Financing of Political Parties in Montenegro

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Financing of Political Parties in Montenegro FINANCING OF POLITICAL PARTIES IN MONTENEGRO Report for year 2006 Publisher: The Monitoring Center CEMI; Hercegovačka 49/II, 81 000 Podgorica Tel: +382 81 665 169, Fax: +382 81 665 170, www.cemi.cg.yu For publisher: Zlatko Vujović Design and pre-print: PR Centar - Podgorica; Print: Mouse studio – Podgorica Authors: Zlatko Vujović, President of the Board of directors Branko Bošković, project manager of the Monitoring Center Translation: Jelena Čolaković Maja Mugoša This Initiative was conducted with the support of Foundation Open Society Institute, Representative Office Montenegro FOUNDA TION OPEN SOCIETY INSTITUTE Representative Office Montenegro FINANCING OF POLITICAL PARTIES IN MONTENEGRO Report for year 2006 CONTENT Part I Commentary of the Proposal of the Law on financing political parties 13 1. Basic provisions 16 2. Financing of the work of parliamentary parties 21 3. Financing of the work of councilors and representatives 23 4. Electoral campaign financing 24 5. Prohibitions 30 6. Reports’ filing and publishing 32 7. Political party’s financial dealings 36 8. Penal provisions 37 9. Transitive and final provisions 40 Part II Financing of political parties in Montenegro 41 1. Introduction 43 2. Regular financing OF political parties in Montenegro 45 3. Financing of electoral campaign – elections in September 2006 66 4. Costs of electoral administration work for elections September 2006 77 5. Conclusion 82 Part III Assessment of regulation of political party finance in Montenegro and recommendations for changes in legal framework 85 1. Introduction 89 2. Assessment of the current legal framework 90 3. Recommendations 101 Part IV CEMI’s initiative for the estimation of provisions of the Law on financing political parties 107 1. CEMI’ S initiative in front of the Constitutional Court 109 2. Desidion of the Constitutional Court 112 3. Rationale 113 Part V Financial report of DPS-SDP (Democratic party of Socialists-Social Democratic Party) coalition for parliamentarian elections from September 10th 2006 117 Part VI Legal regulations overview 129 1. The Law on Financiong of Political Parties 131 2. The Law on the amendsments to the Law on Financiong of Political Parties 139 3. Proposal of the Law on financing political parties 141 Part VII 155 ORGANIZATION PROFILE 155 Monitoring Center CEMI FOREWORD Monitoring of financing political parties is a project that the Monitor- ing Center CEMI is realizing for almost four years with the support of the Foundation Open Society Institute-Montenegro office. Efforts that were made started from the activity which concerned the adoption of the law that regulated this area in 2004 and was initiated by CEMI aiming to monitor the quality of this law appliance afterwards. Modi- fication of this law that happened under the consensus of almost all politi- cal parties in 2005 influenced our organization to be once again focused on legislative area. A year of this project realization, that this report comprises, is in its most part dedicated to the creation of the model of the Law on financing of political parties, lobbying for the support to its adoption, as well as regular activities within the area of monitoring of this law appliance. The report in- cludes a year that is quite interesting from the aspect of monitoring of politi- cal parties’ financing, because it involves referendum, elections on national, city and municipal level as well as elections for mayor and municipal presi- dents. The question of monitoring referendum campaign financing is treated within a special publication of our organization while elections mentioned represent the subject of this edition. Within this project free access to information related to political par- ties’ financial reports, public officers’ property and income as well as tender documentation of public provisions was made possible trough out a base that is available on our web site. Publication in front of you represents one of the results of project mentioned and has a goal in expert and wide public get- ting familiar with the situation within the area of financing of political parties in Montenegro as well as CEMI’s anti-corruption activities related to it The publication is consisted of seven parts. First part presents the Commentary of the Law on financing political parties done by the CEMI’s working group. Commentary is given for every article of the law separately and for some legal solutions we have comparative experience presented. Second part represents the review of political parties financing in 2006 which comprises regular financing, electoral campaign financing for elections held in September 2006 as well as summary. Thia part also includes the re- 11 Financing of political parties in Montenegro view of electoral administration expenses but it also paid attention to the referendum campaign financing. Within the third part we have recommendation of the Council of Eu- rope on the account of existing legal framework modification in Montene- gro. Fourth part is related to the CEMI’s appeal to the Constitutional Court that concerned the provision of the Law on modifications and amendments of the Law on financing political parties adopted in 2005. Here we can find the rationale of the Constitutional Court after the decision was made as well as expert’s commentary of the same decision. Aiming to meet the public with the appearance of a report on funds gathered and spent within the fifth part one can find a report of the Coalition of Democratic Party of Socialists and Social-Democratic Party for parlia- mentary elections held on September 10th 2006. the word is about the only report submitted for the financing of electoral campaign in these elections. We emphasize that we presented relevant report pages i.e. ones that show electoral campaign incomes and expenses. Sixth part implies a review of legal regulations, the Law on financing political parties, the Law on modifications and amendments of the law on financing political parties as well as Model of the law on financing political parties. For the last one CEMI gathered 6000 signatures and it will be given to the Parliament of Montenegro for adoption within the period to come. With the organization profile one can meet within the last and seventh part of the publication. Zlatko Vujović 12 Part I Commentary of the Proposal of the Law on financing political parties Monitoring Center CEMI Commentary of the Proposal of the Law on financing political parties After the Law on financing political parties has been adopted on the suggestion of CEMI in 2004, the same lived significant changes within the subsequent year that undermined appliance effects and introduced solutions contrary to international standards. Simultaneously with CEMI’s work on the new text of the Law on financing political parties, and to the invitation of Administration for anti-corruption, initiated by CEMI, Council of Europe did the analysis of legal framework as well as recommendations on how to improve the area of political parties’ financing in Montenegro. Model of the Law on financing political parties, that CEMI proposes, is coordinated with these given recommendations. Period that anticipated this initiative is characteristic for bad results of legal regulations appliance that are reflected especially within the rejection of parliamentary parties to act according the Law. On the other hand, state organs in charge for the appliance of the law still in force, haven’t showed the readiness to use mechanisms standing at their disposal to improve the effects of its appliance. Having the intention to speed up the process of international stan- dards adoption concerning this area and therefore contribute heightening of effects of legal regulations’ appliance, by this new law CEMI proposes the in- troduction of new as well as the improvement of the existing legal solutions trough out the adoption of the new Law on financing political parties. Model of the law is consisted of nine chapters. First chapter-Basic pro- visions treats the questions of (1) subject of definition; (2) public recourses; (3) private recourses; (4) using budget funds; (5) right to budget funds; (6) private sources and (7) Supervision. Secon, third and fourth chapter treat three financing manners provided by this law: (1) Financing of the work of parliamentary parties; (2) Financing of the work of councilors and repre- sentatives; (3) Electoral campaign financing. For every manner of financing named within these chapters the text also provides the manner of allocation and allowed usage of funds. Chapter five treats the questions of prohibition: (1) The prohibition of financing and (2) The prohibition of pressure making. Sixth chapter regulates filing and publishing of different forms of report. It defines the question of (1) Filing reports on usage of budget funds for electoral campaign (2) Filing reports on funds spent from private sources 15 Financing of political parties in Montenegro for electoral campaign; (3) Filing of the complete report; (4) Filing of the report of councilors and representatives; (5) Publishing of reports; (6) Filing of report on property; (7) Publishing of names of physical and legal entities. Special, seventh chapter represents Financial dealings of political party that treats the question of(1) Legal regime of political party’s regime and (2) Ob- ligations of book keeping and financial control. Eighth chapter, Articles 34, 35, 36, 37, 38, regulates the question of misdemeanor responsibility for vio- lating the Law on financing political parties. Provided fines are more detailed than it is the case of currently valid law, because during the implementation a significant part of regulations was not respected which demanded a more strict penal politic. The last and ninth chapter consists of transitory and final provision that regulates the old law to be out of force and the new one be- come valid. In case this model is adopted, Montenegro will coordinate this are with international standards, which will enable significant progress within the field of fight against corruption due to the introduction of efficient measures of control and sanctioning of law violators.
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