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Activity of the Parliament on November 3–16, 2003

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November 3–6, 2003

Besides Council of Europe Ministerial Committee reunion in Chisinau, which was a formal but rather prestigious event for Moldova, protest rallies staged by the opposition in front of the Russian Federation Embassy in Chisinau demanding evacuation of the Russian ammunitions from the left of Dniester — took the center stage last week. The on-going protest rallies determined Russian Foreign Ministry release a statement, which might be interpreted quite differently.

On the one hand, the negative reaction of the Russian Foreign Ministry to the protest rallies and their slogans might be well understood. On the other hand, opposition accused Russian Foreign Ministry that in its statement they were giving “instructions” on the way of handling protest rallies. This refers in particular to an excerpt of the Statement reading that Russian authorities were deeply concerned by the fact, that despite numerous official appeals, Moldovan Ministry of Foreign Affairs had failed to take measures to protect Russian diplomats.

One of the issues debated during the Parliament sessions was the draft state budget for 2004, which was passed in two readings after long debates. Opposition tried to prove that the budget figures were not realistic and insufficient for attaining economic, social, cultural objectives, etc. Majority faction in Parliament and the Government justified both the much-contested figures as well as the forecasts for next year economic growth.

Besides the draft Law on the State Budget, the Parliament examined a series of less important legal acts.

Law on Sample-Statute of the Village and City

The law is part of the package of laws regulating the activity of local public administration created as a result of May 2003 local elections and replacing the old law on the sample-statute of the village and city passed back in 1995.

Draft law on the State Budget for Year 2004

After many debates the Parliament finally approved the state budget in two readings, thus approving the concept and its main figures, as follows:

It is worth mentioning that for the first time in the last couple of years the Government came up with a budget proficit, needless to say, though, that it is not realistic, as the difference between the revenues and expenses — 340,000 MDL — is to be used to service foreign debts.

It is worth mentioning that Parliament passed a law amending the fiscal policy for the next year, thereby rejecting Government initiative to increase the land tax and cancel VAT reductions on the import of seeds, agricultural machinery and raw materials for drugs production. The Government thereby hoped to gain 300,000 MDL. However, the move met severe criticism from farmers and could have led to wider protest rallies, which obviously the incumbent ruling party could not afford a year before elections.

Draft law on establishing administrative sanctions for illegal actions of state representatives in economic units

The draft adopted by the Parliament in the first reading completes Article 17423 with a new administrative sanction ranging from 200 to 300 minimal salaries for the following actions or offences:

If those actions are take in order to gain a profit, the sanctions would range from 2,000 to 3,000 minimal salaries. However, the draft does not clarify on whether the person perpetrating the said wrongdoings shall be able to preserve his/her position in the company, nor in the public service. This legislative gap might be addressed during the second reading of the draft law, however for this to happen deputies would have to come up with already ready amendments.

Draft law on the modification of the Law on Compulsory Medical Insurance

The draft defines the subjects due to pay compulsory medical insurance as of July 1, 2003:

Noteworthy compulsory medical insurance has been enforced in Hincesti since July 1, 2003 and is recommended for enforcement in the entire country. This is already provided for in the Law on State Budget for Year 2004 stipulating the collection of more than 500,000,000 MDL from the compulsory medical insurance. Needless to say, international organizations monitoring the implementation of compulsory medical insurance in Hincesti pointed to certain drawbacks in the even application of the law, which should be addressed prior to the enforcement of the system throughout the entire country. So far, Government did no commented on this.

Draft law on exemption from VAT devices for the assembly of glass heating furnace

The draft adopted by the Parliament in the first reading exempts from VAT the devices necessary for assembling and reassembling glass furnaces in the property of domestic glass companies.

The fact that the draft refers exclusively to the state companies lead to severe criticism from foreign investors who own similar companies, but who have to pay all the taxes on furnace assembly.

One of the reasons for the adoption of the law was the fact that domestic factories were not modernized for a long time, whereas foreign investors pledged to renovate the factories immediately after their privatization in 1998–2000. They failed to do so and now are modernizing the factories without enjoying any insensitives.

November 10–14, 2003

During the aforesaid period, Parliament examined a string of legal acts drawing public attention. One of the said documents, is the draft law on the modification of the Law on National Public Audio-visual Institution, which has previously spurred debates and protests among specialised organisations, and even the intervention of the Council of Europe. The latter provided an expertise of the draft, as well as mediated the talks on reaching a mutually acceptable compromise.

Also, Parliament passed a string of legal acts on the functioning of local government, such as the Frame-regulation on the functioning of local and rayon councils.

Law on Approval of the Frame-Regulation on establishing and operation of local and rayon councils

We have referred in detail to the draft in our Commentary of October 20–24. However, the following amendments have been operated in the final draft:

  1. Procedure of convening the first council session. It was decided that the first session shall be considered deliberative provided no less than 2/3 of elected councillors are in attendance, otherwise another session shall be convened 3 days later. If the quorum is not secured at the second attempt, then at least ? of the elected councillors should be in attendance at the third session, otherwise the council shall be deemed dissolved.
  2. Procedure of establishing council factions — made up of at least 3 councillors.
  3. Procedure of electing Rayon Deputy Chair (and Deputy Chair of the locality) — at the proposition of the Rayon Chair (Mayor of locality), after prior consultation with the factions.
  4. Language used during the sessions and for drawing up council documents. It was decided that the sessions shall be conducted in Moldovan language or other language used on the soil of the relevant administrative-territorial unit. Council shall write its entire documents in Moldova, which are to be translated in Russian whenever it is deemed necessary. In localities largely populated by other ethnicity, the documents shall be drawn in the language spoken by the majority population, and shall be translated into the state language.

Law on the Status of Foreign Military Forces

We have referred in detail to the draft in our Commentary of July 1–4, 2003. However, the following amendments have been operated in the final draft:

1. Restrictions on the transportation: It was decided that military vehicles might cross the state border on public roads only if they comply with the international traffic requirements and if drivers posses a national or international driving license in line with international rules in the field.

2. Taxation of the foreign military: It was decided that:

Law on Modification and Completion on the Law on Public Teleradio-Moldova Institution

The initial draft proposed a string of structural and technical changes, liquidation of the Teleradio-Moldova State Company, lay off of entire staff and recruitment of a new one by the new structure, i.e. National Audio-visual Public Institution Teleradio-Moldova. The grounds for such changes are that at the moment there are two structures — State Company that has not ceased its activity; and the public company that has been established (only its leadership being designating but no funds nor patrimony was allocated).

The draft has garnered a rich harvest of criticism from opposition and non-governmental sector working in the field. Therefore the draft was submitted for the expertise of the Council of Europe, which initially evaluated it in negative terms. In order to reach a compromise a group made up of representatives of all parliament factions flew to Strasbourg. Together with Council of Europe experts they discussed and drafted the final wording of the draft on reorganisation of the Teleradio-Moldova Company.

The draft passed by the Parliament provides that Observer Council will endorse the membership of the Company Board of Directors, which in its turn will submit for the approval of the Observer Council the company bylaws, work plan and its regulation.

The Company Director shall submit for Board of Director’s approval the personnel record. Observer Council shall establish a Tender Commission to recruit in a transparent manner the new staff.

Government undertakes to inventory the Company assets and to transfer them into the property of the new Company. Afterwards it shall liquidate the State Company and come up with a pay off procedure.

So far it is not clear what would be the stance of the Company employees, however a lot of problems and conflicts are likely to surface upon the enforcement of the Law. ADEPT will keep a close eye on the developments.

Law on the Modification and Completion of Legal Acts related to Water

The law operates a string of modifications to the Water Code. In particular a number of new notions were added, such as aquatic object, fish breeding aquatic objects, beneficiary of the aqua resources, aqua resources protection, aqua resources usage, etc.

Also new provisions have been added referring to the ownership of aqua resources. Thereby, aqua objects of the Republic of Moldova may be either in public property of the state or administrative-territorial units, or in the private property of natural or legal entities.

Aqua objects in public property may be given into exclusive concession. Water resources shall be given into concession by the Government or local government.

A series of provisions refer to the adherent land. It was also established that the following are under state property: aqua objects located in two or more administrative territorial units, subterraneous waters; aqua objects located in a single administrative-territorial unit that are necessary for the water supply, energy supply, transportation, telecommunication, meteorology or other state system; border aqua objects; aqua objects — resorts under state protection; resorts of national importance; aqua resource granted by the Government for fish breeding.

Moreover, the use of aqua resources may be limited or prohibited partially or totally in view of protecting state security, public health, environment, cultural and historic heritage according to the law.

Noteworthy, this issue has been debated for a long time and resulted in a number of litigations. State interference has led to Government resolutions being appealed in Constitutional Court. The situation worsened considerably after the local elections when newly elected bodies attempted to redistribute the fish breeding basins in view of getting revenues for the community and for them personally.

Law on Modification of Legal Acts on the Refugees Entry and Exit

The law regulates the types of documents and issuance procedure: travel documents, ID for refugees, residence permit. The aforesaid documents shall be drawn in three languages — Moldovan, Russian, and English.

Draft law on modification of the Code of Administrative Offence

The draft provides for sanctions to be imposed for unauthorised constructions and unauthorised changes to the existing constructions, ranging from 200 to 1,000 minimal salaries. The draft also provides that if the constructions or changes were not authorised but correspond to the existing technical and urban requirements then they might be legalised after all the documentation is settled and fines paid. Noteworthy, the current Code of Offences was passed in summer 2001, however it was poorly enforced. That is why certain clarifications to the law were necessary.

October 20 – November 2, 2003 November 17–30, 2003