consistently request of policy areas. The problems and appointment of the leadership the Moldovan authorities to ensure identifi ed by the experts and the of the institutions implementing stricter oversight over the fi nancial recommendations they put forward anti-corruption and integrity and technical assistance provided should not only contribute towards policies as well as judges and for the implementation of reforms a more informed public debate, but prosecutors. Another priority under the Association Agenda. The also help Moldovan and European is ensuring the transparency of experts also call on the European decision makers to advance the decision making process in the Union to closely monitor the fi ght goals of the Association Agenda in Supreme Council of Magistracy against corruption in Moldova and fi elds such as integrity and anti- and the full implementation of the react through political channels corruption, party funding, judicial reform of the prosecution service. in case of deviations. EU should accountability, banking, and media. However, all of this is diffi cult to include strict and quantifi able achieve as long as political parties conditions aimed at ensuring remain dependent on a handful the fulfi llment of commitments of donors who may have a vested undertaken by the Moldovan interest in perpetuating the status side. Given the concerns about quo. Therefore, enhancing the Moldova slipping away from its transparency of political parties commitments, the EU is well fi nancing and accountability of advised to increase its support for a elected candidates is an essential strong and independent civil society element of combating corruption and mass media, as it is imperative and promoting the rule of law. not only for holding the national government to account, but also for upholding European values and vindicating Moldova’s European path. This brochure is prepared in the framework of the project „Monitoring implementation of select reform commitments under EU agreements in Georgia, Moldova, Ukraine” implemented with the support of the Soros Foundation-Moldova and the Eurasia Program of the Open Society Foundations. The views expressed in this publication are those of the authors alone and do not represent the views of the Soros Foundation- Moldova or the Open Society Foundations Vladislav Gribincea JANUARY 2017 LEGAL RESOURCE CENTER, MOLDOVA1 Moldova: investigating high-level corruption – progress or illusion? POLICY BRIEF Executive summary Corruption is one of the most signifi cant impediments for the economic recovery of the Republic of Moldova, as along with being the main cause for the deep political and social-economic crises in the country since 2013. Additionally, it is cited by the Moldovan people as the primary reason for their disappointment with the political class and reforms announced after 2009, when the governance in Moldova changed. Combating corruption has been one of the top priorities of all Moldovan Governments since 2009, and is one of the main priorities of the 2014 EU-Moldova Association Agenda. Moderate reforms, mostly legislative, were put in place up until 2016. In 2016 the Moldovan Parliament adopted important legislation aimed at combating corruption, however, it was not suffi cient to ensure that corruption is eff ectively prosecuted in Moldova. Proper implementation of this legislation is more important and recent events suggest that implementation remains a very serious problem. This brief aims to address the measures taken by the Moldovan authorities to ensure that high-level corruption is adequately investigated. It is recommended that the Republic of Moldova increase funding for prosecution services and intensify its eff orts for eradication of corruption within the prosecution service and judiciary. The leadership of the prosecution service must be appointed on merits and in a transparent manner. The legislation shall also be amended to exclude from the 1 Legal Resources Centre from Moldova competence of the Anticorruption Prosecution Offi ce the petty corruption (LRCM) is a Chisinau based independent cases and be adequately staff ed. The European Union is also called to think tank with extensive expertise in closely monitor the fi ght against corruption in Moldova and adequately the reform of the justice sector. More information about LRCM is available at react in case of deviations, using both diplomatic and fi nancial tools www.crjm.org. Mr. Gribincea can be found available. at [email protected]. This policy brief is prepared in the framework of the project „Monitoring implementation of select reform commitments under EU agreements in Georgia, Moldova, Ukraine” implemented with the support of the Soros Foundation-Moldova and the Eurasia Program of the Open Society Foundations. The views expressed in this publication are those of the authors alone and do not represent the views of the Soros Foundation- Moldova or the Open Society Foundations Introduction Republic of Moldova is one of the poorest European nations, with a per capita GDP eleven times lower than Romania and ten times lower than Bulgaria. Corruption is one of the most signifi cant impediments for the economic recovery of the country. This has been recognized both by the Government of Moldova, as well as foreign Government and international organizations working with Moldova. Combating corruption has been among the announced top priorities of all Moldovan Governments since 2009. The 2014 EU-Moldova Association Agenda also provides that Moldovan authorities shall ensure the independence, impartiality, professionalism and effi ciency of prosecution service and intensifi cation of the prevention and fi ght against corruption in all its forms and at all levels, especially against high-level corruption. In 2016 the Moldovan Parliament voted a new Law on prosecution service and the “Integrity Package”, which are of crucial importance for fi ghting corruption in Moldova. The new Law on prosecution service strengthens prosecutor independence in addition to doubling their salaries. In 2015- 2016, a number of high-profi le corruption cases were initiated, however, the population perceives these reforms as in name only, with state institutions being corrupt and the majority of high profi le cases being politically motivated. According to the most recent public surveys, the Moldovan people consider corruption and poverty as the top problems of their country. In October 2016, public trust in the justice system was 8%, compared
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