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Activity of the Government on August 1–31, 2007

Appointments. Reshuffles

The Government has performed some reshuffles:

Decisions

Decision on implementation of the national strategy on prevention and combat of corruption in the first half of 2007. The Government notes that specialised central bodies of public administration have taken a series of measures to efficiently implement the action plan; 9 out of 11 planned actions have been executed, one action is being executed and another one was not executed, while 55 actions are permanently being executed. The executive states that the anti-corruption activity focussed on revealing and investigating corruption schemes among functionaries, holding campaigns aimed at raising the awareness of society against this phenomenon and cultivating intolerance towards corruption, ensuring transparency of activities in public sector. The GRECO recommendations addressed to the Republic of Moldova accordingly to the Assessment Cycle 2 are being implemented. The Government has also identified the following shortcomings:

NOTE: It is unanimously recognised that one of the most efficient mechanisms of fighting and preventing corruption is the declaration and control of incomes and assets. Although Law No 1264-XV of 19.07.2002 provides for the compulsory annual publication of such statements by the President of Moldova, MPs, members of the Government, Chair of Constitutional Court, Chair of Supreme Court of Justice, General Prosecutor, Chair of Court of Accounts, Governor of National Bank of Moldova, Director of Information and Security Service, mayors of towns, villages (communes) and presidents of districts councils, in 2007 this was not done. The issue of publication and authenticity of data entered into income and assets statements is periodically discussed by the society and in the independent media (e.g. see article National particularities of declaring incomes and estate), but the authorities have failed to come forward with any adequate or efficient normative-legislative or procedural amendments. This failure has significantly diminished the credibility of governance and has thrown doubts on the decisive character of efforts aimed at fighting corruption and the illicit earnings of Moldovan officials.

Decision on anti-crime activity of the Interior Ministry in 2006 and in the first half of 2007. The Government notes that the Interior Ministry (IM) has worked hard to accomplish all objectives stipulated by national programmes and plans on combating corruption and ensuring the legal order. Its efforts helped preserving the crime reduction trend, a fact confirmed by decline of crime rate in Moldova by 11.3 percent in 2006, compared with 2005, and by 12.1 percent in the first half of 2007, in comparison with the similar period of 2006. At the same time, there are some shortcomings:

Decision on suspension of access to unused funds of the 2007 state budget. The cabinet of ministers has studied the execution of the basic component of the state budget and found out a low execution of expenses (88 percent, compared with expenditures planned for the period concerned), this being a proof of the inefficient management of available public funds. In order to enhance the responsibility of ministers and heads of other central administrative authorities and public institutions financed from the state budget and given the need of finding public funds to compensate the effects of the 2007 drought, the Government ordered the Ministry of Finance to suspend the access to funds from the basic component of the state budget unused by budget executors, as of July 31, 2007, except for the means for capital investments and capital repairs. The access to these funds will be allowed under an order by prime minister on basis of argued requests by ministries and other central administrative authorities.

Government Decisions:

Decision on transfer of the function of beneficiary of the high-pressure gas pipe Tocuz-Cainari-Mereni. The Government considered that the Chisinau City Hall did not satisfactorily exercise the function of beneficiary while projecting and building the high-pressure gas pipe Tocuz-Cainari-Mereni and delayed the signing of building execution acts. For this reason, the function of beneficiary of this gas pipe was transferred to the Ministry of Industry and Infrastructure, while the Ministry of Finance will ensure the full financing of works in the due term from funds stipulated by the 2007 state budget law. The City Hall proposed to exercise the function of beneficiary of the gas pipe in late 2006, with the Government giving light to this request by issuing an order.

Decision approving the draft law on modification and completion of the law on petitioning. The draft law stipulates the possibility of sending an electronic petition with digital signature.

Decisions approving some programmes, concepts, strategies:

Sittings. Decisions. Statements

Conditions of activity for Moldovan markets

The executive is concerned to create good conditions of work for Moldovan markets and to exclude intermediaries from producers’ trading of goods. A working sitting chaired by prime minister has discussed these problems, with minister of economy and commerce saying that working groups have been created accordingly to an indication and they studied the situation in the area. It was established that 40 legal and approximately 20 illegal markets are working in Chisinau. Monitoring the situation, experts worked out a set of proposals seeking the modification of the law on internal trade, which will be raised for enforcement. The State Tax Inspectorate chief said that sales of wholesale depots have grown two-fold in one month after fiscal stations have been installed to monitor the activity of these facilities, and this is a proof of double bookkeeping of wholesale markets. Prime minister instructed the Ministry of Economy and Commerce to create an adequate normative base for a good functioning of markets, while the Ministry of Local Public Administration will continue cooperating with local public authorities for functioning of fairs and will work out an action plan on opening of at least a fair in every district, which will work until November.

Concerns with construction of the Cahul — Giurgiulesti railroad

The Government has raised concern with the slow projecting and construction of the Cahul-Giurgiulesti railway. The premier noted that the project is developing very slowly, raising concern with inefficient activities of some public bodies in this project. He ordered the Ministry of Finance to allocate the funds needed for building works and asked Minister of Transportation and Road Management Vasile Ursu to coordinate the implementation of this project.

Remuneration of state representatives in economic units

State representatives in management boards of enterprises will not be additionally paid any longer, with Premier Vasile Tarlev giving an order in this respect at an August 15 governmental sitting. The prime minister gave this order after the State Tax Inspectorate (STI) chief has reported the financial results of state enterprises and societies for 2006. According to the report, incomes worth 216.3 million lei from the 2006 activity of 276 enterprises (172 state-owned companies and 104 joint stock societies) were foreseen in the 2007 state budget. In reality, the budget was completed with 122 million lei, of which 100 million lei in dividends of joint stock societies, while state enterprises transferred only 21.9 million lei of their net profit. Tarlev demanded a more complex report on efficiency of functionaries who participated in corporate management of societies last year and asked members of management boards of joint stock societies, managers of state enterprises to protect the economic interests of the state and to administrate the public property as efficiently as possible, on basis of their salaries, without claiming special supplements from funds of enterprises.

Reporting to international organisations

The Ministry of Foreign Affairs and European Integration has hosted the third meeting of the national commission for the elaboration of initial and periodical reports on implementation of international conventions signed by Moldova. The national commission has studied the current situation regarding the presentation of periodical reports at national level and approved the second Periodical Report of Moldova regarding the implementation of the U.N. International Convention on the Rights of the Child with certain amendments. It also debated the fulfilment of recommendations by the specialised U.N. Committee regarding Moldova’s report on implementation of provisions of the U.N. International Convention on the Elimination of All Forms of Discrimination against Women at national level and the stage of elaboration of the next national report on respect for the European Social Chart. Members of the commission took notice of the actions launched to start the second Country Periodical Report on implementation of the U.N. International Covenant on Economic, Social and Cultural Rights, which will be delivered to the specialised U.N. Committee in June 2008, as well as of the elaboration of the next report of Moldova concerning respect for the Framework Convention of the Council of Europe for the Protection of National Minorities. National commission chairman Andrei Stratan tackled modalities to optimise Moldova’s reporting to diverse international and regional structures, seeking an active participation of the Ministry of Justice in examination of preliminary versions of draft national periodical reports.

Sittings of the Commission for Emergencies

The prime minister has chaired a sitting of the Republican Commission for Emergencies, which focussed on situation faced by agriculture after the 2007 drought. It was assessed after heads of working groups created before this commission reported the situation in agriculture that the food security of Moldova is stable and competent bodies seriously monitor it. Vasile Tarlev ordered a severe control on bread prices, noting that a groundless price rise is inadmissible. Also, the prime minister demanded an in-depth evaluation of the structure of dairy prices, noting that the working group in charge with this task has inefficiently acted, while arguments for reasons of higher prices are insufficient. The commission described the activity of the republican staff for conduct of agricultural works as unsatisfactory, as the soil preparation works are slowly developing. The administrations of the Ministry of Agriculture and Food Industry and Moldova-Vin Agency were warned over the necessity of “ensuring at a high level the harvesting and acquisition of grapes,” while competent institutions will have to intervene operatively in order to ensure the payment of debts of wine enterprises toward producers for the raw material purchased last year.

July 17–31, 2007 September 1–15, 2007