Nineteenth Quarterly Accession Watch Report KILLER ASSUMPTION October 2013 KILLER ASSUMPTION Nineteenth Quarterly Accession Watch Report Publisher: Foundation Open Society - Macedonia For the publisher: Vladimir Milcin, Executive Director Prepared by: Macedonian Center for European Training Proofreading and Translation into English: Abacus Design & Layout: Brigada design, Skopje Print: Propoint Circulation: 500 Free/Noncommercial circulation CIP - Каталогизација во публикација Национална и универзитетска библиотека “Св. Климент Охридски”, Скопје 341.171.071.51(4-672ЕУ:497.7)”2013” УБИСТВЕНА претпоставка: деветнаесетти извештај од следењето на процесот на пристапување на Македонија во ЕУ. - Скопје : Фондација отворено општество - Македонија, 2014. - 105, 91 стр. ; 18x24 см Насл. стр. на припечатениот текст: Killer assumption : nineteenth quarterly accession watch report. - Обата текста меѓусебно печатени во обратни насоки. - Текст на мак. и англ. јазик. - Фусноти кон текстот. - Содржи и: Анекс 1-5 ISBN 978-608-218-197-4 а) Македонија - Зачленување - Европска унија - 2013 COBISS.MK-ID 95973130 CONTENTS I. EXECUTIVE SUMMARY 7 2.1. Southwest region 39 II. WHY THIS RESEARCH? 11 2.2. Skopje region 40 2.3. Pelagonija region 42 METHODOLOGY 14 2.4. Northeast region 43 III. ANALYSIS 16 2.5. Vardar region 44 1. MACEDONIA – CONSTANTLY UNDER PREPARATION 17 2.6. Polog region 44 1.1.What will the programme Erasmus+ look like? 17 2.7. East region 44 1.2. Differences between the programme Erasmus+ 2.8. Southeast region 45 and its predecessor 18 3. SUSPICIOUS ALLOCATIONS 45 1.3. Mobility as key objective 19 3.1. No place like Struga 46 1.4. Erasmus + and youth unemployment 20 3.2. Nesting CSOs 49 1.5. New approach to education 21 3.3. Coalition NOW… and here! 52 1.6. Key figures in Erasmus+ 21 3.4. Kumanovo’s punishment 53 1.7. Who needs the National Agency? 23 3.5. Sister CSOs 54 1.8. Where did the money go? 25 3.6. Omnipresent CSOs 55 1.9. How are funds distributed? 26 3.7. New, but successful CSOs 56 1.10. Somebody else’s conflict of interests 28 3.8. Specifically-tailored criteria 58 1.11. New favourite: Coalition NOW 33 4. COMMUNICATION STRATEGY 58 2. REGIONAL DISTRIBUTION 36 4.1. Reaction of the National Agency 59 4.2. Ministry of Education to the rescue 60 Table 7 – Project applications approved financing by 5. RISK ASSESSMENT 63 the National Agency on the 2nd deadline in 2012 for 5.1. Indifferent citizenry 67 the programme Youth in Action 34 5.2. Counter-protests 69 Table 8 – Projects approved by the National Agency on 5.3. Will failure be acknowledged? 70 the 3rd deadline in 2012 for the programme Youth in Action 35 CONCLUSIONS AND RECOMMENDATIONS 72 Table 9 – Project applications approved financing by the National Agency on the 1st deadline in 2013 for ANNEX I 76 the programme Youth in Action 36 ANNEX II 81 ANNEX III 88 Table 10 – Total amount of project grants per ANNEX IV 97 region awarded by the National Agency under the programme ANNEX V 98 Youth in Action 38 Table 11 – Projects grants awarded by the National Agency under the programme Youth in Action to CSOs from TABLES the Southwest region in the Republic of Macedonia 40 Table 1- IPA projects for the Republic of Macedonia and the National Agency 24 Table 12 – Project grants awarded by the National Agency under the programme Youth in Action Programme to Table 2 – Project applications approved financing by CSOs from the Skopje region in the Republic of Macedonia 41 the National Agency under the programme Youth in Action in 2009 27 Table 13 – Project grants awarded by the National Agency under the programme Youth in Action to CSOs from the Table 3 – Project applications approved for financing by Pelagonija region in the Republic of Macedonia 42 the National Agency under the programme Youth in Action to CSOs indicated by SCPC for conflict of interests 30 Table 14 – Project grants awarded by the National Agency under the programme Youth in Action to CSOs from Table 4 – Project applications approved financing by the Northeast region in the Republic of Macedonia 43 the National Agency on the 1st deadline in 2013 for the programme Youth in Action Programme to CSOs Table 15 – Project grants approved financing by indicated by SCPC for conflict of interests 31 the National Agency under the programme Youth in Acton to CSOs from the Southwest region in Table 5- 2012 deadlines for submission of project applications 31 the Republic of Macedonia 46 Table 6 – Project applications approved financing Table 16 – Project grants approved financing by by the National Agency on the 1st deadline in 2012 for the National Agency under the programme Youth in the programme Youth in Action 32 Acton to CSOs from the Skopje region in the Republic of Macedonia 49 Table 17 – Project grants approved financing by the National Agency under the programme Youth in Acton to CSOs from the Pelagonija region in the Republic of Macedonia 52 Table 18 – Project grants awarded by the National Agency under the programme Youth in Acton to CSOs from the Northwest region in the Republic of Macedonia 54 Table 19 – Project grants approved financing by the National Agency under the programme Youth in Action to CSOs from the Vardar region in the Republic of Macedonia 54 Table 20 – Project grants approved financing by the National Agency under the programme Youth in Action to CSOs from the Polog region in the Republic of Macedonia 55 Table 21 – Project grants approved financing by the National Agency under the programme Youth in Action to CSOs from the East region in the Republic of Macedonia 56 FIGURES Figure 1 – Ratio between project applications approved and rejected financing by the National Agency under the programme Youth in Action 37 Figure 2 – Total amount of funds per region awarded by the National Agency under the programme Youth in Action 38 Figure 3 – Index of links hosted on the website of Youth Forum EYE, Struga 57 Figure 4 – Risk Management 63 Figure 5 – Risk Assessment 65 ... ... I his Quarterly Accession Watch Report shows that European Commission’s suspension of funds for the National Agency for European Educational Programmes and Mobility1 (hereinafter: the National Agency) imposed due to irregularities back in 2010 and T2011 did not prevent the institution to continue awarding funds to CSOs close to its employees and the ruling authorities, on the next convenient opportunity in 2012. EXECUTIVE EC’s suspension was lifted as late as 2012, leaving only one year for project implementation and when de-commitment of IPA 2009 funds SUMMARY intended for institutional capacity-building was likely to happen. This programmed financial assistance from the EU, in the amount of € 2 million, was approved on 1 January 2010, before the scandal at the National Agency surfaced in the public. To avoid de-commitment of IPA funds, the EC crafted somewhat of a Solomon’s solution: it lifted the suspension at the moment when there was only one year 1 http://na.org.mk/index.php/mk/ 7 Nineteenth Quarterly Accession Watch Report for implementation (because two years passed under the suspension In the absence of pre-defined project application and selection imposed due to irregularities at the National Agency), but decided to procedure and transparent grant-awarding criteria, analysis of project manage centrally the funds (by the Education, Audiovisual and Culture applications approved by the National Agency leaves the impression Executive Agency in Brussels), although the Republic of Macedonia that funding is only possible under the following circumstance: was accredited for decentralized management of IPA funds. This report • CSOs have found partner organizations from the list administered demonstrates that the rushed decision to lift the suspension and save by Youth Forum EYE from Struga; IPA funds resulted in further consolidation and institutionalization of irregularities within the National Agency. • CSOs have indicated Struga as the project venue, preferably hotel “Solferino”, also known as the former Red Cross holiday camp; The research conducted for the purpose of this Quarterly Accession Watch Report reveals that from 2009 onwards, including the first deadline • CSOs project staff or associates have close relatives employed at the in 2013, a total of 47 grants in accumulative value of € 625,611.50 National Agency; have been approved, 35 of which can be categorized as “suspicious”, • CSOs have been established, managed or, at one point in time, have accounting for € 482,682.50 or around 77% of all the funds disbursed. employed a member of the National Agency’s management team; On the other hand, the analysis of distribution of project grants per • CSOs that have been suspected of conflict of interests by State region shows that the Southwest region is an absolute champion and Commission for the Prevention of Corruption (SCPC) have an that CSOs from this region have been awarded 41% of all funds disbursed advantage; (or €258,468). Concerns raised question the fact that this region is the hometown of Bosko Nelkoski, the former Director of the National • CSOs portfolios include projects implemented by individuals whom Agency, but also the place of origin for many employees of the National the National Agency considers as experts; Agency, recruited by him personally. Skopje region accounts for 28% of • CSOs have agreed to engage one or more people praised by the all funds disbursed (or €176,225) and CSOs from the Pelagonija region National Agency, as recommended; have been awarded 18% of all funds (or €110,125.50). • CSOs that have shared/co-hosted a website with Youth Forum EYE No other region in the Republic of Macedonia is so highly profiled from Struga have an advantage; in terms of youth organisations participating in programme actions managed and administered by the National Agency.