The Promo-LEX Association has launched the Report on Monitoring the Financing of Political Parties in Semester I, 2020. The report contains findings made by Promo-LEX monitors following the civic monitoring of political party funding.
Financial reporting of political parties to the CEC in semester I, 2020
Five political parties (the POM, PSD, PUN, MSPRRM, PRM) submitted the semi-annual reports to the CEC with a delay, while the other nine parties (the MSPSN, PNOI, NOI, PUCM, PMUEM, PPM, PReg, PR, PSP) did not submit any reports as of August 26 this year. Thus, it can be concluded that 81% of the parties concerned have complied with the reporting standards in semester I, 2020.
State budget subsidies are the main source of political party revenues
In the first semester of 2020, 24 out of 39 parties concerned indicated revenues in the amount of 22,287,418 lei and an initial balance of 49,485,626 lei as of January 1 this year. The reported expenses amounted to 24,270,754 lei, the final balance amounting to 47,502,290 lei as of June 30, 2020. The other 15 parties that submitted financial reports did not indicate any revenues or expenses.
Subsidies from the state budget are the main source of income for most of political parties (74%). Thus, 24 political parties received subsidies in the amount of 16,415,065 lei.
Campaigning through charity amidst the pandemic
Activities of political parties in the first semester of 2020 have been marked by the COVID-19 pandemic, therefore, the number of large-scale public events and manifestations was reduced, and most of campaigning activities were directly related to charity actions in the pandemic context.
In this context, 19 political parties carried out 1,357 promotional activities, advertising events and political gatherings, donations of equipment in the pandemic context, door-to-door activities, etc. For comparison, in the same period of 2019, Promo-LEX monitors reported 1,518 campaigning activities and events carried out by 14 political parties.
Public money used in political campaigning
According to the monitors, in at least 9 cases, the Political Party of SOR (PPS) took credit for the inauguration of street lighting and road rehabilitation projects, carried out at public expense. Promo-LEX estimated expenses of at least 24,339,611 lei for the respective projects. At the same time, the PPS declares that it did not incur any expenses for the above projects. These estimates are solely for public information and have not been taken into account as unreported expenses.
Campaigning activities carried out under the auspices of an unregistered entity
Five other political parties (Liberal Party, Romanian People’s Party, Save the Bessarabia Union, Democracy at Home and National Liberal Party) under the aegis and symbolism of the Political Movement “UNIREA” (Unification)(MPU), carried out political campaigning activities. Hypothetically, the MPU incurred certain expenses. However, according to our data, there is no information on the financial activity of the MPU in the first semester of 2020.
Charity or image transfer?
Charity foundations carried out numerous activities in the first semester of 2020. Thus, “Din Suflet” Charity Foundation, associated with the PSRM, along with “For Orhei” Association, associated with the PPS and “Renato Usatii” Foundation associated with the PN, carried out indirect campaigning activities in favor of the associated parties. The estimated expenses for these activities are at least 1,568,678 lei, money not reported by the parties.
Unreported expenses
The Promo-LEX Association found that 18 political parties failed to report expenses amounting to 5,228,114 lei. On the other hand, expenses amounting to 696,799 lei were estimated in the case of the PRO-MOLDOVA Group (prior to its registration as a political party).
Other expenses and staff costs were the categories with the highest estimates. It should be noted that in the context of the pandemic, for the first time ever, the expenses reported to the CEC for public events and manifestations indicate values higher than the estimates or, if there are discrepancies, they seem to be lower than in previous years.
The full report can be found here.
* The report on Monitoring the financing of political parties in semester I, 2020 is prepared by the Promo-LEX Association under the “Democracy, Transparency and Accountability” Program funded by the United States Agency for International Development (USAID). The views expressed in the Report belong to the authors and do not necessarily reflect the views of the funders.
If there are discrepancies between the text in Romanian and its translation into another language, the provisions established by the text in Romanian shall prevail.
For further information, please contact:
Inga Stegarescu, Press Officer of the Promo-LEX Association;
GSM: 069 26 96 84;
E-mail: [email protected]