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Activity of the Government on February 23 – March 14, 2004

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Reshuffles

In the aftermath of the bread price-overrating scandal, at the order of President Voronin Government ousted Alexei Roibu, Head of the Centre on Fighting Economic Crime and Corruption and Gheorghe Lungu, Deputy Chief of the Agriculture and Environment Department of the State Chancellery.

Decisions

Government established a task force within the Ministry of Agriculture and Food Industry to be headed by Minister Dmitri Todoroglo entrusted to work out measures to “supply Republic of Moldova with bread”. Under the Government ruling the “task force shall identify 2–3 domestic companies able to import in March 25 thousand tones of grain at the lowest prices, so as to ensure food safety of the state”.

By the end of the month the said companies are to be selected via a tender. They would have to import 25 thousand tones to be sold on the domestic market. The revenues from the sale of imported grain shall be used to replenish state reserves.

Ministry of Economy has already researched the grain prices and terms of delivery on the international market. The research indicates that Canada sells the grain under the most favourable terms.

As it stands now, Republic of Moldova grain reserves reaches 30,000 tones, amount sufficient until April 15. The amount of grain harvest in 2003 was ten times less over 2002, i.e. only 101,000 tones.

State officials and high rank officials would no longer be obliged to disclose all their income, assets, including that of their families and real estate in their income declarations. As of now, they would have to file a declaration on their net income for the last year. Government endorsed a draft law in this respect on modification of the Law on disclosing and control over the income and assets of state officials, judges, prosecutors, public officers and certain high rank officials.

Another Governmental motion extended until January 1, 2005 the deadline for enforcing Government ruling on “customs declaration to be filled by businesses and manufacturers from the Eastern rayons of the Republic of Moldova on goods that entered or exited the state customs area”. The resolution is aimed at fighting smuggling, preventing violation of customs requirements as well as at overseeing economic exchanges across the Eastern border.

Government also approved the new membership of the Economic Council under the auspices of Prime Minister. The consultative body includes 25 persons representing private businesses, financial and banking institutions, local public administration, Chamber of Industry and Commerce and association of agricultural producers. Alexandru Sirbu, Chair of the Moldovan-American joint venture “Sun Communications” (former “Sun-TV”) was appointed Chair of the Council, whereas Iacob Tihman, Director of “Efes Vitanta Moldova Brewery” and Victor Hvorostovschi, President of FinComBank were appointed as Deputy Chairs. The council also includes such figures as Vasile Chirtoca, President of “DAAC-Hermes”, Sergiu Boret, Director of the “Acorex Wein Holding” Joint venture, Victor Turcanu, President of Victoriabank, and Vasile Mirzenco, President of National Farmers Federation.

On March 10 Government passed another resolution on indemnifying bank deposits at the Banca de Economii (BE) of the citizens born before 1930. Under to BE estimates, 44.2 thousand peopled filled applications to receive their indemnity between October 2003 and January 2004. An estimated total of 28.2 million Lei would be needed to cover for indemnities. Noteworthy 48 million Lei are allocated in this respect in the state budget for year 2004.