Financing to Political Parties in 2011 by CDT Crna Gora

Financing to Political Parties in 2011

The present Publication is a part of the “Money and Politics Montenegro and region” Project, funded by:

Podgorica, November 2012

Financing to Political Parties in 2011

IMPRESSUM PUBLICATION Financing to Political Parties in 2011 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 Milana Čabarkapa RESEARCHERS Tatjana Koprivica, Bojan Božović and Milivoje Krivokapić TRANSLATOR Ana Knežević PREPRESS AND GRAPHIC DESIGN Blažo Crvenica PRINTING AP Print, Podgorica CIRCULATION 300

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 ............................................................................................................9 4. Andrijevica Municipality ................................................................................10 5. Bar Municipality ................................................................................................11 6. Berane Municipality ..........................................................................................13 7. Bijelo Polje Municipality..................................................................................14 8. Budva Municipality............................................................................................16 9. Cetinje, Historical Capital................................................................................18 10. Danilovgrad Municipality ............................................................................20 11. Herceg Novi Municipality ............................................................................21 12. Kolašin Municipality ......................................................................................22 13. Kotor Municipality ..........................................................................................23 14. Mojkovac Municipality ..................................................................................25 15. Nikšić Municipality ........................................................................................26 16. Plav Municipality ............................................................................................27 17. Plužine Municipality ......................................................................................29 18. Pljevlja Municipality ......................................................................................30 19. Podgorica, Administrative Capital ............................................................31 20. Rožaje Municipality ........................................................................................33 21. Šavnik Municipality ........................................................................................34 22. Tivat Municipality............................................................................................35 23. Ulcinj Municipality ..........................................................................................36 24. Žabljak Municipality ......................................................................................38 25. Analysis of Legislative Framework ..........................................................39 26. Annexes................................................................................................................41

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Financing to Political Parties in 2011

Introduction

Dear readers, This is the publication titled Financing to Political Parties in 2011, which is the outcome of the re search done within the "Money and Politics: Montenegro and the Region" Project implemented by the CDT with the support of The Balkan Trust for Democracy (BTD). The aim of the present publica tion and research concerned is to give as comprehensive as possible review of both private and Budget funding for political parties, in coherent manner that all interested person can easily understand. The information sources we used for the research are the laws and ordinances published in the Of ficial Gazette of Montenegro, as well as official data that the Parliament of Montenegro and local selfgovernment authorities provided us with pursuant to the Law on the Free Access to Information, statements by political parties published on the Web Site of the State Electoral Commission (SEC) and the 2011 Report on the Audit of Annual Financial Statements of Political Parties published by the State Audit Institution (SAI). In addition to the Introduction, the present publication includes 25 chapters total. The second Chap ter gives an overview of the private funding of political parties. The said Chapter reflects the infor mation concerning both the reporting obligations fulfillment by and private funding of political parties. The subsequent 22 chapters give a review of the funding of political parties from the Budget sources, at both national level and the level of individual municipalities. Besides the statistics on payments made to political parties, the present publication compares the obtained data with 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. In the late July 2011, Montenegro got the new Law on Financing of Political Parties the text of which was drafted by the mixed Working Group that comprised also the CDT representative and that did their best to respond to challenges faced in this area and to apply the recommendations by Mon tenegrin NGOs and GRECO evaluation. Unfortunately, conferring the full enforcement of the Law on the independent and capacitated State Electoral Commission failed; therefore, in December 2011, the Amendments and Supplements to the said Law conferred the audit on the State Audit institution as on the only institution in Montenegro that has the capacity to perform a professional audit. How ever, the Amendments to the Law removed the part of provisions governing the supervision of the Law enforcement, making thereby possible for competent institutions to renounce their competence and to transfer and avoid responsibilities in relation to the Law enforcement. The Law had been entered into force on January 1st 2012 and, as observed already in the first month of its enforcement, numerous political parties and Montenegrin Municipalities violated the Law on Financing of Political Parties and the enforcement of the Law by competent public administration authorities was at inadequate level.

Introduction In 2011, a large number of Municipalities continued their practice to make no disbursement for reg足 ular activities of political parties at local level. Besides, political parties persisted in their practice of not publishing their respective reports in line with the law. Competent public administration au足 thorities followed their practice of not acting and of passive approaching to challenges in political parties funding, so there has been neither misdemeanor procedure instigated in relation to the major portion of recorded Law infringement nor sentences pronounced for any act contravening the Law.

Financing to Political Parties in 2011

Financing to Parties from the Private Funds SECONDARY LEGISLATION AND REPORTING FORMS

On January 30th, 2012, the State Electoral Commission (SEC) approved the Rules on the Method of Accounting of and Reporting on NonMonetary Contributions to Political Parties. The adopted Rules have left a large space for misuses. The Law prescribes that nonmonetary con tributions shall be accounted according to the market value and that they shall be reported as rev enues. The SEC has made a significant derogation from the legal norm by the said piece of secondary legislation. According to the new solution, nonmonetary contributions shall be accounted as a dif ference between the prices paid for product / service and the market value thereof only if that dif ference exceeds 30.00%. Such solution has actually ensured political parties to have up to 30.00% discounts and to avoid reporting them as nonmonetary contributions, making thereby the situation not considered as favoring political parties to other consumers which is unacceptable. On March 22nd, the Ministry of Finance adopted the Rule Book on the Form of Annual Statement on Revenues, Assets and Expenditures of a Political Party. The Rule Book was entered into force on March 28th and has brought certain improvements as compared with previous forms. However, the Ministry of Finance had been unreasonably late with enacting the foregoing document, and brought thereby political parties to the situation that they had just several days to prepare their respective Statements on Revenues, Assets and Expenditures and Annual Statements of Accounts, since the deadline had been set as March 31st.

ANNUAL STATEMENT OF ACCOUNTS Political parties registered in Montenegro were under an obligation to submit to the Montenegro State Audit Institution (SAI), by March 31st 2012, their respective 2011 Annual Statements of Ac counts in order to ensure both their subjecting to an audit and developing the Report on the audit of such Annual Statements of Accounts. At the same time, parties were under an obligation to table the foregoing Statements also to State Electoral Commission (SEC), which posts them on their Web Site in order to make them available to the public. Until publishing the present research, only 24 parties out of 37 ones total, which were considered as registered in Montenegro in 2011, have their Annual Statements of Accounts published on the Web Site of the State Electoral Commission. A large number of the foregoing Statements were pub lished significantly after the legally prescribed deadline. Out of the foregoing 24 published Annual Statements of Accounts, only 101 were developed on the prescribed Annual Statement of Accounts

PzG (Party for Gusinje), DPS (Democratic Party of Socialists), SDP (Social democratic Party of Montenegro), Forca, NOVA (New Serb Democracy), NS (People’s Party), BDPCG (Bosniak Democratic Party of Montenegro), Perspektiva (Perspective), DSS (Democratic Serb Party) and OSS (Serbian Homeland Party).

Financing to Parties from the Private Funds Form, whereas 142 parties submitted their respective Statements on the invalid Form, i.e. on the Form used by NGOs and business companies. The 2011 Report on the Audit of Annual Financial Statements of Political Parties, which was devel oped by the SAI, states that DPS, SDP, HGI, PzP and DSuCG submitted their respective Annual Fi nancial Statements to the SAI „on the prescribed Form and within the set deadline“, while affirming that BS, SNP, NOVA, DUA, Forca and AA submitted their respective Statements “on the prescribed Form”, but not referring to any deadline. As for the members of Albanian Coalition Perspective, the Report states that they did not submit their Statements to the SAI. For those parties that failed to submit their respective Statements on Revenues, Assets and Expen ditures or Annual Statements of Accounts by March 31st, the Law lays down they shall be subject to a fine ranging from €10,000 to €20,000. Despite the SEC and SAI’s representatives announced sev eral times that the majority of political parties were late with submitting their respective Annual Statements of Accounts, it is not know whether the said institutions have instigated any misde meanor procedure against any of such political parties. In November 2012, the SAI published the Report on the Audit of 2011 Annual Financial Statements of Political Parties. Nevertheless, the SAI encompassed by their audit not all the registered political parties as said under the Law, but they subjected to their audit only 11 parliamentary political parties and one civic list that had its MPs in the Parliament of Montenegro in 2011.

2011 STATEMENTS ON REVENUES, ASSETS AND EXPENDITURES According to the Law on Financing of Political Parties, political parties registered in Montenegro were under an obligation to submit their respective lastyear Statements on Revenues, Assets and Expenditures to the SEC by March 31st of the current year. By the time of publishing the present research, the SEC’s Web Site made public the Statements on Revenues, Assets and Expenditures of only 26 parties3, whereas one portion thereof significantly after the prescribed deadline. Out of those 26, even nine4 Statements were submitted on the invalid Forms. For severalmonth period so far, the SEC’s Web Site has replaced the Statement of one List of Candidates5 only, by posting the one that the said List developed on the new Form. In March, the Ministry of Finance adopted the Rule Book on the Form of Annual Statement on Rev enues, Assets and Expenditures of a Political Party. Political parties were under an obligation to pres 2

DUA (Democratic Union of Albanians), PzP (Movement for Chnages), BS (Bosniak Party), SPISP (Party of Pensioners, Disabled People and Social Justice), DSJ (Democratic party of Unity), BDSS (Bosniak Democratic Party of Sandzak), AA (Albanian Alterna tive), HGI (Croatian Civic Initiative), LP (Liberal party), DSuCG (Democratic League in Montenegro), SNP (Serb People’s Party), PDP (Party of Democratic Prosperity), SPJ (Socialist Party of Yugoslavia), SL (SSN) {Serbian People’s List: Party of Serb Populists). DPS (Democratic Party of Socialists), SDP (Social democratic Party of Montenegro), DSuCG (Democratic League in Montene gro) , NOVA (New Serb Democracy), NS (People’s Party), LP (Liberal party) Forca, BDPCG (Bosniak Democratic Party of Montenegro), Perspektiva (Perspective), DSS (Democratic Serb Party), SPISP (Party of Pensioners, Disabled People and Social Justice), OSS (Serbian Homeland Party), SL (SSN) {Serbian People’s List: Party of Serb Populists). SPJ (Socialist Party of Yugoslavia), AA (Albanian Alternative), PDP (Party of Democratic prosperity), PzG (Party for Gusinje), DCB (Democratic Center of Boka), SNP (Serb People’s Party), PzP (Movement for Chnages), DUA (Democratic Union of Albanians), HGI (Croa tian Civic Initiative), SRS, BDSS, DSJ, BS. SNP, PzP (Movement for Chnages), DUA (Democratic Union of Albanians), HGI (Croatian Civic Initiative), BS (Bosniak Party), SRS (Serbian Radical Party), BDSS (Bosniak Democratic Party of Sandzak), DSJ (Democratic Party of Unity), DCB (Democratic Center of Boka) Albanian Coalition Perspective.

Financing to Political Parties in 2011 ent their respective annual statements on the Form prescribed by the said Rule Book. Nine parties submitted their respective Statements on Revenues, Assets and Expenditures on the earlier valid Form that had been annulled by entering the foregoing Rule Book into force. The Form on which the parties submitted their Statements is invalid and, in technical sense, it may not serve a valid report development. The parties that used the invalid Form did not state the struc ture of their revenues at all, which is unacceptable from the point of view of transparency. The new statement includes information about both the structure of revenues and the value of real estates, and they require more precise data on revenues from both membership fees and contributions made by legal and natural persons – which was not the case when it comes to the invalid Form. By failing to submit their statements on the valid Form, the transparency of the listed political parties funding has been affected considerably. Besides, even the parties that submitted their statements on the appropriate Form did not fulfill the requirements stated thereunder, since certain pieces of information were not stated. It is unknown whether any party that did not submit the said statement or that submitted it after the prescribed deadline or that submitted incorrect and incomplete statement has faced a misde meanor procedure.

PRIVATE FUNDING OF POLITICAL PARTIES According to the audit findings6, the parties stated under their respective Business Books also the private funding amounting to €209,551.00.

Table 1: Parties’ revenues from private funding, data obtained from the 2011 Report of the Audit of Annual Financial Statements of Political Parties. PARTY DPS (Democratic Party of Socialists) SDP (Social Democratic Party of Montenegro) SNP (Serb People’s Party) AA (Albanian Alternative) PzP (Movement for Changes) HGI (Croatian Civic Initiative) FORCA BS (Bosniak Party) NOVA (New Serb Democracy) DSuCG (Democratic League in Montenegro) DUA (Democratic Union of Albanians) PERSPEKTIVA (Perspective) TOTAL

REVENUES FROM PRIVATE FUNDING (IN €) 200,102.00 4,986.00 3,107.00 500.00 400,00 273.00 183.00 0.00 0.00 0.00 0.00 0.00 209,551.00

The foregoing data confirm the previousyears practice of political parties, with the exception of DPS, to gain the majority of their revenues from public sources. Besides, by analyzing the available 2011 Annual Statements on Revenues, Assets and Expenditures, it has been concluded that parties gain negligible revenues from private contributions, which situ ation has almost never been recorded in comparative practice.

http://www.dri.co.me/1/doc/Izvjestaj%20o%20reviziji%20godisnjih%20finansijskih%20izvjestaja%20politickih%20partija %20za%202011godinu.pdf

Montenegro

The information sources we used are the documents that CDT was provided with by the Secretary General of the Parliament of Montenegro, based on the Decision No. 0041/1224/2 dated May 14, 2012, as well as the official documents published in the Official Gazette of Montenegro.

REGULAR FUNDING The 2011 Budget Law of Montenegro projected the Budget funds amount to be €1,335,744,127.39 total, out of which €631,608,828.10 the Operating Budget. The funds for the activities of the parlia mentary parties were projected as €3,158,044.147, i.e. 0.50% of the Operating Budget. Amendments and supplements to the Budget Law8 did not induce a change either in the amounts projected for the Operating Budget or in the funds intended for parliamentary parties.

Table 2: The funds disbursed for regular parliamentary parties funding in 20119 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 NGO Perspective – Ana E Malit Croatian Civic Initiative New Democratic Force, FORCA TOTAL

AMOUNT (IN €) 1,202,963.16 573,303.72 341,323.92 308,184.00 208,764.12 142,484.16 76,204.20 76,204.20 76,204.20 76,204.20 76,204.20 3,158,044.08

According to the data obtained from the Parliament’s Secretary General Office, while upon comparing them with the plan stated under the 2011 Budget, we can conclude that parliamentary parties were disbursed the funds that had been projected for their purposes. Nevertheless, the confirmation thereof can be obtained only after publishing the Annual Statement of Accounts of the 2011 Budget of Montenegro.

7 8 9

The 2011 Budget Law of Montenegro, Official Gazette of Montenegro, No. 10/09 as of December 29, 2010 Law amending the 2011 Montenegro Budget Law, Official Gazette of Montenegro, No. 28/11 as of 10 June 2011 Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011

Andrijevica Municipality

The information sources we used are the documents that CDT was provided with by the Cabinet of Andrijevica Municipality Mayor based on the Decision No. 03191/201201 dated April 27, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordi nances. The relevant Andrijevica municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on the political par ties funding in 2011.

REGULAR FUNDING The projected 2011 Andrijevica Municipal Budget was €2,130,170.40, whereas the projected amount for the purposes of Operating Budget was €969,469,27. The projected amount to be transferred to political parties, factions and associations was €9,055.0010 total, i.e. 0.93% of the 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Andrijevica stated that the transfers to political parties, factions and associations amounted to €8,300.27.11

Table 3: Funds disbursed for regular political parties funding in 201112 PARTY Democratic Party of Socialists Socialist People’s Party Serb People’s Party Movement for Changes Serbian Radical Party – dr. Vojislav Šešelj Veselin Radenović, Councilor TOTAL

AMOUNT (IN €) 3,625.46 2,258.80 712.67 435.97 435.38 435.38 8,310.06

Based on both the documents published in the Official Gazette and the Analytical Records, it can be concluded that, fore regular financing, political parties were disbursed €8,310.06, which is €744.94 less than projected for the purpose under the Municipal Budget of Andrijevica. At the same time, discrepancy between the data stated under the Ordinance for the Annual State ment of Accounts of the 2011 Municipal Budget of Andrijevica and the data that the CDT was pro vided with by the relevant Andrijevica municipal authority has been found.

Appropriation Ordinance for the 2011 Municipal Budget of Andrijevica, Official Gazette of Montenegro: Municipal Ordinances, No. 02/11 dated January 14, 2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Andrijevica, Official Gazette of Montenegro: Municipal Ordinances, No. 24/12 dated July 30, 2012. Official data obtained based on 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 Secretariat for Economy and Finance of Bar Municipality, based on the Decision No. 03205u14226 dated April 17, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Bar municipal authority allowed and enabled CDT to have access to the required in formation within the legally prescribed deadline, by sending the accurate data on the political parties funding in 2011.

REGULAR FUNDING The projected 2011 Bar Municipal Budget was €26,060,000.0, whereas the projected amount for the purposes of Operating Budget was €10,560,000.00. The projected amount to be transferred to political parties was €105,000.0013, i.e. 1.00% of the 2011 Operating Budget. Upon the Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Bar, the Budget was reduced to €16,400,000.00 and the Operating Budget was reduced to €9,160,000.00; however, the projected amount to be transferred to political parties re mained the same, i.e. it equaled to €105,000.0014 or 1.14% of the revised 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Kotor stated that the transfers to political parties, factions and associations amounted to €103,874.00.15

Table 4: Funds disbursed for regular political parties funding in 201116 PARTY Democratic Party of Socialists Social Democratic Party Socialist People's Party Serb People's Party Movement for Changes Bosniak Party Democratic League People's Party Liberal Party Democratic Center Association of Pensioners Party TOTAL 13

AMOUNT (IN €) 38,202.00 13,676.00 11,230.00 8,773.00 6,321.50 6,321.50 3,870,00 3,870,00 3,870,00 3,870,00 3,870,00 103,874.00

Appropriation Ordinance for the 2011 Municipal Budget of Bar, Official Gazette of Montenegro: Municipal Ordinances, No. 43/10, dated December 31, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Bar, Official Gazette of Montenegro: Municipal Ordinances, No.40/11, dated December 28, 2011. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Bar, Official Gazette of Montenegro: Municipal Ordinances, No. 27/12, dated August 20, 2012. Official data obtained based on the Law on the Free Access to Information

Financing to Political Parties in 2011 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 parties, for their regular financing, were disbursed â&#x201A;Ź103,874.00. The foregoing amount matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget of Bar. Nevertheless, the foregoing amount is lower than the original one projected to be transferred to poÂ litical parties in Bar Municipality.

Berane Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economic Development of Berane Municipality, based on the Decision No. 06401 201 dated April 17, 2012, as well as the official documents published in the Official Gazette of Mon tenegro: Municipal Ordinances. The relevant Berane municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on the political par ties funding in 2011.

REGULAR FUNDING The projected 2011 Berane Municipal Budget was €8,497,100.00, whereas the projected amount for the purposes of Operating Budget was €5,696,500.00. The projected amount to be transferred to po litical parties and associations was set as €30,000.0017, i.e. 0.50% of the 2011 Operating Budget. Upon Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Berane, Berane Municipal Budget was set as €9,625,145.00, with the Operating Budget amounting to €7,322,045.00, whereas the projected amount to be transferred to political parties remained the same, i.e. €30,000.0018 or 0.41% of the 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Berane, the projected amount to be transferred to political parties, factions and associations was set as €30,287.00.19

Table 5: Funds disbursed for regular political parties funding in 201120 PARTY Democratic Party of Socialists Socialist People’s Party New Serb Democracy People’s Party Movement for Changes Municipal Committee of Democratic Serb Party TOTAL

AMOUNT (IN €) 10,000.00 5,500.00 5,000.00 5,000.00 1,000.00 800.00 27,300.00

Upon comparing the amount stated under the documents we were provided by the relevant Berane mu nicipal authority and the one projected under the Budget, we have concluded that political parties in this Municipality were disbursed € 2,700.00 less than projected. However, according to the Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Berane, it can be concluded that political parties were disbursed more funds than projected, i.e. they were disbursed €287.00 more than projected. 17

Appropriation Ordinance for the 2011 Municipal Budget of Berane, Official Gazette of Montenegro: Municipal Ordinances, No. 01/11 dated January 12, .2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Berane, Official Gazette of Montenegro: Municipal Ordinances, No. 40/11 dated December 28, 2011 Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Berane, Official Gazette of Montenegro:17 Municipal Ordinances, No. 19/12 dated June 22, 2012. Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011

Bijelo Polje Municipality

The information sources we used are the documents that CDT was provided with by both the Mu nicipal Mayor Office and the Secretariat for Finance of Bijelo Polje Municipality based on the Letters Nos. 979/12 and 05/1585 both dated April 19, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Bijelo Polje municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on the political par ties funding in 2011.

REGULAR FUNDING The projected 2011 Bijelo Polje Municipal Budget was €11,600,000.00, whereas the projected amount for the purposes of Operating Budget was €6,436,200.00. The projected amount to be trans ferred to political parties was €70,000.0021, i.e. 1.08% of the 2011 Operating Budget. Upon Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Bijelo Polje , the projected Budget was reduced to €9,040,499.73 and the Operating Budget was reduced to €6,057,270.00. The projected amount to be transferred to political parties was the same, i.e. €70,000.0022 or 1.15% of the revised 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Bijelo Polje stated that the transfers to political parties, factions and associations amounted to €69,107.78.23

Table 6: Funds disbursed for regular political parties funding in 201124 PARTY Democratic Party of Socialists Socialist People’s Party New Serb Democracy Bosniak Democratic Party MoslemBosniak Alliance Social Democratic Party Movement for Chnages Bosniak Party Liberal Party Democratic Serb Party People’s Party TOTAL 21

AMOUNT (IN €) 22,000.00 12,248.84 7,239.60 6,571.32 6,571.32 6,000.00 3,446.63 3,105.00 2,850.00 2,300.22 2,300.00 74,577.93

Appropriation Ordinance for the 2011 Municipal Budget of Bijelo Polje, Official Gazette of Montenegro: Municipal Ordinances, No. 04/11 dated January 24, 2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget Bijelo Polje, Official Gazette of Montenegro: Municipal Ordinances, No. 02/12. dated January 17, 2012. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Bijelo Polje, Official Gazette of Montenegro: Mu nicipal Ordinances, No. 23/12 dated July 25, 2012. Official data obtained based on the Law on the Free Access to Information

Bijelo Polje Municipality According to the data found under the Annual Statement of Accounts of the 2011 Municipal Budget of Bijelo Polje, political parties were disbursed less funds that originally projected. However, the dis crepancy between those data and the ones that the CDT was provided with According to the pro vided data, political parties in Bijelo Polje were disbursed even €4,577.93 more than projected, i.e. they were paid €5,470.15 more than stated under the Annual Statement of Account.

Financing to Political Parties in 2011

Budva Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance of Budva Municipality, based on Decision No. 04U100/1 dated May 09, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. Within the legally prescribed deadline, Budva Municipality responded to the Request for Free Access to information.

REGULAR FUNDING The projected 2011 Budva Municipal Budget was €57,744,000.00, whereas the projected amount for the purposes of Operating Budget was €39,497,000.00. The projected amount to be transferred to political parties was €110,000.0025, i.e. 0.27% of the 2011 Operating Budget, which was far away from the legally prescribed minimum. Upon Amendments and Supplements, the 2011 Budva Municipal Budget was reduced to €34,270,000.0026 and the Operating Budget was reduced to €28,575,000.00. The projected amount to be transferred to political parties was set as €25,000.00, i.e. 0.09% of the 2011 Operating Budget, which represents an additional deviation from the legally prescribed minimum. The Decision of Budva Municipality, sent in response to the Request for Free Access to information, stated that, due to the Budget illiquidity, only one political party, namely New Serb Democracy had been paid the amount equaling to €5,983.91.

Appropriation Ordinance for the 2011 Municipal Budget of Budva, Official Gazette of Montenegro: Municipal Ordinances, No. 1/11 dated January 12, 2011 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Budva, Official Gazette of Montenegro: Municipal Ordinances, No. 35/11 dated November 24, 2011

Budva Municipality

The scanned Decision made by the Secretariat for Economy and Finance of Budva Municipality as of May 9, 2012

Financing to Political Parties in 2011

Cetinje, Historical Capital

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Entrepreneurship Development of Cetinje Historical Capital, based on the Decisions No. 04061/123048 dated April 11, 2012, 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 and submitted the required documentation within the legally prescribed deadline.

REGULAR FUNDING The projected 2010 of Cetinje Historical Capital Budget amounted to €6,500,000.00, whereas the projected amount for the purposes of Operating Budget was €6,162,500.00. The projected amount to be transferred to political parties was €44,000.0027 total, i.e. 0.71% of the 2011 Operating Budget. The documents that the CDT was provided with by the relevant Cetinje Historical Capital service have induced the conclusion that transfers to political parties for their regular activities took place. However, the Ordinance for the Annual Statement of Accounts of the 2011 Budget of Cetinje Histor ical Capital28 stated that there was no transfer to political parties, i.e. that the realization of the Budget Item No. 431221: Transfers to Political Parties equaled to 0,00€, i.e. 0%.

Appropriation Ordinance for the 2011 Budget of Cetinje Historical Capital, Official Gazette of Montenegro: Municipal Ordi nances, No. 11/11 dated March 30, 2011. Ordinance for the Annual Statement of Accounts of the 2011 Budget of Cetinje Historical Capital, Official Gazette of Mon tenegro: Municipal Ordinances, No. 21/12 dated July 10, 2012.

Cetinje, Historical Capital

The scanned Decision made by the Secretariat for Economy, Development and Finance, of Cetinje, Historical Capital as of April 11, 2012

Financing to Political Parties in 2011

10.

Danilovgrad Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Econ omy and Finance of Danilovgrad Municipality, based on the Decision No. 0303231090/3 dated April 17, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Danilovgrad municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on the political parties funding in 2011.

REGULAR FUNDING The projected 2011 Danilovgrad Municipal Budget was €4,900,000.00€, whereas the projected amount for the purposes of Operating Budget was €2,932,600.00. The projected amount to be transferred to po litical parties was €30,900.0029, i.e. 1.05% of the 2011 Operating Budget. Upon Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Danilovgrad, the projected Budget was reduced to €2,900,000.00 and the Operating Budget was reduced to €1,128,430.0030. The funds intended for regular political parties financing were allocated as €36,510.00, i.e. 3.23% of the 2011 Operating Budget. The Annual Statement of Accounts of the 2011 Municipal Budget of Danilovgrad stated that the transfers to political parties amounted to €36,503.62.31

Table 7: Funds disbursed for regular political parties funding in 201132 PARTY Democratic Party of Socialists Socialist People’s Party Socialist Democratic Party New Serb Democracy Movement for Changes Democratic Serb Party Party of Pensioners, Disabled People and Social Justice of Danilovgrad Independent Councilor: Zoran Pavićević TOTAL

AMOUNT (IN €) 14,919.58 7,246.90 3,803.82 3,803.82 2,867.00 1,666.17 1,931.29 265.04 36,503.62

After comparing the amounts stated under the documents that we were provided with by the relevant Danilov grad municipal authority to the ones stated under the 2011 Municipal Budget we have concluded that political parties in this Municipality were disbursed the amount that was almost equal to the one projected under the Budget. In addition, the amount stated under the provided documents matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget of Danilovgrad. 29

Appropriation Ordinance for the 2011 Municipal Budget of Danilovgrad, Official Gazette of Montenegro: Municipal Ordi nances, No. 11/11 dated March 30, 2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Danilovgrad, Official Gazette of Montenegro: Municipal Ordinances, No. 37/11 dated December 09, 2011. Annual Statement of Accounts of the 2011 Municipal Budget of Danilovgrad, Official Gazette of Montenegro: Municipal Or dinances, No. 28/12 dated September 07, 2012. Official data obtained based on the Law on the Free Access to Information.

Herceg Novi Municipality

11.

Herceg Novi Municipality

The information sources we used are the documents that CDT was provided with by the Cabinet of Hercgeg Novi Municipality Mayor, based on the Letter No. 022196 dated March 22, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Herceg Novi municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on the political parties funding in 2011.

REGULAR FUNDING The projected 2011 Herceg Novi Municipal Budget was €15,990,000.00, whereas the projected amount for the purposes of Operating Budget was €11,260,000.00. The projected amount allocated to political parties was €115,000.00, out of which €90,000.0033 stated under Item: Expenses of parties holding seats in the Mu nicipal Council and €25,000.00 stated under Item: Expenses for Renting Offices for parties holding seats in the Municipal Council. The total funds allocated to political parties were set as 1.02% of the Operating Budget. Upon approving the Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Herceg Novi, the Budget was reduced to €10,746,000.00€ and the Operating Budget was reduced to €5,672,560.00. The amount intended for political parties was also reduced, to €89,000.0034. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Herceg Novi stated that the transfers to political parties, factions and associations €57,396.42.35

Table 8: Funds disbursed for regular political parties funding in 201136 PARTY Socialist People’s Party Democratic Party of Socialists New Serb Democracy Movement for Changes Social Democratic Party Democratic Center of Boka Party of Serb radicals People’s Party TOTAL

AMOUNT (IN €) 6,000.00 2,000.00 2,000.00 1,500.00 1,000.00 1,000.00 450.00 300.00 14,250.00

Upon comparing the funds projected under the Budget and the amounts stated under the Annual State ment of Accounts of the 2011 Municipal Budget of Herceg Novi as disbursed, it can be concluded that po litical parties were paid significantly less funds than projected. On the other hand, the data, which the relevant Herceg Novi municipal authorities provided the CDT with, have shown considerable deviation from what was disclosed under the Annual Statement of Accounts. 33

Appropriation Ordinance for the 2011 Municipal Budget of Herceg Novi, Official Gazette of Montenegro: Municipal Ordi nances, No. 08/11 dated March 04, 2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Herceg Novi, Official Gazette of Montenegro: Municipal Ordinances, No. 37/11 dated December 09, 2011. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Herceg Novi, Official Gazette of Montenegro: Municipal Ordinances, No. 25/12 dated August 01, .2011. Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011

12.

Kolašin Municipality

The information sources we used are the data that the CDT was provided with trhough email com munication by the relevant Kolašin municipal authorities, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances.

REGULAR FUNDING The projected 2011 Kolašin Municipal Budget was €7,408,000.00, whereas the projected amount for the purposes of Operating Budget was €6,418,000.00. The projected amount to be transferred to political parties was €64,479.0037 total, i.e. 1.00% of the 2011 Operating Budget. Upon Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Kolašin38, the total Budget amount was reduced to €4,761,782.49 and the Operating Budget amount was reducd to €4,215,971.00. The political parties funding was reduced to €42,459.00, i.e. they equaled to 1.00% of the 2011 Operating Budget.

Table 9: Funds disbursed for regular political parties funding in 201139 FUNDS ALLOCATED TO POLITICAL PARTIES AND COUNCILORS Coallition of SNP (Serb People’s Party), NOVA (New Serb Democracy), PzP (Movement for Changes), JKPCG (Yugoslav Comunist Party of Montenegro) and SPISP (Party of Pensioners, Disabled People and Social Justice) Citizen Group TOGETHER FOR KOLAŠIN SDP (Social Democratic Party of Montenegro) DPS (Democratic Party of Socialists) TOTAL

TRANSFERS PROJECTED UNDER THE BUDGET (IN €)

14,398.42

8,557.42 3,920.47 15,562,.69 42,459.00

DISBURSED (IN €) SNP

19,513.56

PZP

15,136.57

SNS

6,119.76 3,000.00 1,108.00 300.00 45,177.89

Based on both the Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Kolašin and the data that we were provided with by the relevant municipal service, it can be concluded that political parties were disbursed €45,177.89 as their reg ular funding, i.e. €2,718.89 more than projected for the purpose.

Appropriation Ordinance for the 2011 Municipal Budget of Kolašin, Official Gazette of Montenegro: Municipal Ordinances, No. 13/11 dated April 18, 2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Kolašin, Official Gazette of Montenegro: Municipal Ordinances, No. 39/11 dated December 23, 2011. Official data obtained based on the Law on the Free Access to Information.

Kotor Municipality

13.

Kotor Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Local Revenues, Budget and Finance of Kotor Municipality, based on the Response to the Request for the Access to information No. 04014248/1 dated April 11, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Kotor municipal authority allowed and enabled CDT to have access to the required in formation within the legally prescribed deadline, by sending the accurate data on the political parties funding in 2011.

REGULAR FUNDING The projected 2011 Kotor Municipal Budget was €15,745,000.00, whereas the projected amount for the purposes of Operating Budget was €8,824,000.00. The projected amount to be transferred to political parties, factions and associations, as stated under Item No. 43122, was €89,100.0040, i.e. 1.01% of the 2011 Operating Budget. Upon Amendments and Supplements41, the 2011 Kotor Municipal Budget was reduced to €6,766,538.00 and the Operating Budget was reduced to €5,301,596.00. The projected revised amount to be transferred to political parties, factions and associations, as stated under Item No. 43122, was set as €106,500.00, i.e. 2.01% of the Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Kotor stated that the transfers to political parties, factions and associations amounted to €91,596.52.42

Table 10: Funds disbursed for regular political parties funding in 201143 PARTY Democratic Party of Socialists Socialist People’s Party Democratic Serb Party Liberal Party Movement for Changes Social Democratic Party People’s Party Croatian Civic Initiative Serb People’s Party Božović, Ljubo Uskoković, Veljko TOTAL 40

AMOUNT (IN €) 34,696.82 17,055.,82 9,374.42 8,361.55 6,804.86 5,125.14 3,304.86 2,304.86 2,304.86 1,410.14 853.45 91,596.52

Appropriation Ordinance for the 2011 Municipal Budget of Kotor, Official Gazette of Montenegro: Municipal Ordinances, No. 04/11 dated January 24, 2011. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Kotor, Official Gazette of Montenegro: Municipal Ordinances, No. 38/11 dated December 16, 2011. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Kotor, Official Gazette of Montenegro: Municipal Ordinances, No. 17/12 dated June 05, 2012. Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011 Based on both the documents published in the Official Gazette of Montenegro and the Analytical Records, it can be concluded that the relevant Kotor municipal authorities disbursed to political parÂ ties, for their regular activities, â&#x201A;Ź91,596.52. Tha foregoing amount matches the one stated under the Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Kotor, with the realization equaling to 86.01% of the projected amount.

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.08346 dated April 11, 2012, as well as the official documents published in the Official Gazette of Montene gro: Municipal Ordinances. The relevant Mojkovac municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on the political par ties funding in 2011.

REGULAR FUNDING The projected 2011 Mojkovac Municipal Budget amounted to €2,730,235.59, whereas the projected amount for the purposes of Operating Budget was €2,061,452.58. The projected amount to be trans ferred to political parties was €17,000.0044 total, i.e. 0.82% of the 2011 Operating Budget. The Budget Item No. 43124 allocated also the funds equaling to €4,800.00 for renting offices needed by councilor clubs. According to the Ordinance for Approving the Annual Statement of Accounts for the 2011 Municipal Budget of Mojkovac, the transfers to political parties, factions and associations amounted to €10,800.0045, whereas the funds projected for renting offices needed by councilor clubs were not disbursed.

Table 11: Funds disbursed for regular political parties funding in 201146 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party TOTAL

AMOUNT (IN €) 7,500.00 2,000.00 1,300.00 10,800.00

After considering the documents published in the Official Gazette and the Analytical Records provided by relevant Mojkovac municipal authorities, it can be concluded that the amount disbursed for regular political parties funding equaled to €10,800.00€, i.e. €6,200.00 less than projected under the Budget. However, the disbursed amount matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget of Mojkovac, with the realization equaling to 63.53% of the projected amount.

Appropriation Ordinance for the 2010 Municipal Budget of Mojkovac, Official Gazette of Montenegro: Municipal Ordinances No. 12/11 dated April 08, 2011. Ordinance for Approving the the Annual Statement of Accounts for the 2010 Municipal Budget of Mojkovac, Official Gazette of Montenegro Municipal Ordinances No. 23/12 dated July 25, 2012. Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011

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. 0640296/1 dated April 17, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Nikšić municipal authority allowed and enabled CDT to have access to the required in formation within the legally prescribed deadline, by sending the accurate data on the political parties financing in 2011.

REGULAR FUNDING The projected 2011 Nikšić Municipal Budget amounted to €30,798,567.08, whereas the amount projected for the purposes of the Operating Budget was €23,160,802.08. The amount projected to be transferred to political parties, factions and associations was €276,810.0047, i.e. 1.19% of the 2011 Operating Budget. Upon Amendments and Supplements, the 2011 Nikšić Municipal Budget was reduced to €27,063,950.62 and the Operating Budget was reduced to €23,039,245.62. The amount projected to be transferred to po litical parties, factions and associations was €208,100.0048 total, i.e. 0,90% of the 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Nikšić stated that the transfers to political parties, factions and associations amounted to €63,093.66.49

Table 12: Funds disbursed for regular political parties funding in 201150 PARTY New Ser Democracy Democratic Party of Socialists Socialist People’s Party Social and Democratic Party Movement for Changes Democratic Serb Party People’s Party DCCGLP (Democratic Center of Montenegro – Liberal Party) TOTAL

AMOUNT (IN €) 6,338.41 4,048.24 2,305.04 934.80 545.62 351.04 351.03 0.00 14,874.18

Upon considering the obtained data, we have concluded that the relevant Nikšić municipal authority disbursed, for the regular activities of the political parties, €14,874.18. It is difficult to say whether the foregoing amount was indeed projected under the Budget, since there was no precise classifica tion thereof under both the Budget and the Annual Statement of Accounts into allocations to po litical parties and NGOs respectively. 47

Appropriation Ordinance for the 2011 Municipal Budget of Nikšić, Official Gazette of Montenegro: Municipal Ordinances No. br. 43/10 dated December 31, 2010. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Nikšić, Official Gazette of Montenegro: Municipal Ordinances No. 40/11 dated December 28, 2011. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Nikšić, Official Gazette of Montenegro: Municipal Ordinances No. 25/12 dated August 01, 2012. 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 through email communication by the Secretariat for Economy, Development and Finance of Plav Municipality, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances.

The relevant Plav municipal authority allowed and enabled CDT to have access to the required in formation within the legally prescribed deadline, by sending the accurate data on the political parties funding in 2011.

REGULAR FUNDING The projected 2011 Plav Municipal Budget amounted to €2,119,833.00. The amount projected to be transferred to political parties was €12,000.0051, i.e. 0.56% of the 2011 Operating Budget. The Ordinance for the Revision of the 2011 Municipal Budget of Plav, the Budget was reduced to €2,004,450.00, and the operating Budget was reduced to €1,401,950.00. At the same time, the funds projected to be transferred to political parties were reduced even to €1,000.00,52 i.e. to some 0.07% of the 2011 Operating Budget. The provided documents (Analytical Records) have served us to conclude that political parties fund ing was disbursed as the amount equaling to €1,000.00 and credited to the account of only one po litical party, namely to the account of Social Democratic Party.

Appropriation Ordinance for the 2011 Municipal Budget of Plav, Official Gazette of Montenegro: Municipal Ordinances, No. 12/11 dated April 08, 2011. Ordinance for the Revision of the 2011 Municipal Budget of Plav, Official Gazette of Montenegro: Municipal Ordinances, No. 03/12 dated January 24, 2012.

Financing to Political Parties in 2011

The scanned Decision made by the Secretariat for Economy, Development and Finance of Plav Municipality

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 Letter No. 04812 dated May 17, 2012; Decision No. 04649 dated April 05, 2011; Decision No. 041304 dated July 08, 2011; Decision No. 042491 dated December 14, 2011; Decision No. 04610/1 dated April 12, 2012; as well as the of ficial documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Plužine municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on political parties funding in 2011.

REGULAR FUNDING The projected 2011 Plužine Municipal Budget amounted to €3,455,457.00, whereas, for the purposes of the Operating Budget, the projected amount was €1,711,650.00. The projected amount to be trans ferred to political parties and factions was €20,000.0053, i.e. 1.17% of the 2011 Operating Budget. The Ordinance for Approving the Annual Statement of Accounts of the 2011 Municipal Budget of Plužine stated that the transfers to political parties amounted to €19,116.44.54

Table 13: Funds disbursed for regular political parties funding in 201155 PARTY Socialist People’s Party – dr Petar Žulović Coalition FOR EUROPEAN PLUŽINE (DPSSDP) TOGETHER FOR BETTER PIVA Yugoslav Communist Party of Montenegro (JKPCG) – Mirko Vuković TOTAL

AMOUNT (IN €) 8,886.36 3,551.64 3,551.64 1,126.80 17,116.44

The amount reached after addition of disbursed amounts as stated under the Analytical Records was €17,116.44, which matches neither the amount allocated to political parties under the Appro priation Ordinance for the 2011 Budget nor the amount stated under the Annual Statement of Ac counts of the Budget.

Appropriation Ordinance for the 2011 2011 Municipal Budget Plan of Plužine Official Gazette of Montenegro: Municipal Ordinances No. 01/11 dated January 12, 2011. Ordinance for Apoproving the Annual Statement of the 2011 Municipla Budget of Plužine Official Gazette of Montenegro: Municipal Ordinances No. 23/12 dated July 25, 2012. Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011

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 Letter No. 0640141 dated April 17, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Pljevlja municipal authority allowed and enabled CDT to have access to the required information within the legally prescribed deadline, by sending the accurate data on political parties funding in 2011.

REGULAR FUNDING The projected 2011 Pljevlja Municipal Budget was €21,130,000.00, whereas the projected amount for the Operating Budget was €11,362,706.00. The projected amount to be transferred to political parties, factions and associations was €247,242.0056, 2.17% of the 2011 Operating Budget. The Annual Statement of Accounts of the 2011 Municipal Budget of Pljevlja stated that the transfers to political parties, factions and associations amounted to €83,026.41.57

Table 14: Funds disbursed for regular political parties funding in 201158 PARTY Socialist People’s Party Democratic Party of Socialists New Serb Democracy People’s Party Social Democratic Party Serbian Radical Party Movement for Changes Democratic Serb Party TOTAL

AMOUNT (IN €) 31,333.84 25,218.96 16,598.65 4,228.53 2,908.21 1,120.32 1,000.00 617.90 83,026.41

Upon comparing the Analytical Records and the documents provided by relevant Pljevlja municipal authority, we have concluded that the amount disbursed for regular political parties funding equaled to €83,026.41 in 2011, which was €164,215.59 less than projected. However, the disbursed amount matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget of Pljevlja, with the realization equaling to 33.58%.

Appropriation Ordinance for the 2011 Municipal Budget of Pljevlja, Official Gazette of Montenegro: Municipal Ordinances,No. 14/11 dated April 28, 2011. The Annual Statement of Accounts of the 2011 Municipal Budget of Pljevlja Official Gazette of Montenegro: Municipal Ordi nances, No. 22/12 dated July 17, 2012. Official data obtained based on 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 Decision No. 05402/122395/1 dated April 17, 2012 and the Letter No: 05402/122395/2 dated April 26, 2012 as well as the official doc uments published in the Official Gazette of Montenegro: Municipal Ordinances.

REGULAR FUNDING The projected 2010 Podgorica Administrative Capital Budget was €68,316,950.00, whereas the pro jected amount for the Operating Budget was €35,718,590.00. The projected amount to be trans ferred to political parties, factions and associations was €350,000.0059, i.e. 0.98% of the 2011 Operating Budget. Upon Amendments and Supplements, the 2011 Podgorica Administrative Capital Budget was re duced to €a 53,502,800.00 and the Operating Budget was reduced to €30,029,000.00. The amount to be transferred to political parties, factions and associations was projected to be less than €300,000.0060, i.e. 1.00% of the revised Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Budget of Podgorica Administrative Capital stated that the transfers to political parties, factions and associations amounted to €281,695.38.61

Table 15: Funds disbursed for regular financing of the political parties holding seats on the Council of Administrative Capital, JanuaryDecember 201162 PARTY Democratic Party of Socialists Socialist People’s Party New Serb Democracy Social Democratic Party Movement for Changes Albanian Alternative People’s Party Democratic Serb Party Party of Pensioners, Disable People and Social Justice Liberal Party Democratic Center Bosniak Party TOTAL 59

AMOUNT (IN €) 63,879.88 25,569.28 13,597.22 13,597.21 13,597.21 6,413.98 4,019.58 4,019.58 4,019.58 4,019.58 4,019.58 4,019.58 160,772.26

Appropriation Ordinance for the 2011 Municipal Budget of Podgorica Administrative Capital, Official Gazette of Montenegro: Municipal Ordinances No.42/10 dated December 30, 2010. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Podgorica Administrative Capital, Official Gazette of Montenegro: Municipal Ordinances No. 36/11 dated December 05, .2011. The Annual Statement of Accounts of the 2011 Municipal Budget of Podgorica Administrative Capital, Official Gazette of Mon tenegro: Municipal Ordinances No. 18/12 dated June 12, 2012. Official data obtained based on the Law on the Free Access to Information.

Financing to Political Parties in 2011

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 16: Funds disbursed for regular financing of the political parties holding seats on the Town District Council of Golubovci, JanuaryDecember 201163 PARTY Democratic Party of Socialists Socialist People’s Party NOVA – People’s Socialist Party Social Democratic Party People’s Party Movement for Changes TOTAL

AMOUNT (IN €) 25,569.28 13,597.21 8,808.38 6,413.98 4,019.58 4,019.58 62,428.01

Table 17: Funds disbursed for regular financing of the political parties holding seats on the Town District Council of Tuzi, JanuaryDecember 201164 PARTY Democratic Party of Socialists Democratic Union of Albanians Civic Initiative Tuzi Bosniak Party Social Democratic Party Socialist People’s Party List for Tuzi Democratic Alliance in Montenegro TOTAL

AMOUNT (IN €) 13,597.21 11,202.80 11,202.80 6,413.98 4,019.58 4,019.58 4,019.58 4,019.58 58,495.11

After analysis of the available documents, we have concluded that the Podgorica Administrative Cap ital Budget disbursed to political parties €281,695.38, which was €18,304.62 less than projected under the Budget. The disbursed amount matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget of Podgorica Administrative Capital, with the realization equaling to 93.90%.

63 64

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.

Rožaje Municipality

Rožaje

20.

Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance of Rožaje Municipality, based on the Decision No. 273 dated April 10, 2012 and the Letter No. 290 dated April 16, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Rožaje municipal authority allowed and enabled CDT to have access the access to the required information within the legally prescribed deadline, by sending the accurate data on political parties funding of in 2011.

REGULAR FUNDING The projected 2011 Rožaje Municipal Budget amounted to €4,985,000.00, whereas, for the purposes of the Operating Budget, the projected amount was €3,223,596.80. The projected amount to be transferred to political parties was €31,916.8065 total, i.e. 0.99% of the 2011 Operating Budget. Upon Amendments and Supplements, the 2011 Rožaje Municipal Budget was reduced to €3,982,000.00, with the Operating Budget reduced to €3,032,511.87. The amount projected to be transferred to political parties was €30,024.87€66, i.e. 0.99% of the revised Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Rožaje stated that the transfers to political parties amounted to €22.849,45.67

Table 18: Funds disbursed for regular political parties funding in 201168 PARTY Democratic Party of Socialists Bosniak Party Social Democratic Party of Montenegro TOTAL

AMOUNT (IN €) 9,337.53 7,431.88 6,080.04 22,849.45

After the analysis of the received documents, we have concluded that Rožaje municipal authorities disbursed to political parties €7,175.42 less than projected under the Budget. The disbursed amount matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget of Rožaje, with the realization equaling to 76.10%.

Appropriation Ordinance for the 2011 Municipal Budget of Rožaje, Official Gazette of Montenegro: Municipal Ordinances No. 42/10 dated December 30, 2010. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Rožaje, Official Gazette of Montenegro: Municipal Ordinances, No. 35/11 dated November 24, 2011. Ordinance for Annual Statement of Accounts of the 2011 Municipla Budget of Rožaje, Official Gazette of Montenegro: Municipal Ordinances, No. 21/12 dated July 10, 2012. Official data obtained on the basis of the Law on the Free Access to Information.

Financing to Political Parties in 2011

21.

Šavnik Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance, Economic Development and Social Activities of Šavnik Municipality, based on the Deci sion No. 02437 and the Letter No. 02438 both dated April 11, 2012, as well as the official docu ments published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Šavnik municipal authority allowed and enabled CDT to have access, within the legally prescribed deadline, to the information about the regular political parties funding in the Municipality in 2011.

REGULAR FUNDING The projected 2011 Šavnik Municipal Budget was €1,669,891.99, whereas, for the purposes of the Operating Budget, the projected amount was €1,081,610.47. The projected amount to be transferred to political parties and factions was €5,381.0069, i.e. 0.50% of the 2011 Operating Budget. Upon Amendments and Supplements, the 2011 Šavnik Municipal Budget was reduced to €1,666,904.87, whereas the Operating Budget amounted to €1,112,623.35. The originally projected amount to be transferred to political parties was not changed and remained the same, i.e. €5,381.0070, i.e. it was 0.48% of the revised 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Šavnik stated that the transfers to political parties and factions amounted to €807.14.71

Table 19: Funds disbursed for regular political parties funding in 201172 PARTY Democratic Party of Socialists Socialist People’s Party TOTAL

AMOUNT (IN €) 403.57 403.57 807.14

After considering the documents published in the Official Gazette of Montenegro, as well as the An alytical Records that we were provided with by Šavnik Municipality, we have concluded that political parties were disbursed, as their regular funding, €807.14, i.e. €4,573.86 less than projected under the Appropriation Ordinance for the Municipal Budget of Šavnik.

Appropriation Ordinance for the 2011 Municipal Budget of Šavnik, Official Gazette of Montenegro: Municipal Ordinances No. 13/11 dated April 18, 2011. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Šavnik Official Gazette of Montenegro: Municipal Ordinances, No. 01/12 dated January 12, 2012. Appropriation Ordinance for the 2011 Municipal Budget of Šavnik, Official Gazette of Montenegro: Municipal Ordinances, No. 25/12 dated August 01, 2012. Official data obtained on the basis of the Law on the Free Access to Information.

Tivat Municipality

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. 0809up 27/2 dated April 17, 2012, as well as the official documents published in the Official Gazette of Mon tenegro: Municipal Ordinances. The relevant Tivat municipal authority allowed and enabled CDT to have access to the required in formation within the legally prescribed deadline, by sending the accurate data on the political parties financing in 2011.

REGULAR FUNDING The projected 2011 Tivat Municipal Budget amounted to €10,105,020.00, whereas the projected amount for the purposes of Operating Budget was €4,962,020.00. The amount projected to be trans ferred to political parties, factions and associations was €50,000.0073, i.e. 1.00% of the 2011 Oper ating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Tivat stated that the transfers to political parties, factions and associations amounted to €41,373.35.74

Table 20: Funds disbursed for regular political parties funding in 201175 PARTY Democratic Party of Socialists Social Democratic Party of Montenegro NOVA (New Serb Democracy) Croatian Civic Initiative Movement for Changes Serb People’s Party People’s Party Democratic Serb Party Serbian Radical Party Liberal Party TOTAL

AMOUNT (IN €) 13,808.13 5,016.53 5,016.53 3,917.60 3,917.60 2,818.60 1,719.60 1,719.60 1,719.60 1,719.60 41,373.35

After examining the provided documents, we have concluded that Tivat municipal authorities dis bursed €8,626.65€ less than projected under the Budget. The disbursed amount matches the one stated under the Annual Statement of Accounts of the 2011 Municipal Budget, with the realization equaling to 84.19%. 73

Appropriation Ordinance for the 2011 Municipal Budget of Tivat, Official Gazette of Montenegro: Municipal Ordinances, No. 01/10 dated December 12, 2011. Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Tivat, Official Gazette of Montenegro: Municipal Ordinances No. 24/12 dated July 30, 2012. Official data obtained on the basis of the Law on the Free Access to Information.

Financing to Political Parties in 2011

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 Decision No. 042016/212 dated Feb ruary 17, 2012, as well as the official documents published in the Official Gazette of Montenegro: Municipal Ordinances. The relevant Ulcinj municipal authority allowed and enabled CDT to have access to the required in formation within the legally prescribed deadline.

REGULAR FUNDING The projected 2011 Ulcinj Municipal Budget was €8,871,400.00, whereas the allocation for the pur poses of the Operating Budget was €6,203,900.00. The projected amount to be transferred to polit ical parties, factions and associations was €50,000.0076 total, i.e. 0.80% of the 2011 Operating Budget. The Ordinance for the Annual Statement of Accounts of the 2011 Municipal Budget of Ulcinj stated that the transfers to political parties, factions and associations amounted to €58,083.88.77 The Decision that we were provided with by the Secretariat for Finance and Budget of Ulcinj Mu nicipality stated that the funds projected by the Municipal Budget for regular political parties’ ac tivities during the reporting period (January 1st – December 31st 2011) had not been disbursed yet. Besides, it is unclear how the very high amount of funds disbursed to political parties was stated under the Annual Statement of Account if there was information from competent authorities that such disbursement had not taken place.

Appropriation Ordinance for the 2011 Municipal Budget of Ulcinj, Official Gazette of Montenegro: Municipal Ordinances, No. 14/11 dated April 28, 2011 Ordinance for the Annual Statement of the 2011 Municipla Budget of Ulcinj, Official Gazette of Montenegro: Municipal Ordinances, No.24/12 dated July 30, 2012.

Ulcinj Municipality

The scanned Decision made by the Secretariat for Finance and Budget of Ulcinj Municipality as of February 17, 2012

Financing to Political Parties in 2011

24.

Žabljak Municipality

The information obtained from the competent authorities of Žabljak Municipality were submitted by the email dated May 09, 2012. In addition to that, we used also the official documents published in the Official Gazette of Montenegro: Municipal Ordinances.

REGULAR FUNDING The projected 2011 Žabljak Municipal Budget amounted to €1,891,830.00, whereas, for the purposes of the Operating Budget, the projected amount equaled to €1,194,230.00. The projected amount to be transferred to political parties and councilor clubs was €14,500.0078 total, i.e. 1.21% of the 2011 Operating Budget. Upon Amendments and Supplements to the Appropriation Ordinance for the Municipal Budget79, Žabljak Municipal Budget was reduced to €1,218,155.00, whereas the Operating Budget was re duced to €768,205.00. In addition, the funds projected to be transferred to political parties were re duced to €2,100.00. Žabljak Municipality provided us only with the information about disbursement, but did not sent the pertaining Analytical Records.

Table 21: Funds disbursed for regular political parties funding in 201180 PARTY Serb People’s Party Democratic Serb Party TOTAL

AMOUNT (IN €) 800.00 100.00 900.00

Based on the foregoing, it can be concluded that the final analysis of regular political parties’ funding in Žabljak Municipality can be done properly only after the Annual Statement of Accounts of the 2011 Budget is approved.

Appropriation Ordinance for the 2011 Municipal Budget of Žabljak, Official Gazette of Montenegro: Municipal Ordinances, No. 13/11 dated April 18, 2011. Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2011 Municipal Budget of Žabljak, Official Gazette of Montenegro: Municipal Ordinances, No. 41/11 dated December 30, 2011 Official data obtained on the basis of the Law on the Free Access to Information.

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 in 2011 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.

Annexes

26.

Annexes

ANNEX A EXPLANATORY NOTES, CONCLUSIONS AND RECOMMENDATIONS OF THE STATE AUDIT INSTITUTION Pursuant to Article 4 of the Law on the State Audit Institution; Article 23 of the Law on Financ ing of Political Parties; and the Decision No. 401130438 of the Competent Board, the State Audit Institution carried out the audit of the 2011 annual financial statements of parliamentary political parties. The said audit was completed pursuant to the Law on the State Audit Institution; the Instruc tions on the Work Methodology of the State Audit Institution; the Rules of Procedure of the State Audit Institution; and International Standards on Auditing for public sector (INTOSAI). Based on the factual situation and the analysis of the replies given by the audited entities to the Preliminary Report of the SAI, while pursuant to Article 50 of the Rules of Procedure of the State Audit Institution, the Competent Board comprising Mr. Miroslav Ivanišević, President; Mr. Dragiša Pešić, a member of Senate; Mr. Milan Dabović Dsc(econ), a member of Senate, and Mr. Branislav Radulović LL.D, a member of Senate, in their meeting held on November 15, 2012, approved the following:

FINAL REPORT on the Audit of the 2011 Annual Financial Statements of Parliamentary Political Parties, with the Following Explanatory Notes, Conclusions and Recommendations: The State Audit Institution subjected the 2011 Annual Financial Statements of 11 (eleven) po litical parties and 2 (two) NonGovernmental Organizations namely the NGOs that comprises the Albanian Coalition Perspective and that are funded from the Budget of Montenegro to the audit concerned. Under the Final Report, in its Chapter II, the factual situation found is stated per audited entity and the recommendations are given for eliminating irregularities and short ages found in the operations of the audited entities. The Competent Board in charge of the present audit developed also a set of recommendations relating to improving the legislative framework that governs both political parties operations and activities of all audited entities. 1.

The audit has established that political parties do not keep their respective business books in the uniform manner and that they state their respective revenues, expenditures, assets and liabilities according to different accounting standards.

Financing to Political Parties in 2011

− For the purpose of ensuring the uniform accounting records, the Ministry of Finance is required to pass, by the end of the fiscal year, a document that will both govern the method of keeping the business books by political parties and establish the principles for stating political parties’ revenues, expenditures, assets, liabilities and fund sources. 2. The audit has found also that the government, through the Real Estate Directorate, funded office rents for four political parties {SNP (Serb People’s Party), NOVA (New Serb Democ racy), PzP (Movement for Changes) and Bošnjačka stranka (Bosniak Party)} and that the government assigned beneficial occupation of the state property to two political parties {DPS ((Democratic Party of Socialists) and SDP (Social Democratic Party of Montenegro)} − The Law on Financing of Political Parties is required to govern all forms of political party funding and competent authorities are required to apply the uniform method of governing the provision of business premises for political parties’ activities at both national and local level. 3. The audit has found that the majority of political parties did not establish appropriately an effective internal control system. − The audited entities are required to ensure through an effective internal control sys tem legal, costeffective and successful funds and other assets management and to enhance the sense of the responsibility of persons involved in using the funds and other assets. 4. The audit has found that all the audited parties paid out from the expense account significant cash amounts for salaries and benefits, fuel costs, telephone charges and vehicle mainte nance costs and alike. Besides, the audit has found that the substantiation of one portion of expenditures referring mainly to expense account, fuel costs, telephone charges and main tenance of equipment and covered from the cash account funds was made by certain par ties {DPS (Democratic Party of Socialists of Montenegro), BS (Bosniak Party), SNP CG (Serb People’s Party of Montenegro), NOVA (New Serb Democracy), DUA (Democratic Union of Albanians), DS u CG (Democratic League in Montenegro), and FORCA} based on the unreli able documentation (nonfiscal receipts). − The audited entities are required to reduce cash payments from cash account and to provide more reliable fiscal documentation to substantiate their expenses. 5. The audit has found that the revenues from local selfgovernments were not credited only to the primary accounts of parties, but they are credited also to the current accounts of mu nicipal committees of those parties. − For improving fiscal discipline and more effective funds management, the audited en tities are required to credit all the revenues gained on all grounds to their respective principal accounts..

Annexes

6. The audit has found that one number of parties {(Serb People’s Party of Montenegro) and NOVA (New Serb Democracy)} did credit financing of natural persons through lending by parties’ members. It has also found that certain parties pay electoral campaignrelated ex penses from the funds intended for regular activities of parliamentary parties. − The Law on Financing of Political Parties is required to govern precisely the matter of lending that certain political parties use as a form of credit financing. 7. The audit has found that, out of the total revenues generated by the audited parties, more than 90.00% are from the Budget of Montenegro and budgets of local selfgovernments. − The State Audit institution is of the opinion that it is required to consider a possibility to make the parties funded from the Budget sources (i.e. parliamentary parties) sub ject to the Law on Public Procurement. 8. The audit has found that, in 2011, in addition to the funds amounting to € 3,158,044.00 that the Budget allocated to political parties for their regular activities also the funds amounting to €247,186.00 were allocated by the Budget of the Parliament of Montenegro for gross salaries of the staff in councilor clubs. Besides, it has been established that two parties {NOVA (New Serb Democracy) and Bošnjačka stranka (Bosniak Party)} did not use the funds entirely for gross salaries of the staff in councilor clubs, since the tax and contribution bases were not respected in the pertaining calculations. − The Parliament of Montenegro should make fund transfers for councilor clubs’ oper ations to the current accounts of their respective political parties and in such manner to avoid exceeding the prescribed 0.5% limit out of the Operating Budget amount that was defined under the Law on Financing of Political Parties. Therefore, the payments to the councilor clubs’ staff shall be at the expense of the funds allocated to political parties for their regular activities and through direct payment of salaries to those persons.

Miroslav Ivanišević President of the Senate

Financing to Political Parties in 2011