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Activity of the Parliament on April 22 – May 12, 2002

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April 22–26, 2002

Last week public attention was focussed on Strasbourg, where Council of Europe Parliamentary Assembly debated on the report “Functioning of Democratic Institutions in the Republic of Moldova”, presented by the rapporteurs on our country after their recent visit to our country. The Resolution was much debated both within the special commission as well as during plenary session.

It is worth mentioning that the representatives of the parliament majority raised the issues of bringing our country’s legislation in accordance with the international standards. Thus, the Council of Europe was briefed on the lack of inconsistency between domestic legislation and international norms and that it is not the Communists’ 1 year activity to be blamed but rather parliamentary activity since 1991 to nowadays. To cite only the few, Law on Political Parties, Law on the Public Reunions, Law on Deputy Status, Law on Cults, Law on Audiovisual, Regulation on Parliament Activity, and Electoral Code weren’t adopted by Communists. All political parties in power from 1991 to 2001 adopted them. Once in power they tried to consolidate their positions, but now the results of their legislative activity have turned as a boomerang against them.

That is why the leader of the Communist faction was right when saying that it wasn’t his faction which passed such laws. On the contrary they are ready to modify the laws so as to meet the democratic standards, a proof to their intentions is the adoption of the Code of Civil Procedure and Penal Code, on whose adoption Council of Europe insisted so much.

During this time period only one plenary session of the Parliament was held, thought a series of important legislative acts had been adopted.

Legislative acts adopted in the final reading

Law on Production Cooperatives

During the second reading of the draft law, the Parliament Commissions read the numerous amendments to the draft, which were adopted by the deputies. It is worth mentioning the following aspects:

Note: For further information see the Legislative Commentary, March 25–29, 2002.
Law on modification and completion of the Real Estate Code

After the adoption of the draft in the first reading, it was submitted for the expertise of the World Bank. Then the Bank’s recommendations have been incorporated in the draft. And this because the modification and completion of the Real Estate Code was one of the conditions set forth by the World Bank for resuming financial aid to the Republic of Moldova.

Note: For further information see the Legislative Commentary, March 25–29, 2002.
Law on the Modification of the Customs Code

The law provides that duty-free shops could operate exclusively in the international airports and on board of airplanes. The goods will be sold in foreign currency only to the passengers who passed the customs control.

Law on the ratification of the loan contract between KFW Germany, and S.A. “Sudzuker-Moldova”

The law ratifies a loan contract worth 10 million DM for establishing a network of technical service infrastructure. Such units will be established in 5 localities, i.e. Drochia, Alexandreni, Donduseni, Falesti, Glodeni Sugar Factories. The loan is offered for a 40 years period, with a 10-year grace period and an interest rate of 0,75% per year. S.A. “Sudzuker-Moldova” will have to pay back the credit to the Ministry of Finance within 10 years, with a 3-year grace period.

Law on the ratification of the protocols to the Convention of 1979 on the cross-border atmosphere pollution on long distances

The law ratifies the Protocol on persistent organic polluters and the Protocol on the heavy metals. Ministry on Environment, Constructions and Territory Development was entrusted to observe the enforcement of the said protocols.

Legal acts adopted in the first (not-final) reading

Draft law on canceling the penalties to the companies that paid the arrears to the social security budget

The relevant law cancels the penalties calculated in compliance with Article 24 of the Law on State Budget to more than 100 companies. The total amount of penalties exceeds 8 million Lei, whereas the amount paid by the relevant companies to the state budget reaches 39 million Lei.

Draft law on the modification of the Law on the Normative Price of Land and Sale-Purchase Procedure

Under the law, funds from the sale of estates in the property of administrative-territorial units will remain in the respective unit.

In addition, it is recommended to establish only the minimum ceiling for the annual lease fee for the land in public property — 2% of the normative price on land. It is suggested that the lease quota be established by local public administration according to the market value and tendencies. If the latter provision were adopted, abuses and violations would not be excluded: different quota may be established to different entrepreneurs for similar estates and of a similar quality.

Parliament adopted in the first reading a series of draft laws envisaging the modification of legal acts regulating pharmaceutical activity and medicines

The draft includes provisions on:

April 29 — May 8, 2002

During the said period the Parliament focussed on the priorities set by the Government. The Parliament examined the draft laws, which were set by the international organizations as a condition for resuming funding and even adopted some of them in the final reading.

And this because the governing is under the pressure of foreign debts, which have reached the date of maturity this year. Another cause is the commitment of the incumbent governing party to meet its promises, namely to ensure social security of the population and to bring down the impoverishment of the population. Given the above said its crucial to resume the foreign aid, as the IMF and WB money might help pay pensions and salaries, which were increased by 20% as of May 1, 2002. Although left wing forces as a rule enjoy the support of the trade unions, this is not the case of the incumbent governing. Moldovan trade unions have threatened the Government to hold general strikes if it fails to increase the salaries. Under the circumstances the Government has to find additionally several hundreds of millions Lei. This further worsens the situation of the incumbent governing, especially given the budgetary deficit and the failure to receive revenues from privatization.

Despite the Easter and official (May 1 and 9) holidays the Parliament managed to examine and adopt a series of important laws.

Legislative acts adopted in the final reading

Law on Biological Security

The law had been adopted at the end of 2001, but the President of the country refused to promulgate it and submitted a series of recommendations regarding the basic notions and principles. Specifically the President insisted on the inclusion of a provision prohibiting human cloning, as well as cloning of other organisms.

In addition, the President recommended the law to include the recommendations of the European Ordinance 2001/18.

Law on canceling penalties accrued by some economic enterprises that paid the arrears to the state social security budget

For further details see the Legislative Commentary of April 22–26, 2002.

Law on the modification of the Law on Tobacco and Law on Winery

The modifications exclude the provisions regarding state support to the relevant industries via special funds set within the Ministry of Agriculture and Processing Industry.Representatives of the World Bank insisted on the modifications as one of the conditions for the SAC-III credit.

Law on Completion of the Fiscal Code

The law exempts from VAT tax the assets transferred by the economic units to the registered capital. This modification is also one of the conditions set forth by the World Bank in view of SAC-III credit.

Law on modification of several legal acts related to local public finances administering

The law obliges local public administration bodies to use special destination transfers from the state budget exclusively for paying the salaries to public employees and social security taxes.

Previously, several violations in administering financial resources received from the state budget have been registered. This was one of the reasons for modification of the Law on local public finances and for transferring the responsibility of administering the finances from the county councils to prefectures.

Law on modification of the Law on Licensing

Under the modifications, the telecommunication market will be liberalized by December 31, 2003, whereas wire telephone services will be provided in all the regions of the country except for Chisinau Municipality and county centers. The latter was so far an exclusive prerogative of national operator S.A. “Moldtelecom”.

Liberalization of the telecommunication market was also one of the conditions for resuming crediting the Republic of Moldova, however the Government is not hurrying to meet the requirement as the public auction of S.A. “Moldtelecom” is scheduled for this year. Obviously the price for a monopolist operator will be higher than for the same operator when it has several competitors.

Resolutions on appointments and dismissals

The Parliament approved several resolutions, as follows:

Legal acts adopted in the first (not-final) reading

Law on the enforcement procedure of the Law on Administrative-Territorial Organizations of the Republic of Moldova and the Law on Local Public Administration

The draft provides that the said laws will be enforced after new administrative territorial units are formed and local public administration bodies are elected. Until then the provisions of the old laws shall be applied.

Thus the Parliament is trying to solve the problem produced by the Constitutional Court ruling recognizing as constitutional the new administrative-territorial division of the country, but outlawing the mechanisms of local public administration election and functioning.

Noteworthy, the relevant law was on the list of recommendations made by the Council of Europe in view of overcoming the political crisis.

Law on the modification and completion of the Law on the Court of Accounts

The said law is also part of the conditions set forth by international organizations for resuming crediting the Republic of Moldova. The modifications refer to:

Law on the modification of the Law on the Customs Fee

The relevant modification reduces the cost of customs procedures from 0.25% to 0,15%.

Law on the modification and completion of the Law on Telecommunication

The modifications establish the term for liberalizing the IP-telephony services currently provided exclusively by the S.A. “Moldtelecom”. The term established is December 31, 2003.

The issue of liberalizing IP-telephony triggered numerous protests of the operators who were prohibited to provide such kind of services. International financial institutions also insist on liberalizing the IP market.

Law on the modification of several legal acts on cash payments

The modification recommends increasing the maximum amount of payments allowed in cash from 5,000 to 10,000 Lei per month.

Law on the completion of the Law on Customs Fee

The completion recommends exempting the goods imported for the duty-free sale from VAT tax.

April 8–21, 2002 May 27 – June 9, 2002