Financing to Political Parties from Private and Budget Funds in 2010 by CDT Crna Gora

Financing to Political Parties from Private and Budget Funds in 2010

The present Publication is a part of the â&#x20AC;&#x153;Money and Politicsâ&#x20AC;? Project , funded by:

Podgorica, June 2011

Financing to Political Parties from Private and Budget Funds in 2010

IMPRESSUM PUBLICATION Financing to Political Parties from Private and Budget Funds in 2010 PUBLISHER Center for Democratic Transition (CDT) VII Omladinske bb 81 000 Podgorica, Montenegro Tel: +382 20 207 070, 207 071 Tel/Fax: +382 20 207 072 Email: cdtmn@tcom.me www.cdtmn.org FOR THE PUBLISHER Dragan Koprivica PROJECT AUTHORS Dragan Koprivica and Milica Kovačević PROJECT COORDINATOR Milivoje Krivokapić RESEARCHERS Biljana Pejović, Milana Čabarkapa and Milivoje Krivokapić TRANSLATOR Ana Knežević PREPRESS AND GRAPHIC DESIGN Blažo Crvenica and Bojan Tešić PRINTING AP Print, Podgorica CIRCULATION 800

Citing and using the material and information contained therein for notforprofit publications or in public media, while for the purpose of informing the citizens, as well as the use thereof for other noncommercial purposes, shall be allowed upon a mandatory stating the source thereof and the copyright owner. The use of the material for any other purpose shall not be allowed without a previous approval by the copyright owner (Center for Democratic Transition). CDT shall not be held liable for any subsequent interpretation of the information published herein.

Table of contents

TABLE OF CONTENTS 1. Introduction ............................................................................................................4 2. Financing to Parties from the Private Funds ............................................6 3. Montenegro ..........................................................................................................10 4. Andrijevica Municipality ................................................................................11 5. Bar Municipality ................................................................................................13 6. Berane Municipality ..........................................................................................15 7. Bijelo Polje Municipality..................................................................................17 8. Budva Municipality............................................................................................19 9. Cetinje, Historical Capital................................................................................21 10. Danilovgrad Municipality ............................................................................24 11. Herceg Novi Municipality ............................................................................26 12. Kolašin Municipality ......................................................................................27 13. Kotor Municipality ..........................................................................................29 14. Mojkovac Municipality ..................................................................................31 15. Nikšić Municipality ........................................................................................32 16. Plav Municipality ............................................................................................33 17. Plužine Municipality ......................................................................................35 18. Pljevlja Municipality ......................................................................................37 19. Podgorica, Administrative Capital ............................................................39 20. Rožaje Municipality ........................................................................................44 21. Šavnik Municipality ........................................................................................46 22. Tivat Municipality............................................................................................48 23. Ulcinj Municipality ..........................................................................................49 24. Žabljak Municipality ......................................................................................51 25. Analysis of Legislative Framework ..........................................................53 26. Annexes................................................................................................................57

Financing to Political Parties from Private and Budget Funds in 2010

Introduction

Dear readers, This is the publication titled “Financing of Political Parties from Budget and Private Sources in 2010”, which is the outcome of the research done within the “Money and Politics” Project implemented by the CDT with the support of The Balkan Trust for Democracy (BTD). The aim of the publication and research concerned is to give as comprehensive as possible review of funding from both public and private sources for the election campaigns of parties and candidates. The information sources we used for the research are the laws and ordinances published in the Of ficial Gazette of Montenegro and the official data that the Ministry of Finance of Montenegro and local selfgovernment authorities provided us with pursuant to the Law on the Free Access to Infor mation, as well as reports by political parties published on the Web Site of the State Electoral Com mission (SEC). In addition to the Introduction, the present publication includes 26 chapters total. The second Chap ter gives an overview of the private funding of political parties. The said Chapter reflects the analysis of the Annual Statements on Property of parliamentary parties; the Annual Statements of Accounts of political parties and the audits of such accounts; financial statements of the parties that contested the local elections in 2010; penalty provisions provided for by the Law on Financing of Political Par ties. The subsequent 22 chapters give a review of the funding to political parties from the Budget sources in 2010, at national level and at the level of individual municipalities. Besides the statistics on payments made to political parties, the present publication compares the obtained data to the provisions of governing laws. Chapter 25 gives a detailed analysis of the legislative framework, in order to facilitate your reading and understanding of individual analyses of the funding concerned. The last one, i.e. Chapter 26 includes the annexes with all additional pieces of information relating to the research. Within the framework of the research given under the present publication, for the first time we did the analysis of the Annual Statements on Property of parliamentary parties, which has revealed that the total incomes of parliamentary parties in 2010 amounted almost to €4,500,000.00. Besides, after the analyses of those Statements, we have found that the new form for reporting does not pro vide for an obligation to publish the names of donors. Disclosing the names of donors by parties is in line with democratic and transparency principles – which ensure that media, civil society and cit izens can “control” the financing of political parties, taking into consideration that professional con trol of parties’ finance in our country is absent. Only Democratic Party of Socialists disclosed the names of donors that funded regular activities and election campaigns in the previous year. Regard less New Serb Democracy (NOVA), Socialist People’s Party (SNP), FORCA and Bosniak Party (BS) re ported the contributions made by natural persons, they did not disclose their names which would be in line with the positive practice. Whether it is possible that not a single citizen helped the activ ities of Movement for Changes (PzP) and Social Democratic Party (SDP) last year is an issue open to doubt, taking into account the said parties did not report donations from natural persons.

Uvod What is indicative of this situation is that last year parties gained less than €19,000.00 from legal persons. Disclosing the names of donors was omitted also in that case. The amount contributed by companies was significantly lower that that by which natural persons supported party activities and, taking into consideration the comparative practice, such situation is unlikely. A practice that companies are not interested in assisting activities of parties in the countries in which they operate is almost unknown. On the contrary, it happens frequently that one company funds several opposing parties. Reasons for the situation are hard to track down, since it is unknown whether the parties wish to hide the amounts they have been donated from companies or they wish to conceal the com panies that assist their activities. Anyway, this is about a very dangerous situation, since the public cannot find out whether and to which extent the capital has an effect on decisionmaking. When it comes to Annual Statements of Accounts of political parties, the major issue is that there is no appropriate form prescribed for submitting such statements of accounts. The situation makes unfeasible a good insight in financial flows of political parties and thereby it makes impossible a control of party finance. Besides the foregoing, the Web Site of the State Electoral Commission did not publish even 35 Reports on the Audit of Annual Statements of Accounts which is a serious violation of the Law. During the last year, elections of councilors were held in 15 municipalities in Montenegro. Regardless of the legal obligation to publish reports on the raised and expended funds, the Web Site of the State Electoral Commission did not publish even 30 such reports and 49 audit reports. Besides, the State Electoral Commission did not publish on their Web Site the names of natural and legal persons that contributed funds to the applicants of electoral lists – which is their obligation according to the Law. Budgets of local selfgovernments projected more than €1,350,000.00 for regular financing of po litical parties in 2010. According to our findings, municipalities disbursed more than €700,000.00 for regular functioning of political parties, which was more than €630,000.00 lower amount than projected. It has been observed in almost all municipalities that political parties were disbursed fewer funds than projected. Three municipalities, namely Herceg Novi, Kolašin and Bijelo Polje, have not provided the pieces of information we required, whereas Cetinje and Ulcinj did not make any disbursement to political parties. We have concluded that the one wishing to examine party finance cannot obtain a large number of pieces of information. That is a consequence of deficiencies in the Law on Financing of Political Par ties, since it is not ensuring a high level of transparency of such financing; it does not provide for ef fective control methods; and it does not specify responsibilities for undertaking measures aimed at a better enforcement of the Law. It is important to emphasize that the Center for Democratic Transition is a member of the Working Group on drafting the new law on financing of political parties, as well as that we will give our best to contribute, by our experience and knowledge gained in this one and in similar researches, to cre ating a better legal solution that would rely on transparency principles and that would ensure a clear and controlled process of the financing of political parties in Montenegro. The best advocate of any real interest in the topic of the financing of political parties is its presence in media. Since the begging of the year, more than 500 articles in electronic and print media have dealt with the financing of political parties. Comparing that with the situation in the previous years, it is about a serious increase in the interests in the topic, the major merits thereof being attributed exactly to the researches and analyses done by the Center for Democratic Transition in the field of the financing of political parties.

Financing to Political Parties from Private and Budget Funds in 2010

Financing to Parties from the Private Funds INTRODUCTION

The Center for Democratic Transition analyzed the private financing of political parties in 2010. Reports pub lished at the State Electoral Commission’s Web Sites and the enforcement of the applicable Law on Financing of Political Parties were analyzed. As compared to the previous research, the novelty is reflected in the fact that the Ministry of Finance approved the Instruction on the Contents of and/or on the Form for Annual Statement on Property of Parliamentary Par ties, ensuring thereby for the first time to make an analysis of the status of parties’ property. The said analysis has identified several key issues concerning the shortages of the Law, whereas particularly in relation to the part governing the transparency, control of and sanctioning violations of the Law provisions.

ANNUAL STATEMENTS ON THE PROPERTY OF POLITICAL PARTIES Article 25 of the Law on Financing of Political Parties prescribes that parliamentary parties shall be required to submit to the State Electoral Commission annual report on their property expressed by type, size and origin, not later than on 31st March of current year for the pervious one. Regardless the Law was enacted in 2008, Min istry of Finance has approved the Instruction on the Contents of and/or on the Form for Annual Statement on Property of Parliamentary Parties. After approving the said Instructions, the Ministry extended the deadline for submitting the annual statements by May 01st, in order to make some time for the parties to present their state ments in writing (http://www.mif.gov.me/vijesti/104664/SaopstenjeRokzadostavljanjegodisnjihizvjestaja oimovinipolitickihpartijaproduzenzamjesec.html). The new Form is considered as a significant step forward to transparency of the political parties’ functioning, since it was designed in the manner that ensures both an overview of parties’ assets and incomes expressed by categories and a method of acquiring thereof, with the cumulative amount of incomes stated at the end of the document and signed by a responsible person. A shortage of this new Form is reflected in the possibility to present a detailed overview of acquiring the incomes via an annex. For example, if certain political party has reached an income based on donations made by legal or natural persons, the Form requires as sufficient to state the cumulative amount of such donations with the names of donors to be given under the annex. On the one side, such solution makes sense since the “proliferation” of an nual statement text is avoided in such manner. However, the Instruction has not prescribed an annex submission as mandatory; thereby, an insight in the balance of incomes available to parties is practically prevented because a party need not present such annex. We consider that the introduction of the mandatory submission of annex along with the Annual Statement would be of importance to improving the system of financing of political par ties, given that a more comprehensive idea of how the assets are acquired by political parties is ensured thereby. According to Article 24 of the Law on Financing of Political Parties, the State Electoral Commission shall publish the Statements in the Official Gazette of Montenegro and on their Web Site. The Web Site of the State Electoral Commission published 10 Statements of political parties, out of which 8 Statements were published in line with the new contents and forms, whereas other ones were published on the Form for Annual Statement of Accounts prescribed for NGOs. The analysis of the Statements published in line with the new Instructions has revealed that the total incomes of parliamentary parties in 2010 amounted to €4,278,541.07. The said amount does not include the incomes of parliamentary parties that submitted their respective Statements in the Form for Annual Statements of Accounts prescribed for NGOs, such parties being Democratic Union of Albanians (DUA) and Dem ocratic Alliance in Montenegro DSCG. Coalition Perspective did not submit any Annual Statement, violating thereby the Law.

Financing to Parties from the Private Funds Observed by parties, the highest incomes in the last year were reached by Democratic Party of Socialists (DPS), i.e. €2,249,008.00, and then by Socialist People’s Party (SNP) €588,249.98. Social Democratic Party (SDP) reached the income amounting to €502,715.00, New Serb Democracy (NOVA) raised the one amounting to €425,651.62, Movement for Changes (PZP) the one amounting to €224,703.74 and Bosniak Party (BS) the one amounting to €155,263.60. The least income was reached by Croatian Civic Initiative (HGI) – €69,030.65 and New Democratic Force (FORCA) €63,918.48. The Budget funds used by parliamentary parties based on the regular financing of their activities were more than three million Euros, whereas the remaining necessary funds were provided via other fundraising means. As for donations from legal persons, parliamentary parties raised almost 19 thousand Euros (i.e. €18,896.00), whereas the amount of donations made by natural persons was considerably higher and amounted more than 660 thousand Euros (i.e. €667,790.00). The highest income from donations was reached by DPS, i.e. €654,190.00, with their Statement on Property stating all the names of contributors. Almost two thousand nat ural persons contributed funds to that party, their amounts ranging between €20.00 and €2,000.00, the latter being the legal maximum for such kind of donations. NOVA gained the income amounting to €9,000.00 from natural persons; SNP raised €4,120; and FORCA and BS raised €280.00 and €200.00 respectively. The State ments of those parties did not provide the names of contributors. Two parties, namely Social Democratic Party (SDP) and Movement for Changes (PzP) did not report the donations from private sources. Whether it is possible that not a single citizen helped the activities of these parties last year is an issue open to doubt. Regardless nei ther the Law nor other regulations have prescribed an obligation to disclose the names of persons contributing their respective funds to political parties, we consider it would be correct since such a rule would be in line with transparency principles. When it comes to the contributions of legal persons, names of the contributors were not disclose as well. Further, it sounds impossible that companies did not support the activities of political parties. A practice that companies are not interested in assisting activities of parties in the construes in which they operate is almost unknown. On the contrary, it happens that one company fund several opposition parties. Reasons for the situation are hard to track down, since it is unknown whether the parties wish to hide the amounts they have been donated from companies or they wish to conceal the companies that assist their activities. Anyway, this is not about a very dangerous situation; the public is deprived of the pieces of information concerning the effects of capital on the decisionmaking. A detailed analysis of the Annual Statements of political parties is given in Annex A.

ANNUAL STATEMENTS OF ACCOUNTS AND AUDITS The Law on Financing of Political parties prescribes that political parties shall be under an obligation to submit their respective Annual Statements of Accounts to the competent authority (namely to the Ministry of Finance). Besides, political parties shall be under an obligation to submit the Reports on Audits of their respective Annual Statements of Accounts to the State Electoral Commission. The State Electoral Commission is under an obligation to publish such Annual Statements of Accounts, as well as the Reports on the audit thereof both in the Official Gazette of Montenegro and on the Commission’s Web Site. The Law provides for that political parties shall be under an obligation to submit their Annual Statements of Accounts, without specifying whether it is about par liamentary of nonparliamentary parties or parties that are active at local level. However, only eight parties {De mocratic Center of Montenegro (DCCG), New Democratic Force (FORCA), Socialist people’s Party (SNP), People’s Party (NS), Socilaist Democratic party (SDP), Croatian Civic Initiative (HGI), Bosniak Party (BS) and Democratic Party of Socialist (DPS)} out of 37 political parties that have been registered in Montenegro, have their Annual Statements of Accounts published on the Web Site of the State Electoral Commission. One of the reasons for that is definitely the fact that certain registered political parties are not active any more. The issue of those par ties that are registered, but do not meet their obligations according to the Law, is still open. In that sense, it is necessary to introduce a rule on deleting from the Register of Parties those ones that have not been carrying out their functions on which their existence is based. The major issue when Annual Statements of Accounts are concerned is that neither specific Form for presenting annual statement of accounts nor tax return form has been prescribed. Over the previous period, the official

Financing to Political Parties from Private and Budget Funds in 2010 attitude of the Tax Administration was that the from prescribed for NGOs may be used for the purpose, while the form for annual tax return prescribed for legal persons may be used for the submission of annual tax returns by political parties. However, the fact is that the method of reporting prescribed for nongovernmental organi zations is not the adequate one for political parties to report on their annual statements of accounts! The said form is neither in line with the Law on Financing of Political Parties nor it meets the transparency requirements. In addition, it is not appropriate to reflect the total cash flows of political parties. Further on, such form does not offer any possibility to find out whether a party respected the Law in the part governing the financial oper ations of such party and, finally, the said form has not been aligned to the new one prescribed for the annual statements on property; so, it is impossible to get a clear picture of incomes and expenditures that a party reaches within a year concerned. Having in mind the foregoing, it is obvious that the Ministry of Finance should prescribe, as soon as possible, a new form for reporting annual statements of accounts of political parties, since the actual situation does not ensure a highquality insight in financial structures of political parties and, thereby, it makes impossible to have a control over the party financing. As it has already been stated, political parties shall be under an obligation to submit to the State Electoral Com mission the reports on the audits of their respective annual statements of accounts. If we take into consideration the number of political parties registered in Montenegro, the analysis of the data on the State Electoral Com mission’s Web Site has revealed 35 reports on the audits of annual statements of accounts missing meaning that the Law was violated in that respect. The List of Political parties registered in Montenegro is given in Annex B.

LOCAL ELECTIONS – 2010 Over the previous year, local elections of councilors were held in 15 Montenegrin Municipalities. Eightyseven (87) electoral lists contested for 518 seats in local councils. Local elections of 2010 were held in Andrijevica, Bar, Berane, Bijelo Polje, Cetinje, Danilovgrad, Kolašin, Plav, Pljevlja, Plužine, Podgorica (Golubovci and Tuzi), Rožaje, Šavnik, Ulcinj and Žabljak. The elections were repeated in Ulcinj Municipality and in Town District of Golubovci. According to the Law on Financing of Political parties, the applicants of electoral lists shall be under an obligation to submit to a competent local electoral commission within prescribed deadlines, as follows: • a report on the National and Municipal budget funds expended for election campaign, as well as all the doc uments relating to such report, and a report on the audit of such report; • a report on the origin, amount and structure of the privately sourced funds raised and expended for election campaign, as well as all the documents relating to such report; • a report by a certified auditor on the completed audit if the total amount of privately sourced funds raised and expended for election campaign exceeded €50,000.00. Finally, a complete report on the origin, amount and structure of the funds raised and expended for election campaign, as well as a report on the audit of such report must be published in the Official Gazette of Montenegro and on the Web Site of the State Electoral Commission. The analysis of the Web Site of the State Electoral Commission has revealed that, on May 16, 2011, 30 reports on the funds raised and expended and 49 reports on the completed audits were not published! The communication with the Ministry of Finance has reveled that additional nine reports on the raised and ex pended funds were subjected to the audit, but they do not have an information why the reports concerned were not published. Besides, it is not clear on which grounds parties with seats won in local councils were distributed funds after the elections since they have not submitted either their reports on election campaign related expenses or reports

Financing to Parties from the Private Funds on audits taking into account that Article 11 of the Law prescribes that such funds shall be distributed only after applicants of electoral lists have presented such reports to a competent electoral commission. We are ex pecting that the Ministry of Finance shall check who violated the Law in any particular case whether the parties that failed to submit their reports or municipal electoral commissions that did not forwarded to the State Elec toral Commission what they had received from political parties. Due to a large number of unpublished reports, it is not possible to establish the amount of funds raised and ex pended by political parties that contested the elections – which affect considerably the transparency of electoral process. We are calling upon the Ministry of Finance to enforce the Law explicitly and to the fullest, as well as to file reports on the violation of the Law. The CDT will monitor this process and inform the public thereof. The situation is interesting when it comes to donations from private sources. Even €221,011.00 were provided from natural persons’ contributions. Based on that, the highest amount was raised by DPS €160,506.00, and then by SDP and SNP, i.e. €59,505.00 and €1,000.00 respectively. The Annual Statement of DPS, as well as the statements on funds raised and expended by the Party and the Coalition it led, stated the names of all natural persons that had contributed funds for election campaign expenses. It is about more than 300 natural persons. When it comes to SDP, the names of contributors were stated under neither the Annual Statement nor the State ments on Funds Raised and Expended, except for the Statement on elections repeated in Ulcinj. The amount that SNP reported under their Annual Statement matched the amount stated under the Statement on Funds Raised and Expended for elections in Podgorica Municipality, and that Statement includes also the names of contributors. When it comes to donations from legal and natural persons, it is important to emphasize that Article 26 of the Law on Financing of Political Parties has been violated, with the State Electoral Commission being under an ob ligation according to the said Article to publish on their Web Site the names of natural and legal persons that contributed the funds to the applicants of electoral lists. Taking into consideration that was not done as well, we are witnessing one example more of an obvious breach of the Law. The List of unpublished statements on funds raised and expended , as well as of statements on audits, is given in Annex C.

PENALTY PROVISIONS The Law on Financing of Political Parties provides for certain penalty provisions for cases of violating individual provisions. A political party or coalition that has failed to submit any of the legally prescribed statements shall be subject to a fine ranging from onehundred to twohundred times the amount of the lowest wage in Montenegro. Besides, the responsible person of a party shall be subject to a fine ranging from fifteen to twenty times the amount of the lowest wage in Montenegro in case of the same violation. The Law prescribed that a fine ranging from onehundred to twohundred times the amount of the lowest wage in Montenegro shall be imposed also on a municipal electoral commission if they have failed to submit the state ments concerned to the State Electoral Commission, as well as on the State Electoral Commission if they have failed to publish such statements and the names of natural and legal contributors. The responsible persons in the said Electoral Commissions shall be subject to a fine due to the same violation. CDT is calling upon the Ministry of Finance to request, as soon as possible, an initiation of a misdemeanor pro cedure against all the persons that have failed to obey the Law on Financing of Political Parties and to ensure, in such manner, a consistent enforcement of the said Law. As for the legal certainty, it is of a paramount impor tance to sanction adequately for any violation of any Law.

Financing to Political Parties from Private and Budget Funds in 2010

Montenegro

The information sources we used are the documents that CDT was provided with by the Ministry of Finance, based on the Decision No. 081558/1 dated March 01, 2011, as well as the official docu ments published in the Official Gazette of Montenegro.

REGULAR FINANCING The 2010 Budget Law of Montenegro projected the total amount of the Budget funds to be €1,425,963,634.38, out of which €777,615,422.95 for the Operating Budget.1 The funds for the activ ities of the parliamentary parties were projected as €2,100,000.00, i.e. 0.27% of the Operating Budget.

Table 1: Funds disbursed for regular financing of political parties 20102 PARTY Democratic Party of Socialists of Montenegro Socialist People’s Party Social Democratic Party New Serb Democracy Movement for Changes Bosniak Party Democratic Alliance in Montenegro Democratic Union of Albanians Croatian Civic Initiative New Democratic Force FORCA Perspective NGO TOTAL

AMOUNT (IN €) 944,461.87 450,108.04 267,977.76 241,959.13 163,903.29 111,866.10 59,828.86 59,828.86 59,828.86 59,828.86 59,828.86 2,479,420.49

There is a notable difference between the amount in the Law on Budget for 2010 and the amount obtained by the analyses of the Analytical Records. A detailed analysis of financing the regular ac tivities of parliamentary parties is possible only after the approval to the Annual Statement of Ac counts of the 2010 Budget.

1 2

The 2010 Budget Law of Montenegro, Official Gazette of Montenegro, No. 007/0912 as of December 30, 2008 Official data obtained based on the Law on the Free Access to information.

Andrijevica Municipality

The information sources we used are the documents that CDT was provided with by the Secre tariat for Local Government Affairs of Andrijevica Municipality, based on the Decision No. 007 3/2011041/1 dated March 03, 2011, Decision No. 0072/2011041/1 dated March 03, 2011 and Decision No. 00702/2011041/1 dated March 08, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Andrijevica municipal authority ensured CDT, within the legally prescribed dead line, the access to the required information by sending the accurate data on financing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.3 Accordingly, for covering the cost of election cam paigns for the local elections in Andrijevaca Municipality, 0.15%, i.e. €1,132.15 should have been allocated from the Municipal Operating Budget projected to amount to €754,767.77 for that year. According to the Analytical Records provided by Andrijevica Municipality, for covering the expenses of the election campaigns for the election of councilors €1,092.004 were allocated.

3 4

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10. Official data obtained on the basis of the Law on the Free Access to Information.

Financing to Political Parties from Private and Budget Funds in 2010

After analysis of the received documents, we have found that the allocation of those funds was done according to 20%80% formula.5

Table 2: The amount of funds allocated to parties for the 2010 local elections6 PARTY DPS „For European Andrijevica Srđan Mašović“ Coalition „Better Andrijevica, Better Montenegro“, SNP CG, Nova, PzP, SSR, DS, SPI i SP, JKP CG Social Democratic Party „For Better Tomorrow“ Radenović Veselin, Councilor TOTAL

20% 71.60

80% 424.45

TOTAL 496.05

71.60

424.45

496.05

71.60 0.00 214.80

0.00 28.30 877.20

71.60 28.30 1,092.00

Upon comparing the Analytical Records with the documents published in the Official Gazette, we have reached to a conclusion that political parties were disbursed, for covering the cost of electoral campaign for the election of councilors, €1,092.00 total – which was €40.15 less than the amount projected for the purpose by the Appropriation Ordinance for the Budget of Andri jevica Municipality.

REGULAR FINANCING The projected Budget of Andrijevica Municipality amounted to €881,767.77, whereas, according to the formula, the Operating Budget was €754,767.77. The projected amount to be transferred to political parties, factions and associations was €7,283.147, i.e. 0.96% of the 2010 Operating Budget.

Table 3: Funds disbursed for regular financing of political parties 20108 PARTY Democratic Party of Socialists Socialist People's Party Serb People’s Party Movement for Changes Social Democratic Party Serbian Radical Party – Dr Vojislav Šešelj Veselin Radenović, Councilor Democratic Serb Party People’s Socialist Party People’s Party TOTAL

AMOUNT (IN €) 2,542.55 1,816.97 895.17 340.27 252.40 248.11 184.32 155.95 155.95 155.95 6,747.64

Based on both the documents published in the Official Gazette and the Analytical Records that we were provided with by the Andrijevica municipal authority in charge, it can be concluded that the amount of €6,747.64 was allocated to regular financing of political parties, i.e. €535.50 less than the amount projected for the purpose by the Appropriation Ordinance for the Budget of Andrijevica Municipality. The final analysis of financing the regular activities of parties in Andirjevica Municipality will be done after the Annual Statement of Accounts of the 2010 Budget of Andrijevica Municipality is approved. 5 6 7

More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework. Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Andrijevica, Official Gazette of Montenegro Municipal Ordinances No. 014/105 dated April 15, 2010. Official data obtained on the basis of the Law on the Free Access to Information.

Bar Municipality

The information sources we used are the documents that CDT was provided with by the Secre tary of Bar Municipality, based on the Decision No. 030154/2 dated May 10, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Bar municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on financing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Law on Financing of Political Parties.9 Accordingly, for covering the cost of the election cam paigns for the local elections in Bar, 0.15%, i.e. €13,725.00 should have been allocated from the Operating Budget projected to amount to €9,150,000.00 for that year. Due to some technical difficulties, we are not in a situation to publish the amounts that Bar mu nicipal authorities disbursed for financing of election campaign. The said amounts will be en compassed in one of the following researches.

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Financing to Political Parties from Private and Budget Funds in 2010

REGULAR FINANCING The projected 2010 Budget of Bar Municipality amounted to €24,650,000.00, whereas, accord ing to the formula, the Operating Budget was €9,150,000.00. The projected amount to be allo cated to political parties amounted to €91,500.0010 total, which was 1.00% of the 2010 Operating Budget. Upon the Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Bar, the Budget was reduced to €16,700,000.00 and the Operating Budget was reduced to €8,850,000.00 as well, whereas the amount projected for political par ties remained the same, i.e. €91,500.0011, which was 1.03% of the Operating Budget.

Table 4: Funds disbursed for regular financing of political parties 201012 PARTY Democratic Party of Socialists Social Democratic Party Movement for Changes Socialist People's Party Serb People's Party Bosniak Party Democratic League People's Party Liberal Party Democratic Center People's Serb Party TOTAL

AMOUNT (IN €) 29,944.00 11,044.00 7,804.00 7,264.00 7,084.00 4,204.00 3,124.00 3,124.00 2,840.00 1,704.00 1,420.00 79,556.00

Based on both the documents published in the Official Gazette and the Analytical Records we were provided with by the relevant Bar municipal authority, we can conclude that political par ties were disbursed €79,556.00 total for covering the expenses of their regular activities, which was 11,944.00€ less than the amount projected for the purpose under the Appropriation Or dinance for the 2010 Municipal Budget of Bar. The final analysis of financing the regular activities of political parties in Bar Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

Appropriation Ordinance for the 2010 Municipal Budget of Andrijevica, Official Gazette of Montenegro Municipal Ordinances No. 042/0918 dated December 20, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Bar, Official Gazette of Montenegro – Municipal Ordinances, No.43/103 dated December 31, 2010. Official data obtained on the basis of the Law on the Free Access to Information.

Berane Municipality

The information sources we used are the documents that CDT was provided with by the Secre tariat for Finance, Development and Transport of Berane Municipality based on the Decision Nos. 06401101 and 06401102, both dated February 25, 2011, as well as the official docu ments published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Berane municipal authority allowed and ensured CDT, within the legally pre scribed deadline, the access to the required information by sending cumulative amounts for fi nancing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Law on Financing of Political Parties.13 Accordingly, for covering the cost of election campaigns for the local elections in Berane, 0.15%, i.e. €8,615.10 should have been allocated from the Op erating Budget projected to amount to €5,743,400.00 for that year. According to the data under the Analytical Records provided by Berane Municipality, for covering the expenses of the elec tion campaigns for the election of councilors €8,184.36 were allocated. The analysis of the received documents has shown that the distribution of those funds were according to 20%80% formula.14 13 14

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10. More details on the criteria for the allocation of funds may be found in Chapter 25 – Analysis of Legislative Framework.

Financing to Political Parties from Private and Budget Funds in 2010

Table 5: The amount of funds allocated to parties for the 2010 local elections15 PARTY DPS, SDP „For European Berane“ „Better Berane Better Montenegro“ Bosniak Party TOTAL

20% 430,76 430,76 430,76 1.292,28

80% 3.741,02 3.151,06 0,00 6.892,08

TOTAL 4.171,78 3.581,82 430,76 8.184,36

Upon comparing the Analytical Records with the documents published in the Official Gazette, we have reached to a conclusion that political parties were disbursed, for covering the cost of electoral campaign for the election of councilors, €8,184.36 which was €430.74 less than the legally prescribed amount.

REGULAR FINANCING The projected 2010 Budget of Berane Municipality was €7,751,400.00, whereas, according to the formula, the Operating Budget was €5,743,400.00. The projected amount to be transferred to political parties and associations was €40,000.0016 total, which was 0.69% of the 2010 Op erating Budget. Upon the Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Berane, the Budget was reduced to €6,858,070.00 and the Op erating Budget was reduced to €5,578,070.00 as well, whereas the amount projected for polit ical parties remained the same, i.e. €40,000.0017, which was 0.71% of the Operating Budget.

Table 6: Funds disbursed for regular financing of political parties 201018 PARTY New Serb Democracy People’s Party Socialist People’s Party Party of Serb Radicals Democratic Party of Socialists Social Democratic Party Movement for Changes Democratic Serb Party TOTAL

AMOUNT (IN €) 8.200,00 6.100,00 6.000,00 3.247,02 3.072,15 3.000,00 2.000,00 1.200,00 32.819,17

Upon comparing the amounts stated under the documents provided to us by Berane municipal authorities to the amounts stated under the Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Berane, we have reached to a con clusion that political parties in that Municipality were disbursed €7,180.83 less than projected. The final analysis of the financing of regular party activities in Berane Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved. 15 16

Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Berane, Official Gazette of Montenegro – Municipal Ordinances, No. 003/1044 dated January 21, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Berane, Official Gazette of Montenegro – Municipal Ordinances, No. 041/09014 dated December 22, 2009. Official data obtained on the basis of the Law on the Free Access to Information.

Bijelo Polje Municipality

The information sources we used are the documents that CDT was provided with by the Secre tariat for Finance and Economic Development of Bijelo Polje Municipality based on the Letter No. 05/1782 dated April 26, 2011 and the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Bijelo Polje municipal authority allowed and ensured CDT, within the legally pre scribed deadline, the access to the required data on financing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the election campaign of political parties was regulated under the Law on Financing of Political Parties.19 Accordingly, for covering the cost of the election cam paigns for the local elections in 0.15%, i.e. €8,754.90 should have been allocated from the Op erating Budget projected to amount to €5,836,600.00 for that year. According to the data under the Analytical Records provided by Bijelo Polje Municipality, for covering the expenses of the election campaigns for the election of councilors €8,777.40 were disbursed. The analysis of the received documents has shown that the distribution of those funds were according to 20% 80% formula.20

19 20

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10. More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework.

Financing to Political Parties from Private and Budget Funds in 2010

Table 7: The amount of funds allocated to parties for the 2010 local elections21 PARTY “European Bijelo Polje – European Montenegro“ „Better Bijelo Polje, Better Montenegro“ Bosniak Party Party of Serb Populists – Serbian Club Independent Citizens Group TOTAL

20% 351.00 351.00 351.00 351.00 351.00 1,755.00

80% 4,250.40 2,402.40 369.60 0.00 0.00 7,022.40

TOTAL 4,601.40 2,753.40 720.60 351.00 351.00 8,777.40

Upon comparing the Analytical Records with the documents published in the Official Gazette, we have concluded that political parties were disbursed, for covering the cost of electoral cam paign for the election of councilors, €8,777.40 was disbursed which is in line with Law.

REGULAR FINANCING The projected 2010 Budget of Bijelo Polje Municipality was €12,420,000.00, whereas, according to the formula, the Operating Budget was €5,836,600.00. The projected amount to be trans ferred to political parties was €70,000.0022, which was 1.19% of the 2010 Operating Budget. Upon the Amendments to the Appropriation Ordinance for the 2010 Municipal Budget of Bijelo Polje, the Budget was reduced to €9,420,000.00, whereas, according to the formula, the Oper ating Budget was €5,796,200.00. The projected amount to be transferred to political parties was €75,423.0023 total, i.e. 1.30% of the 2010 Operating Budget.

Table 8: Funds disbursed for regular financing of political parties 201024 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party New Serb Democracy Movement for Changes Liberal Party Democratic Serb Party Community of Muslims and Bosniaks People’s Party Bosniak Party Bosniak Democratic Party TOTAL

AMOUNT (IN €) 23.500,00 11.000,00 8.500,00 8.100,00 5.700,00 3.500,00 3.490,00 3.001,62 2.600,00 2.100,00 0,00 71.491,62

After comparing the amounts stated under the documents provided by Bijelo Polje Municipality with the ones stated under the 2010 Budget, we have concluded that political parties in the said Municipality were disbursed €3,931.38 less than projected. The final analysis of the financing of regular party activities in Bijelo Polje Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved. 21 22

Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Bijelo Polje , Official Gazette of Montenegro – Municipal Ordinances, No. 003/1017 dated January 21, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Bijelo Polje, Official Gazette of Montenegro – Municipal Ordinances, 004/113 dated Januaty 24, 2011. Official data obtained on the basis of the Law on the Free Access to Information.

Budva Municipality

The information sources we used are the documents that CDT was provided with by the Secre tariat for Economy and Finance of Budva Municipality, based on Decision No. 04466/2 dated February 23, 2011, as well as the official documents published in the Official Gazette of Mon tenegro – Municipal Ordinances. The relevant Budva municipal authority responded to the Request for the Free Access to Infor mation within the legally prescribed deadline.

REGULAR FINANCING The projected 2010 Budget of Budva Municipality was €61,573,000.00, whereas, according to the formula, the Operating Budget was €43,324,000.00. The projected amount to be transferred to political parties was €120,000.0025 total, which was 0.27% of the 2010 Operating Budget, i.e. far below the legally prescribed minimum. Upon Amendments and Supplements, the 2010 Budget of Budva Municipality was reduced to €48,750,000.00 , whereas, according to the formula, the Operating Budget was €30,136,340.00. Ordinance for Amendments and Supplements to the Budget of Budva Municipality projected €20,000.0026 total for the financing of the regular activities of political parties holding seats in Budva Municipal Council. The Decision communicated by the relevant Budva municipal authority states that between January 01 and December 31, 2010 and for the purpose of financing of regular activities of po litical parties holding seats in Budva Municipal Council, Municipal Budget disbursed: • €500.00 to Movement for Changes • €3,000.00 to New Serb Democracy. The foregoing documents do not encompass any piece of information concerning disburse ments to other political parties. The amount of €3,500.00, which is referred to under the Decision, was considerably lower that that projected under the Appropriation Ordinance for the Budget of Budva Municipality.

25 26

Appropriation Ordinance for the 2010 Budget of Budva Municipality, Web Site of Budva Municipality, www. opstinabudva.com. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Budget of Budva Municipality, Of ficial Gazette of Budva Municipality, No. 001/1133 dated January 12., 2011.

Financing to Political Parties from Private and Budget Funds in 2010

The scanned Decision made by the Secretariat for Economy and Finance of Budva Municipality as of February 23, 2011

Between January the 1st and December the 31st 2010, for funding the regular activities of political parties holding their seats in Municipal Council of Budva, the municipal budget disbursed: €500.00 to Movement for Changes €3,000.00 to New Serb Democracy

Cetinje, Historical Capital

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy, Development and Finance of Cetinje Historical Capital, based on the Decisions Nos. 04061/11801/1, 04061/11801/2 and 04061/11801/2/1 dated February 23, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Cetinje municipal authority responded to the CDT’s Request for the Free Access to Information within the legally prescribed deadline.

ELECTIONS OF COUNCILORS Results of the Election of Councilors February 7, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.27 Accordingly, for covering the cost of the election cam paigns for the local elections in Cetinje Historical Capital, 0.15%, i.e. €9,021.00 should have been allocated from the Operating Budget projected to amount to €6,014,000.00 for that year. Ac cording to the data forwarded by Cetinje Historical Capital concerning covering the cost of the campaigns for election of councilors, the confirmed lists of candidates were disbursed €1,568.00. As for financing of political parties with seats won, the foregoing Decision states that the Budget of Cetinje Historical Capital did not make, after the election of February 07, 2010, any disburse ment for covering the expenses of election campaigns pursuant to the Law on Financing of Po litical Parties to any electoral list with seats won in the Council of Cetinje Historical Capital. 27

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Financing to Political Parties from Private and Budget Funds in 2010

Table 9: The amount of funds allocated to parties for the 2010 local elections28 PARTY Democratic Party of Socialists Social Democratic Party Socialist People’s Party Coalition – Liberal Party and Citizens Group TOTAL

20% 392.00 392.00 392.00 392.00 1.568.00

80% 0.00 0.00 0.00 0.00 0.00

TOTAL 392.00 392.00 392.00 392.00 1,568.00

According to the data obtained from the Analytical Records provided by Cetinje Historical Cap ital, we have concluded that political parties were disbursed, for covering the expenses of elec tion campaigns for the election of councilors, €1,568.00 which was €7,453.00 less than the legally prescribed amount. The scanned Decision made by the Secretariat for Economy, Development and Finance, of Cetinje, Historical Capital as of February 23, 2011

After acting upon the Request, the said authority has con cluded that the Budget of His torical Capital did not disburse, after the elections held on Feb ruary 07, 2010, any funds for covering the cost of election campaign pursuant to the pro visions of the Law on Financing of Political Parties (Official Gazette of Montenegro, Nos. 49/08 and 49/10) to any of the electoral lists with seats won in the Council of Cetinje Historical Capital.

Official data obtained on the basis of the Law on the Free Access to Information.

Cetinje, Historical Capital

REGULAR FINANCING The projected 2010 Budget of Cetinje Historical Capital amounted to €6,300,000.00, whereas, according to the formula, the Operating Budget was €6,014,000.00. The projected amount to be transferred to political parties, factions and associations was €40,000.00 total, which was 0.66% of the 2010 Operating Budget. The documents provided by Cetinje Historical Capital have revealed that Cetinje Historical Cap ital did not make a disbursement to political parties holding seats in the Municipal Council and, thereby, it did not obey the legal framework.

The scanned Decision made by the Secretariat for Economy, Development and Finance, of Cetinje, Historical Capital as of February 23, 2011

After acting upon the Request, the said authority has found that between January the 1st and December 31st, 2010, the budget of Historical Capital did not disburse any funds for fi nancing the regular activities of political parties holding seats on the Council to any of the parties holding seats on the Council of Cetinje Historical Capital, except for the previous years’ outstanding amounts; consequently, we do not have the required information.

Appropriation Ordinance for the 2010 Municipal Budget of Cetinje, Official Gazette of Montenegro Municipal Ordinances No. 013/0910 dated April 13, 2009.

Financing to Political Parties from Private and Budget Funds in 2010

10.

Danilovgrad Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economy of Danilovgrad Municipality, based on the Decisions No. 030323479/1, 03323482/1 dated February 25, 2011 and the Letters Nos. 030323479/2 and 030323482/2 dated March 04, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Danilovgrad municipal authority allowed and ensured CDT, within the legally pre scribed deadline, the access to the required information by sending the accurate data on financing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.30 Accordingly, for covering the cost of election cam paigns for the local elections in Danilovgrad, 0.15%, i.e. €5,575.87 should have been allocated from the Municipal Operating Budget projected to amount to €3,717,250.0077 for that year. According to the Analytical Records provided by Danilovgrad Municipality, for covering the ex penses of the election campaigns for the election of councilors €5,575.86 were disbursed which is 0.15% of the Operating Budget and is in line with the Law. After analysis of the received documents, we have found that the allocation of those funds was done according to 20%80% formula.31 30 31

Danilovgrad Municipality

Table 10: The amount of funds allocated to parties for the 2010 local elections32 PARTY Coalition „For European Danilovgrad“ Coalition „Better Danilovgrad Better Montenegro“ Citizens Group – Give Us Back Danilovgrad TOTAL

20% 371.72 371.72 371.72 1,115.16

80% 2,568.30 1,892.40 0.00 4,460.70

TOTAL 2,940.02 2,264.12 371.72 5,575.86

The comparison of the Analytical Records and the documents published in the Official Gazette, we have concluded that political parties were disbursed €5,575.86 total, for covering the cost of election campaign for the election of councilors which matched the amount prescribed by the Law for the purpose.

REGULAR FINANCING The projected 2010 Budget of Danilovgrad Municipality amounted to €4,950.000.00, whereas, ac cording to the formula, the Operating Budget was €3,717,250.00. The projected amount to be trans ferred to political parties was €47,900.0033 total, i.e. 1.28% of the 2010 Operating Budget – which is more then the legally prescribed maximum. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Munic ipal Budget of Danilovgrad provided for to reduce the projected Budget to €2,980,000.00 and the Operating Budget to €2,634.300.0034. The funds projected to be transferred for regular activities of political parties amounted to €45,400.00, i.e. 1.72% of the 2010 Operating Budget.

Table 11: Funds disbursed for regular financing of political parties 201035 PARTY Democratic Party of Socialists Socialist People’s Party Socialist Democratic Party Movement for Changes Democratic Serb Party Serb People’s Party New Serb Democracy People’s Party People’s Socialist Party Miljan Stanišić36 Party of Pensioners, Disabled People and Social Justice of Danilovgrad Democratic Center TOTAL

AMOUNT (IN €) 18,196.05 6,925.65 4,640.82 4,217.02 2,337.39 2,336.18 1,621.80 1,562.71 1,562.71 886.80 774.68 594.16 45,655.97

After the analysis of the available documents, we have concluded that Danilovgrad Municipality dis bursed to political parties 1.73% of the total Budget funds reduced by the amount of the Capital Budget, which was 0.73% more than the legally prescribed maximum. The final analysis of the financing of the regular activities of parties in Danilovgrad Municipality will be done after the Annual Statement of Accounts of the 2010 Budget of Danilovgrad Municipality is approved. 32 33

35 36

Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Danilovgrad, Official Gazette of Montenegro – Municipal Ordinances, No. 013/102 dated April 08, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Danilovgrad, Official Gazette of Montenegro – Municipal Ordinances, No. 043/1033 date December 31, 2010. Official data obtained on the basis of the Law on the Free Access to Information. Councilor that left Serb People’s Party Club.

Financing to Political Parties from Private and Budget Funds in 2010

11.

Herceg Novi Municipality

The information sources we used are the official documents published in the Official Gazette of Mon tenegro – Municipal Ordinances. After the lodged appeal, the Chief Administrator of Herceg Novi made the Decision No. 0210060 45/11 dated on May 24, 2011 to order the Secretary of the Secretariat for Finance and Economy De velopment to act upon the Appeal we had tabled. However, we have not been provided with the required pieces of information; consequently, we are now forced to bring an action against Herceg Novi Municipality.

REGULAR FINANCING The 2010 Budget of Herceg Novi Municipality was projected to be €18,508,000.00, whereas, ac cording to the formula, the Operating Budget was €11,280,000.00. The projected amount to be trans ferred to political parties, factions and associations was €183,000.0037, which was 1.6% of the 2010 Operating Budget. Upon approving the Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Herceg Novi, the Budget was reduced to €11,237,000.00 and the Operating Budget was reduced to €9,405,400, whereas the amount projected for political parties was €144,000.0038 total, i.e. 1.53% of the Operating Budget.

Appropriation Ordinance for the 2010 Municipal Budget of Herceg Novi, Official Gazette of Montenegro – Municipal Ordinances, No. 008/0932 dated March 01, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Herceg Novi, Official Gazette of Montenegro – Municipal Ordinances, No. 040/1060 dated December 14, 2010.

Opština Kolašin

12.

Kolašin Municipality

The information sources we used are the official documents published in the Official Gazette of Mon tenegro – Municipal Ordinances. After the lodged appeal, the Chief Administrator of Kolašin made the Decision No. 07152/UP3 dated on April 14, 2011 to order the Secretary of the Secretariat for Economy and Finance to act upon the Appeal we had tabled. However, we have not been provided with the required pieces of in formation; consequently, we are now forced to bring an action against Kolašin Municipality.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.39 Accordingly, for covering the cost of election campaigns for the local elections in Kolašin, 0.15%, i.e. €6,751.58 should have been allocated from the Municipal Op erating Budget projected to amount to €4,501,053 for that year.

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10..

Financing to Political Parties from Private and Budget Funds in 2010

REGULAR FINANCING The projected Budget of Kolašin Municipality amounted to €5,351,000.00, whereas, according to the formula, the Operating Budget was €4,501,053. The projected amount to be allocated for the ac tivities of political parties and councilors was €45,000.0040 total, i.e. 1.00% of the 2010 Operating Budget. Upon Amendments and Supplements, the 2010 Budget of Kolašin Municipality was reduced to €2,984,453.00, whereas, according to the formula, the Operating Budget was €2,779,453.00. The projected amount to be allocated for the activities of political parties and councilors amounted to €27,672.0041, i.e. 1.00% of the 2010 Operating Budget.

Appropriation Ordinance for the 2010 Municipal Budget of Kolašin, Official Gazette of Montenegro – Municipal Ordinances, No. 003/1082 dated January 21, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Kolašin, Official Gazette of Montenegro – Municipal Ordinances, No. 004/11106 dated January 24, 2011.

Kotor Municipality

13.

Kotor Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economy of Kotor Municipality, based on the Decision No. UP040117/11 dated March 17, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Kotor municipal authority allowed and ensured CDT, within the legally prescribed dead line, the access to the required information by sending the accurate data on the financing to political parties in 2010.

REGULAR FINANCING The projected 2010 Budget of Kotor Municipality was €20,394,442.00€, whereas, according to the formula, the Operating Budget was €6,813,442.00. The projected amount to be transferred to polit ical parties, factions and associations was €100,000.0042, i.e. 1.46% of the 2010 Operating Budget. Upon Amendments and Supplements, the 2010 Budget of Kotor Municipality was reduced to €7,952,674.00, whereas, according to the formula, the Operating Budget was €6,449,874.00. The projected amount to be transferred to political parties, factions and associations was €70,000.0043 total, i.e. 1.08% of the 2010 Operating Budget.

Table 12: Funds disbursed for regular financing of political parties 201044 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party Democratic Serb party Croatian Civic Initiative Movement for Changes People’s Party Serb People’s Party Liberal Party Ljubo Božović45 TOTAL

44 45

AMOUNT (IN €) 18,231.36 8,664.03 5,239.20 4,628.40 2,314.20 2,314.20 2,314.20 2,082.78 1,888.35 1,023.75 48,700.47

Appropriation Ordinance for the 2010 Municipal Budget of Kotor, Official Gazette of Montenegro – Municipal Ordinances, No. 004/105 dated January 26, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Kotor, Official Gazette of Montenegro – Municipal Ordinances, No. 041/104 dated December 21, 2010. Official data obtained on the basis of the Law on the Free Access to Information. Councilor of Citizens` List.

Financing to Political Parties from Private and Budget Funds in 2010 Besides, the provided documents showing the funds intended for political parties, factions and as sociations have revealed the payments into the following accounts: • Association of Veterans, NGO 2.500,00€ • Veterans Organization 500,00€ • Veljko Uskoković 377,67€ • CKB 262,50€46 After the analysis of the documents published in the Official Gazette of Montenegro, we have con cluded that Kotor Municipality disbursed to political parties €21,299.53 less than projected by the Budget. The final analysis of the financing of the regular activities of parties in Kotor Municipality will be done after the Annual Statement of Accounts of the 2010 Budget of is approved.

Official data obtained on the basis of the Law on the Free Access to Information.

Mojkovac Municipality

14.

Mojkovac Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economic Development of Mojkovac Municipality, based on the Decision No. 08220 dated February 25, 2011, as well as the official documents published in the Official Gazette of Mon tenegro – Municipal Ordinances. The relevant Mojkovac municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on the financing to political parties in 2010.

REGULAR FINANCING The projected 2010 Budget of Mojkovac Municipality amounted to €2,878,849.41, whereas, according to the formula, the Operating Budget was €2,019,849.41. The projected amount to be transferred to political parties, factions and associations was €17,000.0047 total, i.e. 0.84% of the 2010 Operating Budget. Besides, the Budget projected the funds to cover the rent for the offices for councilor clubs in the amount to €4,800.00. Upon Amendments and Supplements, the 2010 Budget of Mojkovac Municipality was reduced to €2,056,627.70, whereas, according to the formula, the Operating Budget was €1,767,554.748. The projected amount to be transferred to political parties, factions and associations was €17,000.00 total, i.e. 0.96% of the 2010 Operating Budget. Besides, the Budget projected the funds to cover the rent for the offices for councilor clubs in the amount to €4,800.00.

Table 13: Funds disbursed for regular financing of political parties in 201049 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party TOTAL

AMOUNT (IN €) 9,061.86 6,000.00 2,000.00 17,061.86

Financing for regular activities of political parties in Mojkovac Municipality in 2010 was completed within the legally prescribed deadline The final analysis of the financing of the regular activities of parties in Mojkovac Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

Appropriation Ordinance for the 2010 Municipal Budget of Mojkovac, Official Gazette of Montenegro Municipal Ordinances No. 014/1094 dated April 15, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Mojkovac, Official Gazette of Montenegro Municipal Ordinances No. 005/1132 dated January 28, 2011. Official data obtained on the basis of the Law on the Free Access to Information.

Financing to Political Parties from Private and Budget Funds in 2010

15.

Nikšić Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance, based on the Decision No. 06402/56 dated February 21, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Nikšić municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on the financing to political parties in 2010.

REGULAR FINANCING The projected 2010 Municipal Budget of Nikšić amounted to €30,660,800.00, whereas, according to the formula, the Operating Budget was €28,249,263.00. Funding for the regular activities of the parties holding seats in the Council amounted to €78,440.0050, i.e. 0.27% of the 2010 Operating Budget. Upon Amendments and Supplements, the 2010 Municipal Budget of Nikšić was reduced to €24,998,735.43, whereas, according to the formula, the Operating Budget was €22,602,665.43. Fund ing for the regular activities of the parties holding seats in the Council was projected to be €79,000.0051, i.e. 0.35% of the 2010 Operating Budget.

Table 14: Funds disbursed for regular financing of political parties in 201052 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party New Serb Democracy Movement for Changes Democratic Center of Montenegro – Liberal party People’s Party Democratic Serb Party TOTAL

AMOUNT (IN €) 19,847.13 8,399.01 4,582.97 4,582.97 2,674.95 2,101.74 1,720.94 1,720.94 45,630.55

Upon comparing the documents provided with the data published in the Official Gazette, we have concluded that the relevant Nikšić municipal authority disbursed, for the regular activities of the parties holding seat in the Council, €33,369.45 less than projected under the Budget. The final analysis of the financing of the regular activities of political parties in Nikšić Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved. 50

Appropriation Ordinance for the 2010 Municipal Budget of Nikšić, Official Gazette of Montenegro Municipal Ordinances No. 042/0977 dated December 29, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Nikšić, Official Gazette of Montenegro Municipal Ordinances No. 043/1081 dated December 31, 2010. Official data obtained on the basis of the Law on the Free Access to Information.

Plav Municipality

16.

Plav Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy, Development and Finance of Plav Municipality, based on the Decision No. 03339 dated March 28, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Plav municipal authority allowed and ensured CDT, within the legally prescribed dead line, the access to the required information by sending the accurate data on the financing to political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.53 Accordingly, for covering the cost of election campaigns for the local elections in Plav, 0.15%, i.e. €2,807.17 should have been allocated from the Municipal Operating Budget projected to amount to €1,871,448.00 for that year. According to the data under the Analyt ical Records provided by relevant Plav municipal authority, for covering the expenses of the election campaigns for the election of councilors €8,282.00 were disbursed, i.e. 0.44% of the Operating Budget.

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Financing to Political Parties from Private and Budget Funds in 2010 Table 15: The amount of funds allocated to parties for the 2010 local elections 201054 PARTY Social Democratic Party Bosniak Party Socialist People’s Party Party for Gusinje Democratic Party of Socialists Democratic Alliance in Montenegro Serb People’s Party FORCA Democratic Union of Albanians TOTAL

20% 40.00 80.00 80.00 80.00 40.00 0.00 0.00 0.00 80.00 400.00

80% 2,290.00 2,012.00 987.00 823.00 826.00 537.00 223.00 184.00 0.00 7,882.00

TOTAL 2,330,00 2,092,00 1,067.00 903.00 866.00 537.00 223.00 184.00 80.00 8,282.00

Analyzing the data contained in the Analytical Records provided by Plav municipal authority has not revealed which criterions were followed for the distribution of funds to political parties for fund ing their election campaigns, whereas €5,474.83 were disbursed more than the amount provided for by the Law.

REGULAR FINANCING The projected 2010 Budget of Plav Municipality amounted to €2,812,448.00, whereas, according to the formula, the Operating Budget was €1,871,448.00. The projected amount to be transferred to political parties was €12,000.0055 total, i.e. 0.64% of the 2010 Operating Budget.

Table 16: Funds disbursed for regular financing of political parties in 201056 PARTY Democratic Party of Socialists Democratic Union of Albanians Socialist People’s Party Democratic Union of Albanians FORCA TOTAL

AMOUNT (IN €) 1,300.00 1,000.00 300.00 80.00 80.00 2,760.00

After the analysis of the provided documents and the data published in the Official Gazette Munic ipal Ordinances, we have concluded that political parties in Plav Municipality were disbursed €9,240.00 less than projected under the Budget. The final analysis of the financing of the regular activities of parties in Plav Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

54 55

Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Plav, Official Gazette of Montenegro Municipal Ordinances No. 015/1020 dated April 22, 2010. Official data obtained on the basis of the Law on the Free Access to Information.

Plužine Municipality

17.

Plužine Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Local Government of Plužine Municipality, based on the Decision No. 04381/1 dated February 21, 2011; Decision No. 042535 dated December 30, 2010; Decision No. 041722 dated September 17, 2010; De cision No. 04557 dated March 30, 2010 and the Letter No. 4407 dated February 25, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Plužine municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on financing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.57 Accordingly, for covering the cost of election campaigns for the local elections in Plužine, 0.15%, i.e. €3,305.70 should have been allocated from the Municipal Op erating Budget projected to amount to €2,203,800.00. for that year. According to the Analytical Records provided by the relevant Plužine municipal authority, for cov ering the expenses of the election campaigns for the election of councilors €3,305.70 were disbursed, i.e. 0.15% of the Operating Budget – which is in line with the Law. After analysis of the received documents, we have found that the allocation of those funds was done according to 20%80% formula.58 57 58

Financing to Political Parties from Private and Budget Funds in 2010 Table 17: The amount of funds allocated to parties for the 2010 local elections59 PARTY Socialist People’s Party Coalition for European Plužine Coalition for Better Piva Yugoslav Communist Party of Montenegro (JKPCG), Mirko, Vuković Party of Serb Radicals TOTAL

20% 132.23 132.23 132.23

80% 1,498.60 528.90 528.90

TOTAL 1,630.83 661.13 661.13

132.23

88.15

220.30

132.23 661.15

0.00 2,644.55

132.23 3,305.70

REGULAR FINANCING The projected 2010 Municipal Budget of Plužine amounted to €12,383,800.00, whereas, according to the formula, the Operating Budget was €2,203,800.00. The projected amount to be transferred to po litical parties, factions and associations was €35,000.0060 total, i.e. 1.58% of the 2010 Operating Budget. Upon the Ordinance for the 2010 Budget Plan Revision of Plužine Municipality, the Budget was re duced to €3,403,000.00 and the Operating budget was reduced to €1,599,000.00. The amount pro jected for political parties, factions and associations was €52,000.0061 total, i.e. 3.25% of the 2010 Operating Budget.

Table 18: Funds disbursed for regular financing of political parties in 201062 PARTY JANUARY - MAY 2010 Serb List – Andrija Mandić Citizens Group – „By the List for Piva– Radenko Deno Damjanović“ Democratic Serb Party People’s Party League of Communists of Yugoslavia – Montenegro Plužine (SKJ – RCG – Plužine) – Mirko Vuković JUNE - DECEMBER 2010 Socialist People’s Party Coalition for European Plužine DPS, SDP Coalition „Together for Better Piva“ YCPM (JKPCG) – Mirko, Vuković TOTAL

AMOUNT (IN €) 1,455.70 952.10 700.30 448.55 448.55 9,892.25 4,626.69 2,667.49 846.37 22,038.00

The amount reached after addition of disbursed amounts as stated under the Analytical Records was €22,038.00, i.e. 1.00% of the 2010 Operating Budget and was in line with the Law; however, the sum did not match the amounts intended for political parties, factions and associations as stated under the Appropriation Ordinance for the 2010 Budget and the Ordinance for the Revision of the 2010 Municipal Budget Pan of Plužine respectively. The final analysis of financing the regular activities of parties in Plužine Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved. 59 60

Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Plužine, Official Gazette of Montenegro Municipal Ordinances No. 002/1013 dated January 14, 2010. Ordinance for the Revision of the 2010 Municipal Budget Plan of Plužine, Official Gazette of Montenegro Municipal Ordinances No. 001/11166 dated January 12, 2011. Official data obtained on the basis of the Law on the Free Access to Information.

Pljevlja Municipality

18.

Pljevlja Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance of Pljevlja Municipality, based on the Decisions Nos. 0603286 and 0603287 dated February 24, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Pljevlja municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending cumulative amounts for financing of po litical parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Law on Financing of Political Parties.63 Accordingly, for covering the cost of election campaigns for the local elections in Pljevlja Municipality, 0.15%, i.e. €13,475.03 should have been allocated from the Operating Budget projected to amount to €8,983,354.00 for that year. According to the data under the Analytical Records provided by the relevant Pljevlja municipal au thority, for covering the expenses of the election campaigns for the election of councilors €13,475.02 were disbursed.

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Financing to Political Parties from Private and Budget Funds in 2010 The analysis of the received documents has shown that the distribution of those funds was according to 20% 80% formula.64

Table 19: The amount of funds allocated to parties for the 2010 local elections65 PARTY Coalition „For European Pljevlja“ Dr Filip Vuković Coalition „Better Pljevlja – Better Montenegro“ Serb radical party, dr. Vojislav Šešelj TOTAL

20% 898.34 898.34 898.34 2,695.02

80% 5,236.00 5,544.00 0.00 10,780.00

TOTAL 2,940.02 2,264.12 898.34 13,475.02

The comparison of the Analytical Records and the documents published in the Official Gazette, we have concluded that political parties were disbursed €13,475.02 total, for covering the cost of election campaign for the election of councilors which matched the amount prescribed by the Law for the purpose.

REGULAR FINANCING The projected 2010 Municipal Budget of Pljevlja was €12,679,015.00, whereas, according to the for mula, the Operating Budget was €8,983,354.00. The projected amount to be transferred to political parties, factions and associations was €101,827.0066, i.e. 1.13% of the 2010 Operating Budget. Upon the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Pljevlja, the Budget was reduced to €9,618,320.00, the Operating Budget was reduced to €7,113,320.00, whereas the amount projected for political parties and associations was increased to €171,897.9167, i.e. to 2.42% of the Operating Budget.

Table 20: Funds disbursed for regular financing of political parties 201068 PARTY New Serb Democracy Democratic Party of Socialists Movement for Changes Socialist People’s Party Democratic Serb Party TOTAL

AMOUNT (IN €) 13,722.68 8,370.96 8,138.52 5,663.85 1,736.69 37,659.70

Upon comparing the Analytical Records and the documents provided by relevant Pljevlja municipal authority, we have concluded that political parties in that Municipality were disbursed €37,659.70 in 2010, i.e. 0.53% of the Operating Budget – which is considerably lower than the projected amount. The final analysis of the financing of regular political party activities in Pljevlja Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

64 65 66

More details on the criteria for the allocation of funds may be found in Chapter 25 – Analysis of Legislative Framework Official data obtained on the basis of the Law on the Free Access to Information. OAppropriation Ordinance for the 2010 Municipal Budget of Pljevlja, Official Gazette of Montenegro – Municipal Ordinances, No. 015/1083 dated April 22, 2010. Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Pljevlja, Official Gazette of Montenegro – Municipal Ordinances, No.005/11116 dated January 28, 2011. Official data obtained on the basis of the Law on the Free Access to Information.

Podgorica, Administrative Capital

19.

Podgorica, Administrative Capital

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance of Podgorica, Administrative Capital, based on the Decisions Nos. Up:402/111255/1 and Up:402/111256/1 dated February 24, 2011 and the Letters Nos. 05402/111255/2 and 05402/111256/2 dated March 02, 2011, as well as the official documents published in the Of ficial Gazette of Montenegro – Municipal Ordinances.

ELECTIONS OF COUNCILORS Election of Councilors of the Town Council of the Podgorica Administrative Capital May 23, 2010

Financing to Political Parties from Private and Budget Funds in 2010

ELECTIONS OF COUNCILORS GOLUBOVCI AND TUZI Election of councilors to the Town District Council of Golubovci was held on May 23, 2010, and repeated on October 17, 2010.

Election of councilors to the Town District Council of Tuzi was held on May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Law on Financing of Political Parties.69 Accordingly, for covering the cost of election campaigns for the local elections in Podgorica, 0.15%, i.e. €58,503.00 should have been allocated from the Municipal Operating Budget projected to amount to €39,002,000.00 for that year. According to the data contained in the Analytical Records provided by the relevant Podgorica mu nicipal authority, for covering the expenses of the election campaigns for the election of councilors €58,503.00 were allocated which is 0.15% of the Operating Budget and is in line with the Law. 69

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Podgorica, Administrative Capital After analysis of the received documents, we have found that the allocation of those funds was done according to 20%80% formula.70 The funds disbursed to the confirmed electoral lists and parties with seats won in the election held on May 23, 2010 are given as cumulative for Podgorica Municipality and Town Districts of Tuzi and Golubovci respectively.

Table 21: The amount of funds allocated to parties for the 2010 local elections71 PARTY Coalition „For European Podgorica, Golubovci and Tuzi“ Better Podgorica Better Montenegro – Better Malesija SDP „Right Choice“, prof.Vujica Lazović, Golubovci, Tuzi Coalition for Malesija72 Gjokaj Muhamed Party of Serb Populist – Dobrilo Dedeić Fatherland Serbian Party UKUPNO

20% 2,507.25 2,507.25 2,507.25 1,671.75 835.75 835.75 835.75 11,700.75

80% 22,933.18 16,848.86 3,276.17 3,276.17 468.02 0.00 0.00 46,802.40

TOTAL 25,440.43 19,356.11 5,783.42 4,947.92 1,303.77 835.75 835.75 58,503.15

Table 22: The funds disbursed for the repeated election in Town District of Golubovci, held on October 17, 201073 PARTY „For European Golubovci“ Better Podgorica – Better Montenegro – Better Malesija TOTAL

20% 835.75 835.75 1,671.50

80% 5,616.28 4,680.24 10,296.52

TOTAL 6,452.03 5,515.99 11,968.02

REGULAR FINANCING The projected 2010 Budget of Podgorica Administrative Capital was €88,228,200.00, and the Oper ating Budget was €39,002,000.00. The projected amount to be transferred to political parties, fac tions and associations was €390,000.0074, i.e. 1.00% of the 2010 Operating Budget – which is in line with the Law. Upon Amendments and Supplements, the 2010 Budget of Podgorica Administrative Capital was reduced to €73,672,900.00, whereas, according to the formula, the Operating Budget was €35,872,040.00. The projected amount to be transferred to political parties, factions and associa tions was €360,000.0075, i.e. 1.00% of the 2010 Operating Budget.

70 71 72 73 74

More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework. Official data obtained on the basis of the Law on the Free Access to Information. List for Tuzi. Official data obtained on the basis of the Law on the Free Access to Information. Appropriation Ordinance for the 2010 Municipal Budget of Podgorica, Administrative Capital, Official Gazette of Montenegro Municipal Ordinances No. 041/0058 dated December 22, 2009. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Podgorica, Administrative Capital, Official Gazette of Montenegro Municipal Ordinances No. 041/1072 dated December 21, 2010

Financing to Political Parties from Private and Budget Funds in 2010 Table 23: Funds disbursed for regular financing of the political parties holding seats on the Council of Administrative Capital, JanuaryDecember 201076 PARTY Democratic Party of Socialists Socialist People’s Party New Serb Democracy Social Democratic Party Movement for Changes People’s Party Democratic Serb Party Albanian Alternative Party of Pensioners, Disable People and Social Justice Liberal Party Democratic Center Bosniak Party Serb Radical Party Radonjić Nada – Independent Councilor Radunović Slobodan Independent Councilor Tošić Zdravko Independent Councilor Dr.Jovović Predrag Independent Councilor Dr Darko Radulović Independent Councilor Pejović Dušan Independent Councilor Mr.Krkeljić Tatjana Independent Councilor Batrićević Nebojša Independent Councilor Nenezić Ljubiša Independent Councilor Serb People’s Party People’s Socialist Party TOTAL

AMOUNT (IN €) 78,900.69 23,830.89 16,916.85 16,709.62 4,656.54 4,656.54 4,380.06 2,736.64 2,736.64 2,736.64 2,736.64 2,560.44 1,919.90 1,095.88 1,095.88 1,095.88 1,095.88 1,095.88 1,095.88 1,095.88 1,095.88 1,095.88 625.41 190.49 186,842.30

REGULAR FINANCING GOLUBOVCI AND TUZI The overview of funds disbursed to the parties holding seats in Town District Councils of Golubovci and Tuzi respectively cane be found in Tables bellow.

Table 24: Funds disbursed for regular financing of the political parties holding seats on the Town District Council of Golubovci, JanuaryDecember 201077 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party Serb Radical Party People’s Socialist Party Movement for Changes TOTAL

76 77

Official data obtained on the basis of the Law on the Free Access to Information. Official data obtained on the basis of the Law on the Free Access to Information.

AMOUNT (IN €) 38,128.96 13,633.58 5,415.67 4,656.47 3,382.17 2,605.90 67,822.75

Podgorica, Administrative Capital

Table 25: Funds disbursed for regular financing of the political parties holding seats on the Town District Council of Tuzi, JanuaryDecember 201078 PARTY Democratic Party of Socialists Civic Initiative Tuzi Democratic Union of Albanians Democratic Alliance in Montenegro Bosniak Party Socialist People’s Party Social Democratic Party List for Tuzi TOTAL

AMOUNT (IN €) 16,328.24 13,970.35 12,874.46 9,040.07 6,476.16 5,324.00 4,656.54 2,736.64 71,406.46

After analysis of the available documents, we have concluded that the Budget of Podgorica Admin istrative Capital disbursed to political parties €326,071.51, which was €63,928.49 less than pro jected under the Budget. The final analysis of financing the regular activities of parties in Podgorici Administrative Capital will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

Official data obtained on the basis of the Law on the Free Access to Information.

Financing to Political Parties from Private and Budget Funds in 2010

Rožaje

20.

Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economy of Rožaje Municipality, based on the Decisions Nos. 171 and 171 dated February 22, 2011 and the Letters Nos. 189 and 190 dated February 28, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Rožaje municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on financing of political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.79 Accordingly, for covering the cost of election campaigns for the local elections in Rožaje, 0.15%, i.e. €4,771.09 should have been allocated from the Municipal Op erating Budget projected to amount to €3,180,731.39 for that year. According to the Analytical Records provided by Rožaje Municipality, for covering the expenses of the election campaigns for the election of councilors €4,611.99 were disbursed, i.e. 0.14% of the Operating Budget – which is in line with the Law.

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Rožaje Municipality After analysis of the received documents, we have found that the allocation of those funds was done according to 20%80% formula.80

Table 26: The amount of funds allocated to parties for the 2010 local elections81 PARTY Democratic Party of Socialists Bosniak Party Social Democratic Party Bosniak Democratic Party Socialist People’s Party Movement for Changes TOTAL

20% 159.03 159.03 159.03 159.03 159.03 0.00 795.15

80% 2,020.68 1,010.34 785.82 0.00 0.00 0.00 3,816.84

TOTAL 2,179.71 1,169.37 944.85 159.03 159.03 0.00 4,611.99

The document provided by Rožaje municipal authority stated that €159.03 projected to fund the electoral list of Movement for Changes were not disbursed, since the Party had not provided their account number to which the said funds were to be credited.

REGULAR FINANCING The projected 2010 Municipal Budget of Rožaje amounted to €4,902,000.00, whereas, according to the formula, the Operating Budget was €3,180,731.39. The projected amount to be transferred to po litical parties was €31,492.3982 total, i.e. 0.99% of the 2010 Operating Budget. Upon Amendments and Supplements, the 2010 Municipal Budget of Rožaje was reduced to €3,868,000.00, with the Operating Budget amounting to €2,966,246.47 The amount projected to be transferred to political parties was €29,368.7783, i.e. 0.99% of the 2010 Operating Budget.

Table 27: Funds disbursed for regular financing of political parties in 201084 PARTY Democratic Party of Socialists Bosniak Party Social Democratic Party Bosniak List Socialist People’s Party Liberal Party TOTAL

AMOUNT (IN €) 5,974.66 5,965.75 5,310.34 609.84 403.78 403.78 18,668.15

After the analysis of the received documents, we have concluded that Rožaje Municipality disbursed €10,700.62 less than projected under the Budget. The final analysis of financing the regular activities of parties in Rožaje Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

80 81 82

More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework. Official data obtained on the basis of the Law on the Free Access to Information. Proposal Appropriation Ordinance for the 2010 Municipal Budget of Rožaje, Official Gazette of Montenegro Municipal Ordinances No. 003/10120 dated January 21, 2010. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Rožaje, Official Gazette of Montenegro Municipal Ordinances No. 041/1094 dated December 21, 2010. Official data obtained on the basis of the Law on the Free Access to Information.

Financing to Political Parties from Private and Budget Funds in 2010

21.

Šavnik Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Local Government of Šavnik Municipality, based on the Decisions Nos. 02217 and 02218 dated February 28, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Šavnik municipal authority provided, within the legally prescribed deadline, the infor mation of the regular financing of political parties in the Municipality in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Law on Financing of Political Parties.85 Accordingly, for covering the cost of election campaigns for the local elections in Šavnik, 0.15%, i.e. €1,361.38 should have been allocated from the Operating Budget projected to amount to €907,584.36. The analysis of the received documents has shown that the distribution of those funds was according to 20% 80%86 formula.

Table 28: The amount of funds allocated to parties for the 2010 local elections87 PARTY Coalition „For European Šavnik“ Coalition „Better Šavnik Better Montenegro“ TOTAL 85 86 87

20% 137.23 137.23 274.46

80% 567.07 531.64 1,098.71

TOTAL 704.30 668.87 1,373.17

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08. More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework Official data obtained on the basis of the Law on the Free Access to Information.

Šavnik Municipality According to the data under the Analytical Records provided by the relevant Šavnik municipal au thority, for covering the expenses of the election campaigns for the election of councilors, €1,373.17 were disbursed which is 0.15% of the Operating Budget and is entirely in line with the Law.

REGULAR FINANCING The projected 2010 Municipal Budget of Šavnik was €1,024,584.36, whereas, according to the for mula, the Operating Budget was €907,584.36. The projected amount to be transferred to political parties and factions was €5,800.0088 total, i.e. 0.64% of the 2010 Operating Budget. Upon Amendments and Supplements, the 2010 Municipal Budget of Šavnik was €1,093,442.22 whereas, according to the formula, the Operating Budget was €984,442.22. The projected amount to be trans ferred to political parties and factions was €5,800.0089 total, i.e. 0.59% of the 2010 Operating Budget. As stated under the Decision that the relevant municipal authority of Šavnik provided CDT with, there was no disbursement to political parties for financing of their regular activities in 2010.

The scanned Decision made by the Secretariat for Local Government of Šavnik Municipalityas of February 28, 2011

After acting upon the Request pre sented pursuant to paragraph 1 of Ar ticle 13 of the Law on the Free Access to information by Center for Demo cratic Transition NGO, we are inform ing you that Šavnik Municipality did not disburse any funds to political par ties for financing their regular activi ties during the reporting period indicated under the request.

Appropriation Ordinance for the 2010 Municipal Budget of Šavnik, Official Gazette of Montenegro – Municipal Ordinances, No. 013/0925 dated April 13, 2009. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Šavnik, Official Gazette of Montenegro – Municipal Ordinances, No. 040/0983 dated December 17, 2009.

Financing to Political Parties from Private and Budget Funds in 2010

22.

Tivat Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economic Development of Tivat Municipality, based on the Decision No. 0801UP 20/1 dated April 16, 2010 and the Letter No. 0809UP6/2 dated February 22, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Tivat municipal authority allowed and ensured CDT, within the legally prescribed dead line, the access to the required information by sending the accurate data on the financing to political parties in 2010.

REGULAR FINANCING The projected 2010 Budget of Tivat Municipality amounted to €9,634,910.00, whereas, according to the formula, the Operating Budget was €4,194,910.00. The amount projected to be transferred to political parties, factions and associations was €42,000.0090 total, i.e. 1.0% of the 2010 Operating Budget.

Table 29: Funds disbursed for regular financing of political parties in 201091 PARTY Democratic Party of Socialists Social Democratic Party Serb People’s Party Croatian Civic Initiative Movement for Changes Socialist People’s Party People’s Party Democratic Serb Party Serb Radical Party Liberal Party TOTAL

AMOUNT (IN €) 10,080.92 3,662.36 3,662.36 2,860.04 2,730.82 2,057.72 1,255.40 1,255.40 1,255.40 1,255.40 30,075.82

After the analysis of the provided documents, we have concluded that Tivat Municipality disbursed €11,924.18 less than projected under the Budget. The final analysis of the financing of regular activities of political parties in Tivat Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

Appropriation Ordinance for the 2010 Municipal Budget of Tivat, Official Gazette of Montenegro Municipal Ordinances No. 002/1065 dated January 14, 2010. Official data obtained on the basis of the Law on the Free Access to Information.

Ulcinj Municipality

23.

Ulcinj Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Budget of Ulcinj Municipality, based on the Decisions Nos. 04943/211 and 04 944/211 dated April 21, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. After the appeal lodged to the Chief Administrator, the relevant Ulcinj municipal authority provided us with the required information.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010 and Election repeated on October 17, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under the Law on Financing of Political Parties.92 Accordingly, for covering the cost of election campaigns for the local elections in Ulcinj, 0.15%, i.e. €6,160.50 should have been allocated from the Municipal Oper ating Budget projected to amount to €4,107,000.00 for that year. After the appeal lodged to the Chief Administrator, the Ulcinj municipal authority in charge made the Decision No. 04944/211, pursuant to which an access to the pieces of information concerning the financing of election campaigns from the Budget was allowed. Regardless the legal expenses were paid, the relevant Ulcinj municipal authority has not provided us with the required information. Consequently, we are now forced to bring an action against Ulcinj Municipality. 92

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.

Financing to Political Parties from Private and Budget Funds in 2010

REGULAR FINANCING The projected 2010 Municipal Budget of Ulcinj was €12,908,000.00, whereas, according to the for mula, the Operating Budget was €4,107,000.00. The projected amount to be transferred to political parties, factions and associations was €50,000.0093 total, i.e. 1.21% of the 2010 Operating Budget. Upon Amendments and Supplements, the 2010 Municipal Budget of Ulcinj was reduced to €4,848,900.00, whereas, according to the formula, the Operating Budget was €4,276,900.00. The pro jected amount to be transferred to political parties, factions and associations was €10,000.0094 total, i.e. 0.23% of the 2010 Operating Budget – which is far below the legal minimum. Upon the lodged appeal, the Chief Administrator of Ulcinj Municipality made the Decision No. 14 36/2011 to order the Secretariat for Finance and Budget to act upon the request tabled by the Center for Democratic Transition. The Secretariat rejected the request presented by the Center for Demo cratic Transition, explaining that they had not disbursed any funds projected for the regular activities of political parties due to a financial crisis in the Municipality in 2010.

The scanned Decision made by the Secretariat for Finance and Budget of Ulcinj Municipality as of April 21, 2011 After acting upon the Request, this authority has found that no funds were disbursed from the Municipal Budget to political parties holding seats on the Council of Ulcinj Municipality between January the 1st and December the 31st 2010, due to the financial crisis faced by the Municipality during that time.

Appropriation Ordinance for the 2010 Municipal Budget of Ulcinj, Official Gazette of Montenegro – Municipal Ordinances, No. 001/09132 dated January 15, 2009. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of , Official Gazette of Montenegro – Municipal Ordinances, No. 003/10153 dated January 21, 2010.

Žabljak Municipality

24.

Žabljak Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economy of Žabljak Municipality, Based on the Decision No. 401/1103263 dated February 28, 2011 and the Decision No. 40/1103262 dated April 20, 2011, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Žabljak municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on the financing to political parties in 2010.

ELECTIONS OF COUNCILORS Results of the Election of Councilors May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Law on Financing of Political Parties.95 Accordingly, for covering the cost of election campaigns for the local elections in Žabljak Municipality, 0.15%, i.e. €1,679.00 should have been allocated from the Operating Budget projected to amount to €1,119,560.00 for that year. According to the data under the Analytical Records provided by the relevant Žabljak municipal au thority, for covering the expenses of the election campaigns for the election of councilors, the exact amount as prescribed by the Law was projected, whereas €1,552.09 were disbursed. The funds intended for the financing of „With Whole Hearth for Žabljak“ electoral list were not dis bursed, since the Party had not provided the account number to which they were to be credited.96 95 96

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10. Pursuant to Article 17 Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08 and 49/10)

Financing to Political Parties from Private and Budget Funds in 2010 The analysis of the received documents has shown that the distribution of those funds was according to 20% 80% 97 formula.

Table 30: The amount of funds allocated to parties for the 2010 local elections98 PARTY For Our Žabljak Coalition „Better Žabljak Better Montenegro“ Coalition „For European Žabljak“ With Whole Hearth for Žabljak TOTAL

20% 83.97 83.97 83.97 0.00 251.91

80% 693.43 563.41 43.34 0.00 1,300.18

TOTAL 777.40 647.38 127.31 0.00 1,552.09

REGULAR FINANCING The projected 2010 Municipal Budget of Žabljak was €2,120,560.00, whereas, according to the for mula, the Operating Budget was €1,119,560.00. For political parties and councilor clubs, the amount of €14,500.0099 was projected, i.e. 1.29% of the 2010 Operating Budget. The relevant Žabljak municipal authority provided us with the cumulative amounts disbursed to political parties in 2010. The following Table shows the official data concerning the disbursed funds. The data were obtained based on the Law on the Free Access to Information.

Table 31: Funds disbursed for regular financing of political parties 2010100 PARTY Democratic Party of Socialists Socialist People’s Party Serbian People’s Party People’s Party Democratic Serb Party Social Democratic Party Serb Radical Party TOTAL

AMOUNT (IN €) 2,777.11 1,453.21 1,015.12 507.56 507.56 318.42 318.35 2,760.00

After the analysis of the data provided by the relevant Žabljak municipal authority, we can conclude that the municipal authority disbursed €7,602.67 less than projected under the Budget. The final analysis of the financing of regular political party activities in Žabljak Municipality will be done after the Annual Statement of Accounts of the 2010 Budget is approved.

97 98 99

100

Analysis of Legislative Framework

25.

Analysis of Legislative Framework

FINANCING OF REGULAR ACTIVITIES OF POLITICAL PARTIES Law on Financing of Political Parties (“Official Gazette of Montenegro”, Nos. 49/08, 49/10) In their session held on July 29, 2008, the Parliament of Montenegro approved the new Law on Fi nancing of Political Parties that was published in the Official Gazette of Montenegro on August 15, 2008 and entered into force the day after its publishing. Upon entering into force of the said Law, the Law on Financing of Political Parties (“Official Gazette of the Republic of Montenegro”, Nos. 21/04, 33/05 and 47/06) ceased to be applicable. The new Law introduced new provisions governing the financing of the regular activities of political parties holding seats in the Parliament, by its Article 8 that reads as follows: „Budget funds for financing regular activities of parliamentary parties in the Parliament may neither be less than 0.2% nor more than 0.4% of the total budget funds reduced by the capital budget funds and national funds budgets, i.e. by the Operating Budget of a year in which the budget is adopted. Budget funds for financing regular activities of the parties holding seats in municipal councils may nei ther be less than 0.5% nor more than 1.00% of the total budget funds reduced by the capital budget funds and national funds budgets, i.e. by the Operating Budget of a year in which the budget is adopted. The 15.00% of the funds referred to under paragraph 1 and 2 of this Article shall be allocated in equal amounts to parliamentary parties holding seats in the Parliament and/or municipal councils, whereas remaining 85.00% of the funds shall be distributed proportionate to the overall number of seats in the Parliament and/or municipal councils at the time of such allocation. The Ministry and/or the local government body in charge of finance (hereinafter referred to as the: local government body) shall transfer the funds referred to under paragraphs 1 and 2 of this Article to parliamentary parties monthly, in arrears, within five days from the beginning of any month.“ As it can be seen from the quoted Article, the new Law introduced several significant amendments, as follows: • the funds allocated for the regular activities of political parties are subject to the legally pre scribed maximum limits of 0.4% and 1.00% relative to the national budget and municipal budg ets respectively; • the funds allocated for the activities of political parties are no longer calculated relative to the total Budget, but they are calculated relative to the current one; • the minimum and maximum amounts expressed as percentages proscribed by the Law are no longer equal at both the national and the municipal level; • the formula based on which the allocation of funds to the parties holding seats was changed, in favor of those parties which win more deputy of councilor seats in the election.

Financing to Political Parties from Private and Budget Funds in 2010 In their session held on August 04, 2010, the Parliament approved amendments and supplements to the Law on Financing of Political Parties (Official Gazette of Montenegro, No. 49/10 as of August 13, 2010). The Law was amended only in the section governing the percentage of the Budget funds appropriated for the financing of the regular activities of political parties, as well as that governing the financing of electoral campaigns. Thus, according to the new provision: The Budget funds for financing regular activities of the parties holding seats in the Parliament shall be 0.5% of the total budget funds reduced by the capital budget funds and national funds budgets, i.e. by the Operating Budget of a year in which the budget is adopted. The Budget funds for financing regular activities of the parties holding seats in municipal councils shall be 1.00% of the total budget funds reduced by the capital budget funds and national funds budgets, i.e. by the Operating Budget of a year in which the budget is adopted. Besides, also the percentage of the amount appropriated for the financing of electoral campaigns for the election of deputies and, instead of 0.15% of the Operating Budget, it is now provided that 0.25% of the Operating Budget shall be ensured for electoral campaign financing. The amended provisions are not referred to under the findings of the present Publication, since the amendments were made in 2010.

FINANCING THE CAMPAIGN FOR THE ELECTION OF DEPUTIES, COUNCILORS, MUNICIPAL MAYORS AND MANAGERS AND THE PRESIDENT OF MONTENEGRO Law on Financing of Political Parties (“Official Gazette of Montenegro”, Nos. 49/08, 49/10) The financing of electoral campaigns from the Budget funds is governed under Articles 11, 12, 13, 14 and 15 of the foregoing Law, which read as follows: „Allocation of Budget Funds Article 11 The Budget funds for financing of the election campaign referred to under Article 10 of the present Law shall be allocated, in a calendar year in which ordinary elections are held, as 0.15% of the Oper ating Budget for the year in which budget is adopted. The funds referred to under paragraph 1 above amounting to 20.00% shall be allocated in equal amounts to the applicants of the lists of candidates within eight days from the day of electoral list con firmation. The funds amounting to 80.00% shall be allocated to the applicants of the lists of candidates propor tionate to the number of seats won. The funds referred to under paragraph 3 above shall be allocated within 15 days as of the day when the applicants of the lists of candidates have submitted to a competent election commission the state ments of the funds raised and expended for election campaign and the reports by the Ministry’s au ditors on their audits completed.

Analysis of Legislative Framework Fixed Budget Funds Article 12 In addition to the funds referred to under Article 11 of the Present law, for covering election campaign expenditures in a year when ordinary elections are held, the Budget funds shall be projected in the amount to 0.05%. They shall be allocated to the applicants of the lists of candidates who won seats in proportion to the number of seats won, provided that they have raised two time the amount of funds they are entitled to as referred to under paragraph 2 of Article 11 hereof. The applicants of the lists of candidates who have raised, from private sources, an amount that is less than the one referred to under paragraph 1 above and who have won seats shall be entitled to a pro portionally smaller amount of the Budget funds referred to under paragraph 1 above. Reduction of the Budget Funds Article 13 If several elections are held at the same time, the amount referred to under paragraph 1 of Article 11 and under Article 12 hereof, which is set aside for the financing of election campaigns shall be reduced by 1/3 at all levels. Article 14 The Ministry and/or local government body shall allocate the funds referred to under Articles 11 and 12 hereof to the applicants of the lists of candidates after a competent election commission has rendered the notification on the fulfillment of the requirements referred to under Articles 11 and 12 hereof. Extraordinary elections Article 15 If any extraordinary elections are held, the funds necessary for election campaign expenditures shall be provided from the current Budget reserve requirement.“ As it can be seen in Article 11 quoted above, the new Law prescribes the appropriation of the funds for financing of the campaign according to “20% 80%” formula, where 20% of the total amount is to be allocated in equal amounts to the applicants of declared lists of candidates, and 80% to the applicants of the lists of candidates which have won seats, in proportion to the number of seats won. It is interesting to note that Article 12, which regulates fixed Budget funds to which the lists of candidates that have won seats and that, at the same time, have raised the prescribed amount of funds from private sources are entitled, was applied to the appropriation of funds neither after the parliamentary nor after the local elections, although there certainly were parties which fulfilled the stipulated condition. That can be an indicator of the need to redefine this provision, or to devise a better way of the application thereof.

Financing to Political Parties from Private and Budget Funds in 2010

The Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers („Official Gazette of Montenegro“, No. 08/09) The provisions of the Law on Financing the Campaign for the Election of the President of Montene gro, Municipal Mayors and Managers („Official Gazette of Montenegro“, No. 08/09) were applied to the March 29, 2009 elections of the municipal managers of Tivat and Herceg Novi respectively. The financing of the campaigns from the Budget funds is governed by Articles 5 and 6 of the forego ing Law, which read as follows: „Budget Funds Amount Article 5 For a part of election campaign expenditures, the funds amounting to from 0.05% to 0.1% of the total Budget funds reduced by the capital budget funds and national funds budgets (hereinafter referred to as the Operating Budget) shall be provided in a year in which ordinary elections are held. In case of any extraordinary elections, the necessary funds for the election campaign expenditures shall be provided from the current Budget reserve requirement. Appropriation of the Budget Funds Article 6 The funds referred to under paragraph 1 of Article 5 hereof shall be allocated as follows: 1) 10.00% to all the candidates whose nomination has been declared, in equal amounts and within 10 days as of the day of declaring the list of candidates; 2) 40.00% to all the candidates who win more than 10.00% of votes, in equal amounts and within 10 days as of the day of declaring the election results; 3) 50.00% to all the candidates who win the majority of votes in the elections, within 10 days as of the day of declaring the election results.“

Annexes

26.

Annexes

ANNEX A – ANALYSIS OF THE 2010 ANNUAL STATEMENTS ON PROPERTY OF POLITICAL PARTIES Source: Annual Statements on Property of Parliamentary Parties, posted on the Web Site of the State Electoral Commission, at www.rik.co.me The Annual Statement on property of Bosniak Party has revealed that the total 2010 income of the Party amounted to €155,263.60. For their regular financing, the Party received €125,102.10 from the National Budget, whereas the amount of €27,661.50 was set aside from the budgets of local commu nities. In addition to the foregoing amounts, Bosniak Party was disbursed the amount of €2,300.00 from the National and Municipial Budget funds, for election campaign expenses. When it comes to pri vate sources of funds, Bosniak Party received €200.00 from the contributions of natural persons the names of whom were not disclosed. Bosniak Party possessed movable property worth €23,500.00, with €461.02 available in the accounts of the Party, whereas the outstanding loan of this Party amounted to €43,693.00. The 2010 Statement on Property of Democratic Party of Socialists disclosed the total income of the Party for that year as the amount of €2,429,008.00. For financing of their regular activities, the Party was paid €944,462.00 from the National Budget and €362,948.00 from the budgets of local selfgov ernment units. Membership fees contributed €48,579.00, whereas return on assets amounted to €183,938.00. From the contributions from legal persons, DPS raised €9,646.00 on interests and dam ages, whereas the contributions from natural persons amounted to €654,190.00. The Statements dis closed the names of all the natural persons and their respective contributions. For electoral campaign, DPS was disbursed €64,739.00 from the public and €160,506.00 from private sources. Again, the State ment disclosed the names of all the natural persons and their respective contributions for financing of electoral campaign expenses. DPS possessed the assets the value of which amounted to €1,153,193.00, whereas movable property was estimated at €26,639.00. The accounts of this Party held €524,416.28, whereas the amount in the sub accounts amounted to €17,126.31. New Democratic Force, i.e. FORCA, reported under their 2010 Statement the total income amounting to €63,918.48. For financing of their regular activities, the National Budget disbursed €59,828.86, whereas municipal budgets did not paid anything. FORCA raised €250.00 from donations of legal per sons, whereas natural persons contributed €280.00. The names of both legal and natural contributors were not disclosed. For financing of election campaign, this Party was paid €3,559.62 from the Budget, with the balance in the Party’s accounts amounted to €1,748.11. According to the 2010 Annual Statement of the Croatian Civic Initiative, the Party had total incomes amounting to €69,030.65. The National Budget disbursed €60,654.82 to Croatian Civic Initiative, whereas municipal budgets disbursed €8,375.83 to that Party. The balance in the accounts of this Party amounted to €12,043.25.

Financing to Political Parties from Private and Budget Funds in 2010 In 2010, New Serb Democracy raised the amount of €425,651.62, NOVA was paid €267,754.13 from the National Budget, whereas the budgets of local government units disbursed €102,895.06 for financ ing of their regular activities. Membership fees contributed €8,817.00, whereas legal and natural per sons contributed €9,000.00 each to this political party. The names of the contributors were not disclosed. Further, NOVA acquired the amount of €36,524.30 from the sale of assets. The Statement has revealed that the State Electoral Commission was informed of the names of buyers of the Party’s assets. Besides, for financial expenditures of election campaign, NOVA received the funds amounting to €661.13 from the Budget.. NOVA possessed movable property worth €22,000.00, whereas the out standing loan of the Party is €102,818.85. The 2010 Statement on Property of Movement for Changes has revealed that the total income of the Party amounted to €224,703.74. For the regular activities of the Party, the National Budget and mu nicipal budgets allocated €179,581.95 and €45,121.79 respectuvely. In 2010, Movement for Changes did not make an income on other grounds. Movement for Changes had movable property worth €12,500.00, whereas the balance in the Party’s accounts was €821.15. The outstanding loan of the Party was €123,858.90. The 2010 Statement on Property of Social Democratic Party stated the total income amounting to €502,715.00. For their regular activities, SDP was disbursed €293,778.00 from the National Budget, whereas municipalities allocated €138,338.00 for the same purposes of the Party. Membership fees contributed €3,031.00, whereas SDP was allocated the amount of €8,063.00 from the Budget and €59,505.00 from natural persons. The balance in the accounts of the Party was €31,514.00. The total income of Socialist People’s Party in 2010 amounted to €588,249.98. According to the Statement on Property for the said year, Socialist People’s Party was allocated €488,508.00 for financ ing their regular activities, whereas municipal budgets allocated €50,077.69 for the need of the Party. Natural persons contributed to the Socialist People’s Party the funds that amounted to €4,120.00; however, the names of the contributors were not disclosed. For financing election campaign expenses, Socialist People’s Party was allocated €44,544.29, whereas €1,000.00 were raised from private sources. Socialist People’s Party had movable property worth €80,876.00. Further, Socialist People’s Party had the time deposit amounting to €30,000.00. The Party’s accounts balance was €11,055.04, whereas the outstanding loan was €107,711.00. Total incomes of parliamentary parties: €4,458,541.07

ANNEX B – LIST OF POLITICAL PARTIES REGIETERED IN MONTENEGRO Source : Web Site of the State Electoral Commission – www.rik.co.me POLITICAL PARTIES IN MONTENEGRO 1. BOSNIAK DEMOCRATIC PARTY OF SANDŽAK (BDS SANDŽAK) ROŽAJE Maršala Tita 14 2. CROATIAN CIVIC INITIATIVE TIVAT Druge dalmatinske br.1 3. SOCIALIST PEOPLE’S PARTY OF MONTENEGRO PODGORICA Vaka Đurovića br. 5

Annexes 4. SERBIAN RADICAL PARTY PODGORICA Oktobarske revolucije br.102 5. CIVIC PARTY OF MONTENEGRO PODGORICA IV proleterske br. 17 6. PARTY OF SERB RADICALS PODGORICA 4. jula br. 45 7. LIBERAL ALLIANCE OF MONTENEGRO CETINJE Bajova ulica br. 2 8. SOCIAL DEMOCRATIC PARTY OF MONTENEGRO PODGORICA Jovana Tomaševića bb 9. PEOPLE’S PARTY PODGORICA Vasa Raičkovića bb 10. DEMOCRATIC PARTY OF SOCIALISTS OF MONTENEGRO PODGORICA Jovana Tomaševića bb 11. SOCIALIST PARTY OF YUGOSLAVIA PODGORICA Svetozara Markovića br.45 12. DEMOCRATIC ALLIANCE IN MONTENEGRO TUZI 13. DEMOCRATIC UNION OF ALBANIANS ULCINJ Bulevar Skenderbega bb 14. DEMOCRATIC SERB PARTY PODGORICA Radnička 33 15. PARTY OF DEMOCRATIC PROSPERITY ULCINJ Đerđ Kastrioti Skenderbeg bb 16. LIBERAL PARTY OF MONTENEGRO PODGORICA Ulica Slobode 78 17. BUDVA FORUM BUDVA Mediteranska br 4 18. PEOPLE’S CONCORD OF MONTENEGRO PODGORICA Bokeška br. 6 19. DEMOCRATIC UNITY OF ALBANIANS IN MONTENEGRO ULCINJ Đerane br. 1 20. NEW DEMOCRATIC FORCE, FORCA ULCINJ Skenderbegova bb

Financing to Political Parties from Private and Budget Funds in 2010 21. DEMOCRATIC COMMUNITY OF MUSLIMS AND BOSNIAKS IN MONTENEGRO PODGORICA Gavrila Principa 47 22. BOSNIAK PARTY ROŽAJE Trg IX crnogorske brigade bb 23. PARTY OF JUSTICE OF MONTENEGRO NIKŠIĆ Oštrovac 119 24. DEMOCRATIC PARTY OF UNITY PODGORICA Ivana Vujoševića 42 25. DEMOCRATIC PARTY OF MONTENEGRO PODGORICA Jerevanska 38 26. MOVEMENT FOR CHANGES PODGORICA Bulevar Ivana Crnojevića 107/1 27. BOSNIAK DEMOCRATIC PARTY OF MONTENEGRO BIJELO POLJE M.Hadrovića 14 28. GREEN PARTY OF MONTENEGRO CETINJE Crnogorskih junaka 172 29. PARTY FOR GUSINJE GUSINJE bb 30. DEMOCRATIC CENTER OF BOKA HERCEG NOVI Njegoševa 111 31. ALBANIAN ALTERNATIVE TUZI bb 32. PARTY OF PENSIONERS, DISABLED PEOPLE AND SOCIAL JUSTICE OF MONTENEGRO PODGORICA Moskovska bb 33. NEW SERB DEMOCRACY PODGORICA Vojislava Grujića 4 34. FATHERLAND SERBIAN PARTY PODGORICA Vijenac Kosovskih junaka 3 35. DEMOCRATIC CENTER PODGORICA Hercegovačka 13 36. PARTY OF SERB POPULISTS PODGORICA Ul. Omladinskih brigada 3 37. YUGOSLAV COMMUNIST PARTY OF MONTENEGRO PODGORICA Đoka Miraševića 57

Annexes

ANNEX C – LIST OF STATEMENTS THAT HAVE NOT BEEN PUBLUSHED ON THE WEB SITE OF THE STATE ELECTORAL COMMISSION Source: Web Site of the State Electoral Commission – www.rik.co.me. Statements on the Origin, Amount and Structure of Funds Raised and Expended for Election Campaigns of the following electoral lists have not been published on the Web Site of the State Elec toral Commission: Elections for Councilors to Municipal Council of Andrijevica 1. SDPFOR A BETTER TOMORROW Elections for Councilors to Municipal Council of Bar 2. Civic Party Elections for Councilors to Municipal Council of Bijelo Polje 3. Independent Citizens Group 4. Party of Serb Populists – LIST FOR SERBIAN PEOPLE Elections for Councilors to Municipal Council of Danilovgrad 5. Citizens Group – GIVE US BACK DANILOVGRAD Elections for Councilors to Municipal Council of Kolašin 6. Citizens Group (GG) – TOGETHER FOR KOLAŠIN – MILETA MIKAN BULATOVIĆ 7. Socialist Democratic Party (SDP) Elections for Councilors to Municipal Council of Plav 8. Democratic Alliance in Montenegro (DSUCG) – AHMET GJONBALAJ Elections for Councilors to Municipal Council of Plužine 9. SOCIALIST PEOPLE’S PARTY (SNP) 10. SERBIAN RADICAL PARTY (SRS) 11. YUGOSLAV COMMUNIST PARTY OF MONTENEGRO (JKPCG) Elections for Councilors of the Town District of Tuzi 12. BETTER MALESIJA – BETTER MONTENEGRO 13. COALITION FOR BETTER MALESIJA 14. FOR EUROPEAN TUZI (DPSDUABS) 15. SOCIALIST DEMOCRATIC PARTY (SDP) – RIGHT CHOICE Elections for Councilors of the Town District of Golubovci 16. FOR EUROPEAN GOLUBOVCI – Democratic Party of Socialists (DPS) 17. SOCIALIST DEMOCRATIC PARTY (SDP) – RIGHT CHOICE 18. BETTER ZETA – BETTER MONTENEGRO Elections for Councilors to Municipal Council of Rožaje 19. SOCIALIST PEOPLE’S PARTY – NEW SERB DEMOCRACY (SNP – NSD) 20. BOŠNJAČKA STRANKA 21. SOCIALIST DEMOCRATIC PARTY (SDP) – RIGHT CHOICE – DR IZET BRALIĆ 22. BOSNIAK DEMOCRATIC PARTY – REDŽEP KURBARDOVIĆ – LET ROŽAJE TO AGREE 23. BY MOVEMENT TO CHANGES – NEBOJŠA MEDOJEVIĆ

Financing to Political Parties from Private and Budget Funds in 2010 Elections for Councilors to Municipal Council of Ulcinj 24. CITIZENS GROUP (GG) – FOR THE WELLBEING OF ULCINJ 25. CIVIC INITIATIVE ‘PERSPECTIVE’ 26. DEMOCRATIC ALLIANCE IN MONTENEGRO (DSUCG) COALITION Elections for Councilors to Municipal Council of Žabljak 27. FOR OUR ŽABLJAK – MIRČETA TOMČIĆ 28. WITH WHOLE HEARTH FOR ŽABLJAK – CITIZENS GROUP (GG) Elections for Councilors to Municipal Council of Cetinje 29. Serbian People’s Party (SNP) 30. Liberal Party and Civic Party (LP I GP) – FOR CIVIC CETINJE It is impossible to find Statements on the Audit of Election Campaign Expenses of the 2010 elec tions on the Web Site of the State Electoral Commission, of the following electoral lists: Elections for Councilors to Municipal Council of Andrijevica 1. SOCIALIST DEMOCRATIC PARTY (SDP) – FOR BETTER TOMORROW Elections for Councilors to Municipal Council of Bar 2. Civic Party 3. Liberal Party of Montenegro – LIBERALS OF BAR 4. Bar Bosniaks and Muslems List – NOW AND IN THE FUTURE Elections for Councilors to Municipal Council of Berane 5. Bosniak Party 6. Party of Serb Radicals (SSR) – FOR SERBIAN BERANE Elections for Councilors to Municipal Council of Bijelo Polje 7. Bosniak Party 8. Independent Citizens Group 9. Party of Serb Populists – LIST FOR SERBIAN PEOPLE Elections for Councilors to Municipal Council of Danilovgrad 10. Citizens Group – GIVE US BACK DANILOVGRAD Elections for Councilors to Municipal Council of Kolašin 11. Socialist Democratic Party (SDP) 12. Citizens Group (GG) – TOGETHER FOR KOLAŠIN – MILETA MIKAN BULATOVIĆ Elections for Councilors to Municipal Council of pLAV 13. Democratic Union of Albanians (DUA) 14. FORCA 15. BOSNIAK PARTY 16. Democratic Alliance in Montenegro (DSUCG) – AHMET GJONBALAJ Elections for Councilors to Municipal Council of Pljevlja 17. PARTY OF SERB RADICALS Elections for Councilors to Municipal Council of Plužine 18. Serbian Radical Party (SRS) 19. Yugoslav Communist Party of Montenegro (JKPCG)

Annexes Elections for Councilors to Municipal Council of Podgorica 20. COALITION FOR MALESIJU 21. PARTY OD SERBA POPULISTS – DOBRILO DEDEIĆ 22. SOCIAL DEMOCRATIC PARTY (SDP) – RIGHT CHOICE – PROF. DR VUJICA LAZOVIĆ Elections for Councilors to Town District of Tuzi 23. CITIZENS GROUP (GG) – LIST FOR TUZI – MUHAMED GJOKAJ 24. BETTER MALESIJA – BETTER MONTENEGRO 25. COALITION FOR BETTER MALESIJA 26. FOR EUROPEAN TUZI (EMOCRATIC PARTY OF SOCIALISTS – DEMOCRATIC UNION OF ALBANIANS – BOSNIAK PARTY /DPSDUABS/) 27. SOCIALIST DEMOCRATIC PARTY (SDP) – RIGHT CHOICE Elections for Councilors to Town District of Golubovci 28. FOR EUROPEAN GOLUBOVCI – DEMOCRATIC PARTY OF SOCIALISTS (DPS) 29. SOCIAL DEMOCRATIC PARTY (SDP) – RIGHT CHOICE 30. FATHERLAND SERBIAN PARTY (OSS) – DR ALEKSANDAR STAMATOVIĆ – FOR SERBIAN ZETA PEOPLE 31. BETTER ZETA – BETTER MONTENEGRO Elections for Councilors to Municipal Council of Rožaje 32. BOSNIAK PARTY 33. SOCIALIST DEMOCRATIC PARTY (SDP) – RIGHT CHOICE – DR IZET BRALIĆ 34. BOSNIAK DEMOCRATIC PARTY – REDŽEP KURBARDOVIĆ – LET ROŽAJE TO AGREE 35. BY MOVEMENT TO CHANGES – NEBOJŠA MEDOJEVIĆ Elections for Councilors to Municipal Council of Ulcinj 36. SOCIALIST DEMOCRATIC PARTY (SDP) 37. PARTY OF DEMOCRATIC PROSPERITY 38. CITIZENS GROUP (GG) – FOR THE WELLBEING OF ULCINJ 39. BOSNIAK PARTY 40. CIVIC INITIATIVE ‘PERSPECTIVE’ 41. DEMOCRATIC ALLIANCE IN MONTENEGRO (DSUCG) Elections for Councilors to Municipal Council of Ulcinj – repeated elections 42. Democratic Union of Albanians PARTY OF DEMOCRATIC PROSPERITY (DUA – PDP) – TOGETHER FOR THE FUTURE 43. FORCA 44. BOSNIAK PARTY Elections for Councilors to Municipal Council of Žabljak 45. FOR OUR ŽABLJAK – MIRČETA TOMČIĆ 46. WITH WHOLE HEARTH FOR ŽABLJAK – CITIZENS GROUP (GG) Elections for Councilors to Municipal Council of Cetinje 47. SOCIALIST PEOPLE’S PARTY (SNP) 48. LIBERAL PARTY AND CIVIC PARTY (LP AND GP) – FOR CIVIL CETINJE 49. SOCIALIST DEMOCRATIC PARTY (SDP) – RIGHT ALTERNATIVE