Monitoring→Public Institutions→Government

Reshuffles

The last two weeks were rich in reshuffles as Government was very much displeased with the activity of certain government officials. Felix Virlan was ousted from the position of Deputy Minister of Energetics, while Valeriu Munteanu from the position of Director of the Migration Department. Several others government officials were sanctioned: Feodosia Furculita, Deputy Minister of Finance; Sergiu Sainciuc, Deputy Minister of Labour and Social Security; Anatol Dubrovschi, Deputy Minister of Education. The first two were blamed for delaying the draft Government resolution on salary supplements to the people of culture and sports; whereas the latter for the failure to enforce in due time Government motion on transferring sport schools into the property of the Department of Youth and Sports, as well as for “unreasonably lowering the amount allotted for the activity of the Olympia Sports Club”.

Decisions

• On June 16 at the recommendation of the President, Government accepted to allot additional funds to the Central Electoral Commission worth 878,459 Lei. The amount, which in fact is much lower than the one requested by the Commission in the first place (1,775,512 lei), shall be used for “technical and material needs as well as to hire additional staff”.

• Via a Government motion an Appendix to a previous decision of January 2004 was passed. The decision referred to the budget breakdown for official delegations thereby 320 lei per person are to be spent for a reception dinner, 380 lei for per diem, between 500 and 3,000 for souvenirs, 320 for visiting theatres and concert halls, 600 lei for the flowers at the greeting ceremony. In addition 5,000 lei are allotted for staples for the delegation, 3,500 for producing the badges and 1,500 for flower decorations in the meeting rooms.

• Following the initiative to amend the Law on Individual Privatization Plan of enterprises in the energy sector, Government decided to decrease the number of shares for sale of North Distribution Networks from 75% to 50% plus one. While taking the decision Government considered the experience of privatising Chisinau, Centre and South Electricity Distribution Networks, which in the eyes of the Government was “inefficient” as the state was deprived of the opportunity to control them. This is very illustrative of the authorities’ reticence towards Spanish Union Fenosa and this despite the rhetoric of supporting and privileged treatment of the investors in Moldova.
  In fact this regulation might scare away some potential investors interested to buy large amounts of shares, at the same time some small investors would have a chance to bid due to the lower transaction price as a result of the smaller amount of shares available for sale. Another thing is that Government lowered the indicators of electricity generating capacity from 500MW to 200MW and it gave up the requirement for the potential investors to have experience in electricity distribution.

• Government also approved a draft law on the status of the military. The draft outlines the rights and obligations of the military, including benefits they would enjoy. A new element is that the draft acknowledges the equality of men and women in military service, which is an illustration of gender mainstreaming in Moldova.

• On June 23 Government entrusted the new Director General of the State Information Agency “Moldpres”, Valeriu Renita, to take the necessary measures to streamline the organizational structure of the Agency and submit it to the Government within 10 days. The relevant Resolution also provides for transferring “Casa Presei” conference hall into the property of the Agency as well as allocation by the Government of 890 thousand lei to cover for the expenses of publishing and distributing additional issues of Official Monitor throughout 2002–2003.

• Government decided on the ratification of the Agreement signed on May 12 with WB on additional 5 million USD for continuing phase 1 of the Rural Investment and Services until 2005. The first phase was conducted in 2002 with 10,5 million USD allocated for businesses in rural area. 725 credits worth 126,6 million Lei were granted with the support of WB and other international donors which helped initiating about 900 businesses. The 5 million would allow another 300 businesses to be opened.

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