Parliament activity, May 31 - June 4, 2004
7 June 2004
The latest Parliament session held on June 3, 2004 had two major goals:
- Overview of the outcomes of administrative-territorial reform;
- Unable deputies from all parliamentary factions to raise questions and issues.
Both issues were fiercely debated with administrative-territorial reform proponents proving the efficiency of the undertaken measures and opponents arguing that it was useless and served only subduing local government. Senior Deputy Prime Minister Vasile Iovv that reported on the issue mentioned that both economic growth and GDP growth, surge in volume of exported goods, as well as gaz supplied to numerous localities were the concrete outcomes of the administrative-territorial reform. He concluded that the reform was a successful one and that it had a positive impact on the country development.
Opposition deputies viewed the revision of local public administration system as an anti-reform, they argued that the money spent on its enforcement were unjustly high as the reform failed to bring local government closer to people. In this respect, they cited many problems related to limiting the number of local officials, financial dependence of administrative-territorial units on central government and rayon authorities, politicization of administration structures, lack of material resources, etc.
In the time allotted for questions and answers deputies engaged in mutual criticism, with majority faction blaming opposition leaders for promoting their economic and financial interests, whereas opposition blaming ruling party of frauds and corruption. In addition, opposition once again called on information they had previously demanded from the Government to be finally made public.
During the plenary session a number of legal acts of major importance were examined, some of which shall be given a due consideration below.
I. Law on Establishing Insolvency Procedure for Financial Institutions
ADEPT Comment: The law passed by the Parliament provides some exemptions from the Law on Insolvency, thereby insolvency procedures against certain financial institutions started until February 15, 2002 shall be undertaken in compliance with the law in force at the time the procedures were started.
The reason for passing the law was the fact that throughout 1996- 2002 National Bank withdrew a number of licenses to financial institutions and appointed ex officio administratios to oversee liquidation procedures. Due to the fact that insolvency procedures continued even after the enforcement of the new Law on Insolvency it was necessary to provide for their settlement under the previous legal provisions.
Noteworthy, on November 14, 2001 Parliament passed the Law on Insolvency, thus abrogating the Law no. 786-XIII of March 26, 1996 on Bankruptcy and the Law on Restructuring Enterprises no. 958-XIII of July 19, 1996.
II. Law on Deducting the Amounts Wired to the Fund for Guaranteeing Bank Deposits
ADEPT Comment: The law provides that financial institutions that contribute to the Fund for guaranteeing bank deposits, shall be allowed to deduct the obligatory contributions set by the Law on Guaranteeing Natural Entities Bank Deposits in the Banking System.
On December 26, 2003 Parliament passed the Law on Guaranteeing Natural Entities' Bank Deposits in the Banking System aimed at guaranteeing bank deposits of natural entities in banks authorized by the National Bank of Moldova. Upon the enforcement of the law a Fund for Guaranteeing the Deposits in the Banking System was established as a legal entity. Banks authorized by the National Bank are obliged to pay fees to the fund.
III. Law on canceling the penalties and sanctions incurred but not paid by "Fabrica de brinzeturi din Leova"
ADEPT Comment: Parliament cancelled the penalties and sanctions due by the Leova Cheese Factory to the state social insurance budget, amounting to 1.2 million Lei. The state had to intervene as the company failed to pay back the credit, due to the fact that the major suppliers of raw material disappeared from the market.
IV. Draft law on the amendment of legal acts in the field of telecommunications
ADEPT Comment: The draft passed by the Parliament in the first reading provides for including a new article in the Code of Administrative Offence, namely on Using numbering resources without an authorizations or transferring those resources to other persons. The sanction proposed for such violations would represent a fine of up to 36 thousand Lei. In addition, National Agency for Regulations in Telecommunications and IT shall be responsible for applying those sanctions.
The amendment stems from the fact that numbering resources are in the exclusive property of the Republic of Moldova, and are subject to a special administration and assignment procedure. Under the law telephone numbers may not be used by legal entities at their own will, as this might incur damages to the state domestically and on international scale.
Already, there are cases of procedure violations, therefore it is recommended to complet the Code of Administrative Offence with a new Article 142/6 "Using numbering resources without an authorization or transferring numbering resources to other persons".