Financing to Political Parties from Budget and Private Funds in 2009 by CDT Crna Gora

Financing to Political Parties from Budget and Private Funds in 2009

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

Podgorica, December 2010

Financing to Political Parties from Budget and Private Funds in 2009

IMPRESSUM PUBLICATION Financing to Political Parties from Budget and Private Funds in 2009 PUBLISHER Center for Democratic Transition VII Omladinske bb 81 000 Podgorica, Montenegro Tel: +382 20 207 070, 207 071 Tel/Fax: +382 20 207 072 E mail: cdtmn@t com.me www.cdtmn.org FOR THE PUBLISHER Dragan Koprivica PROJECT AUTHORS Dragan Koprivica i Milica Kovačević PROJECT COORDINATOR Milivoje Krivokapić RESEARCHERS Biljana Pejović, Boško Milović, Đorđije Brkuljan i Milivoje Krivokapić TRANSLATOR Ana Knežević PREPRESS AND GRAPHIC DESIGN Blažo Crvenica PRINTING AP Print, Podgorica CIRCULATION 800

Citing and using the material and information contained therein for not-for-profit publications or in public media, while for the purpose of informing the citizens, as well as the use thereof for other non-commercial 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. Montenegro..........................................................................................6 3. Andrijevica Municipality ................................................................9 4. Bar Municipality ..............................................................................11 5. Berane Municipality ......................................................................13 6. Bijelo Polje Municipality ..............................................................15 7. Budva Municipality ........................................................................17 8. Cetinje, Historical Capital ............................................................20 9. Danilovgrad Municipality ............................................................22 10. Herceg Novi Municipality..........................................................24 11. Kolašin Municipality ..................................................................26 12. Kotor Municipality ......................................................................28 13. Mojkovac Municipality ..............................................................30 14. Nikšić Municipality ......................................................................32 15. Plav Municipality..........................................................................35 16. Plužine Municipality ..................................................................36 17. Pljevlja Municipality....................................................................37 18. Podgorica, Administrative Capital ........................................38 19. Rožaje Municipality ....................................................................41 20. Šavnik Municipality ....................................................................42 21. Tivat Municipality ........................................................................43 22. Ulcinj Municipality ......................................................................45 23. Žabljak Municipality....................................................................47 24. Financing to Parties from the Private Funds ....................49 25. Analysis of Legislative Framework ......................................55

Financing to Political Parties from Budget and Private Funds in 2009

Introduction

Dear readers, This is the Publication titled “Financing to Political Parties in 2009”, which is the outcome of the re

search project done by the Center for Democratic Transition (CDT) along with the support by the Balkan Trust for Democracy (BTD). The aim of the publication and research concerned as a whole is to give a comprehensive review of funding for the regular activities of political parties, as well as of the allocated funding for the electoral campaigns of parties and candidates from the public and private sources. 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 the local self government authorities provided us with pursuant to the Law on the Free Access to Information, as well as reports by political parties published on the Web Site of the State Electoral Commission (SEC). In addition to the Introduction, the present publication includes 24 chapters total. The following 22 chapters give a review of the funding to political parties from the Budget sources in 2009, at national level and per individual municipality. Besides the statistics on payments made to political parties, the present publication compares the obtained data to the provisions of governing laws. Chapter 24 analyses the funding to political parties from private funds. The last one, i.e. Chapter 25, gives a de

tailed analysis of the legislative framework, in order to facilitate your reading and understanding of individual analyses of the funding concerned. According to the National Budget Revision, the regular funding to political parties in 2009 was pro

jected as €1,951,409.53, and the projected amount was paid to the parties. In 2009, the budgets of local self government units in Montenegro projected that the amount of €1,345,731.46 would be allocated for regular activities of political parties holding seats in municipal councils. According to our findings, regular functions of political parties were allocated €854,339.71 total, which is €491,391.75 less than the amount projected by the budgets. Even 13 Montenegrin municipalities paid fewer funds to political parties than projected under their respective appropri

ation ordinances for the budgets. Three municipalities, namely Budva, Cetinje and Ulcinj, did not make any payment to political parties in 2009. The major difficulty in the enforcement of the Law on Financing of Political Parties refers to a low level of transparency of financing to political parties and a lack of control in the area. We consider that the identified shortages are due to deficiencies and incompleteness in the legislative framework

primarily in the Law on Financing of Political Parties, i.e. particularly in its segment that governs the assurance of financing transparency, the defining of control mechanisms and authorities and ca

pacities of institutions in charge of controls, and the initiation of procedures against the ones that have violated the Law.

Introduction The Analytical Report of the European Commission emphasizes that “legal framework on financing of political parties and electoral campaigns have important deficiencies”. As an important deficiency, the European Commission stated that:„Supervisory authorities lack the full legal powers and the ca

pacity to ensure enforcement of the legislation on the control over the financing of political parties”. In addition, the GRECO Evaluation Report on Montenegro Transparency of Party Funding concluded: „the weakest area undoubtedly being the largely inefficient control of political finances“. The CDT considers that it is necessary to make amendments and supplements to the Law on Financ

ing of Political Parties and to strengthen the control mechanisms in the area, as well as to ensure transparency of party funding. Therefore, we hope that our research will launch a discussion on a need for additional monitoring of the enforcement of regulations governing political parties financ

ing and encourage the competent authorities and other stakeholders to adopt better legal solutions in order to prevent similar negative effects in the future.

Financing to Political Parties from Budget and Private Funds in 2009

Montenegro

The information sources we used are the documents that CDT was provided with by the Ministry of Finance, based on the Decision No. 08 4075/1 dated April 13, 2010, as well as the official documents published in the Official Gazette of Montenegro.

PARLIAMENTARY ELECTIONS Results of the Parliamentary Elections – March 29, 2008

The Budget funds necessary to cover the electoral campaign expenditures, according to the Law on Financ

ing of Political Parties, are 0.15% of the Operating Budget5. Pursuant to the 2009 Budget Law of Montenegro, the Operating Budget is €687,041.332.66, meaning that the electoral campaign of the political parties should have received €1,030,562.00 of which 20.00% (€206,112.40) to be transferred to the applicants of the confirmed electoral lists and 80.00% (€824,449.60) to the applicants of the electoral lists that won seats, in proportion to the number of seats won. If the provisions of the Law are applied consistently, it can be found the amount of €12,882.02 as the one that should have been paid to each of the sixteen confirmed electoral lists as the compensation for the elec

toral campaigning expenditures. However, the Ministry of Finance communicated officially on March 16th that the Operating Budget reserves appropriated €1,360,000.00 for financing the electoral campaigns of the political parties and that 20.00% of those funds, i.e. €227,000.000 should be transferred to the applicants of the (sixteen) electoral lists in the equal amounts of €17,000.00 apiece. In order to cover the electoral campaign expenditures, also the fixed budget funds were provided in the 5

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

Montenegro amount of 0.05% of the Operating Budget (€343,520.67) that should have been transferred upon the elec

tions to the (eight) lists that won seats, in proportion to the number of seats won and provided that the lists raised double amount of funds from private sources relative to the amount appertaining to them upon the distribution of 20.00% of the funds appropriated under the Budget. The documents provided by the Ministry of Finance made possible to derive a conclusion that no transfer on these grounds was made.

Table 1: Funds received by the parties for the 2009 Parliamentary elections2

PARTY Democratic Party of Socialists Socialist People’s Party New Serb Democracy Movement for Changes Democratic Union of Albanians Democratic Alliance in Montenegro Civic Initiative Tuzi New Democratic Power FORCA Bosniak Democratic Party Fatherland Serbian Party List

Docent Dr Aleksandar Stamatović People’s Party Party of Democratic Prosperity League of Communists of Yugoslavia – Communists of Montenegro Serb National List Pensioners and Disabled Workers’ Party For a Different Montenegro TOTAL

FOR THE EXPENSES FOR THE INCURRED BY THE SEATS IN THE ELECTORAL PARLIAMENT COMMISSION 17,000.00 664,740.70 17,000.00 214,913.60 17,000.00 107,456.80 17,000.00 76,160.50 17,000.00 13,432.10 17,000.00 13,432.10 17,000.00 13,432.10 17,000.00 13,432.10 17,000.00 0.00

SUBTOTAL 661,740.70 231,913.60 124,456.80 84,160.50 30,432.10 30,432.10 30,432.10 30,432.10 17,000.00

17,000.00

0.00

17,000.00

17,000.00 17,000.00

0.00 0.00

17,000.00 17,000.00

17,000.00

0.00

17,000.00

17,000.00 17,000.00 17,000.00 272,000.00

0.00 0.00 0.00 1,088,000.00

17,000.00 17,000.00 17,000.00 1,360,000.00

REGULAR FINANCING The 2009 Budget Law of Montenegro projected the total amount of the Budget funds to be €1,623,684,943.65, out of which €687,041,332.66 for the Operating Budget.3 The funds for the activities of the parliamentary parties were projected as €2,716,165.33, which was 0.4% of the Operating Budget. After approving amendments and supplements, the 2009 Budget of Montenegro was decreased to €1,526,705,864.01, out of which €803,280,931.97 was projected as Operating Budget.4 The funds for the activities of the parliamentary parties were projected as €1,951,409.53, which was 0.29% of the Operating Budget. The Law on the Annual Statement of Accounts of the 2009 Budget of Montenegro projected the funds for the parliamentary parties as the amount of €1,951,409.53, whereas €1,951,409.535 were dis

bursed, which was 100.00% projected funds transfer. 2 3 4

Official data obtained on the basis of the Law on the Free Acess to Information. The 2009 Budget Law of Montenegro, Official Gazette of Montenegro, No. 082/08 14, December 31, 2008. The Law on the Amendments and Supplements to the 2009 Budget Law of Montenegro, Official Gazette of Montenegro, No. 051/09 1 as of August 04, 2009. The Law on the Annual Statement of Accounts of the 2009 Budget of Montenegro, Official Gazette of Montenegro, no. 074/10 5 as of December 17, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

Table 2: Funds paid for regular financing of the parties in 20096 PARTY Democratic Party of Socialists Socialist People’s Party Social Democratic Party Movement for Changes New Serb Democracy Serb People’s Party Bosniak Party Democratic Alliance in Montenegro Democratic Union of Albanians, DUA Croatian Civic Initiative Civic Initiative Tuzi People’s Party New Democratic Power FORCA People’s Socialist Party Liberal Party Democratic Serb Party Democratic Party of Unity Serbian Radical Party Albanian coalition Perspective TOTAL

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

AMOUNT (IN €) 721,803.50 279,046.38 189,383.02 179,046.17 107,232.93 88,514.26 75,463.80 43,454.89 43,454.89 43,454.89 39,279.04 25,886.42 22,458.66 16,939.65 16,939.65 16,939.65 16,939.65 16,939.65 8,232.43 1,951,409.53

Andrijevica Municipality

The information sources we used are the documents that CDT was provided with by the Secre

tariat for Local Self Government Affairs of Andrijevica Municipality, based on the Decision No. 051 3 2010 041/1 as of April 14, 2010, as well as the official documents published in the Of

ficial 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 the financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Andrijevica Municipality was €1,570,446.53, whereas, according to the formula, the Operating Budget was €915,446.53. The projected amount to be transferred to political parties, factions and associations was €9,154.467 total, which was 1.00% of the 2009Operating Budget. Upon the amendments and supplements to the 2009 Budget of Andrijevica Municipality, the Budget was reduced to €1,254,446.53, whereas, according to the formula, the Operating Budget was €848,446.53. The projected amount to be transferred to political parties, factions and asso

ciations was €8,484.468 total, which was 1.00% of the 2009Operating Budget. The Annual Statement of Accounts of the 2009 Municipal Budget of Andrijevica stated that the projected amount to be transferred to political parties, factions and associations was €8,484.46, and €8,484.469, i.e. 100.00% of the projected funds transfer was paid.

Appropriation Ordinance for the 2009 Municipal Budget of Andrijevica, Official Gazette of Montenegro – Municipal Ordinances, No. 011/09 29. as of March 27, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Andrijevica, Official Gazette of Montenegro – Municipal Ordinances, No. 001/10 5. as of January 4, 2010. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Andrijevica Municipality, Official Gazette of Montenegro - Municipal Ordinances, No. 028/10 06 as of August 17, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

Table 3: Funds paid for regular financing of the parties in 200910 PARTY Democratic Party of Socialists Socialist People's Party Serb People’s Party Social Democratic Party People’s Socialist Party Serbian Radical Party – Dr. Vojislav Šešelj People’s Party Democratic Serb Party Movement for Changes TOTAL

AMOUNT (IN €) 2,700.14 2,234.99 1,071.79 605.85 374.35 374.35 374.35 374.35 374.29 8,484.46

The documents published in the Official Gazette, as well as the Analytical Records we were pro

vided with by the said Andrijevica municiapl authority, have shown that the financing of polit

ical parties’ regular activities in this Municipality in 2009 was done within the legally prescribed deadlines.

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

Bar Municipality

The information sources we used are the documents that CDT was provided with by the Secre

tariat for Economy and Finance of Bar Municipality based on the Decision. No. 032 05 u1 4

24 as of April 16, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Bar Municipality authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on the regular fi

nancing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Bar Municipality was €44,607,730.00, whereas, according to the formula, Operating Budget was 27,907,730.00. The projected amount to be transferred to po

litical parties, factions and associations was €110,000.0011 total, i.e. 0.4% of the 2009 Operating Budget. Upon the Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Bar, the Budget was reduced to €27,850,000.00, and the Operat

ing Budget was reduced to €23,350,000.00, whereas the amount projected for political parties was 101,000.00€12, i.e. 0.4% of the Operating Budget. The Annual Statement of Accounts of the 2009 Municipal Budget of Bar stated that the projected amount to be transferred to political parties was €101,000.00, whereas the amount of €100,831.5013, i.e. 99.8% of the projected funds transfer, was effected.

Appropriation Ordinance for the 2009 Municipal Budget of Bar, Official Gazette of Montenegro – Municipal Ordinances, No. 039/08 128 as of December 29, 2008. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Bar, Official Gazette of Montenegro – Municipal Ordinances, No. 042/10 3 as of December 29, 2010 Ordinance for the Annual Statement of Accounts of the 2009 Budget of Bar Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 028/10 19 as of August 17, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

Table 4: Funds paid for regular financing of the parties in 200914 PARTY Democratic Party of Socialists Social Democratic Party Movement for Changes Serb People’s Party Socialist People's Party Civic Party Democratic League Liberal Party People’s Party People’s Serb Party Bosniak Party TOTAL

AMOUNT (IN €) 34,705.00 13,277.00 13,277.00 8,514.00 6,138.00 6,138.00 3,756.50 3,756.50 3,756.50 3,756.50 3,756.50 100,831.50

The documents published in the Official Gazette, as well as the Analytical Records we were pro

vided with by the relevant Bar municipal authority, have shown that the financing of political parties’ regular activities in this Municipality in 2009 was done within the legally prescribed deadlines.

Official data obtained on the basis of the Law on the Free Acess 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 No. 06 401 107/1 as of April 13, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Berane Municipality authority allowed and ensured CDT, within the legally pre

scribed deadline, the access to the required information by sending the accurate data on the regular financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Berane Municipality was €8,918,000.00, whereas, according to the formula, the Operating Budget was €6,218,000.00. The projected amount of funds to be transferred to political parties was 50,000.00€15, i.e. 0.8% of the 2009 Operating Budget. Upon the Ordinance for the Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Berane, the Budget of Berane Municipality was increased to €9,042,357.00, the Operating Budget was increased to €6,342,357.00, whereas the amount projected for political parties’ purposes was left the same, i.e. €50,000.0016, which amounted to 0.78% of the Operating Budget. The Annual Statement of Accounts of the 2009 Municipal Budget of Berane stated that the pro

jected amount to be transferred to political parties and associations was €50,000.00, whereas the amount of €37,750.70€17 was disbursed, amounting to 100.00% of the projected funds transfer.

Appropriation Ordinance for the 2009 Municipal Budget of Berane, Official Gazette of Montenegro – Municipal Ordinances, No. 040/08 160 as of December 31, 2008. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Berane, Official Gazette of Montenegro – Municipal Ordinances, No. 041/09 014. as of December 22, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Berane Municipality, Official Gazette of Montenegro - Municipal Ordinances, No.. 036/10 3 as of November 01, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

Table 5: Funds paid for regular financing of the parties in 200918 PARTY Democratic Party of Socialists Socialist People’s Party Serb People’s Party Movement for Changes People’s Party Social Democratic Party Party of Serb Radicals Democratic Serb Party People’s Socialist Party TOTAL

AMOUNT (IN €) 15,000.00 7,900.00 4,200.00 3,000.00 2,850.00 1,000.00 800.00 750.00 200.00 35,700.00

By comparing the amounts stated under the documents we were provided with by the relevant Berane municipal authority and the ones stated under the Ordinance for Amendments and Sup

plements to the Appropriation Ordinance for the 2009 Municipal Budget of Berane, as well as the amounts stated under the Annual Statement of Accounts of the 2009 Budget of Berane Mu

nicipality, we have concluded that political parties in the municipality concerned were dis

bursed €14,300.00 less than projected.

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

Bijelo Polje Municipality

The information sources we used are the documents provided to CDT by the Municipal Manager Office, Bijelo Polje Municipality, based on Decision No.01 191 as of September 14, 2010, as well as official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Bijelo Polje municipal authority permitted and ensured CDT the access to the re

quired information, by providing accurate data on financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Bijelo Polje Municipality amounted to €15,060,000.00, whereas, according to the formula, the Operating Budget was €7,050,000.00. The projected amount for political parties was €70,000.0019 total, i.e. 0.99% of the 2009 Operating Budget. Upon amended and supplemented Appropriation Ordinance for the 2009 Municipal Budget of Bijelo Polje, the Budget was reduced to €13,246,500.00, whereas, according to the formula, the Operating Budget amounted to €7,406,500.00. The projected amount for political parties was 70,000.00€20 total, i.e. 0.95% of the 2009 Operating Budget. The Annual Statement of Accounts of the 2009 Municipal Budget of Bijelo Polje stated that the projected amount to be disbursed to political parties was €70,000.00, whereas the amount of €56,327.21€21, i.e. 80.47% of the projected funds transfer, was disbursed.

Appropriation Ordinance for the 2009 Municipal Budget of Bijelo Polje Official Gazette of Montenegro – Municipal Ordinances, No. 001/09 38 as of January 15, 2009 . Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Bijelo Polje, Official Gazette of Montenegro – Municipal Ordinances, No. 003/10 5. as of January 21, 2010 . Ordinance for the Annual Statement of Accounts of the 2009 Budget of Bijelo Polje Municipality Official Gazette of Montenegro – Municipal Ordinances, No. 018/10 6 as of May 18, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

Table 6: Funds paid for regular financing of the parties in 200922 PARTY Democratic Party of Socialists Serb People’s Party Socialist People's Party Social Democratic Party Serbian Radical Party – Dr. Vojislav Šešelj Unity of Muslims and Bosniaks Liberal Party People’s Party Movement for Changes Bosniak Party Democratic Serb Party TOTAL

AMOUNT (IN €) 20,000.00 7,974.81 6,500.00 5,100.00 3,071.60 2,841.82 2,700.00 2,500.00 2,300.00 1,524.00 1,300.00 55,812.23

By comparing the documents we were provided with by the relevant Bijelo Polje municipal au

thority and the data published in the Official Gazette, we have noted a discrepancy between the amount disbursed to political parties and stated under the Annual Statement of Accounts of the 2009 Budget of Bijelo Polje Municipality and the one we have reached to by considering the An

alytical Records. Namely, the Annual Statement of Accounts of the 2009 Budget of Bijelo Polje Municipality stated the amount of €56,327.21 as the one disbursed to political parties, whereas the Analytical records have shown that the amount of €55,812.23 as the disbursed one. Besides, the calculations we applied have revealed that political parties in Bijelo Polje Municipality were disbursed €14,187.77 less than projected under the Budget.

Official data obtained on the basis of the Law on the Free Acess 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 the Decision No. 042 01 4

171/2 as of April 15, 2010, as well as the official documents published in the Official Gazette of Budva Municipality. Budva Municipality responded to the Request for the Free Access to Information within the legally prescribed deadline.

ELECTIONS OF COUNCILORS Results of the Election of Councilors March 29, 2009

The funding of the electoral campaign of the parties was governed by the Law on Financing of Political Parties23. Accordingly, for the local elections campaigning expenditures of Budva Mu

nicipality, the funds amounting to 0.15% of the Operating Budget of the Municipality which was projected as €45,711,200,00€24 for the year concerned should have been allocated, i.e. €68,566.80.

23 24

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08 Appropriation Ordinance for the 2009 Budget of Budva Municipality, Official Gazette of Budva Municipality, No. 17/08 dated December 30, 2008.

Financing to Political Parties from Budget and Private Funds in 2009 Pursuant to Article 11, paragraphs 2 and 3, of the above mentioned Law25, the funds in the amount of 20% were to be distributed in equal amounts to the applicants of electoral lists within eight days after the confirmation of such electoral lists. Funds amounting to 80% were to be distributed to the applicants of the electoral lists that had won seats in the Municipal Council, proportionate to the number of the seats won. Based on the request for the free access to information, the Secretariat for Economy and Finance of Budva Municipality informed CDT that a total amount of €1,545.20 was paid from Budva Municipality Budget to the confirmed electoral lists, specifically €515.28 to the DPS SDP Coalition and €1,029.92 to the Movement for Changes. Four electoral lists (SNP NS NSD and LP DC) contested in the elections for Councilors to Budva Municipal Council, and we were not provided with any piece of information about whether the Municipal Budget had disbursed any funds to the two remaining lists. Besides, we did not receive any piece of information either as regards the other portion (80%) of the funds which were to be allocated according to the Law to the parties that had won seats in the Municipal Council.

The scanned Decision made by the Secretariat for Economy and Finance of Budva Municipality, dated April 15th 2010.

1) The amount of €515.28 was disbursed to the DPS SDP Coalition The amount of €515.28 EUR was disbursed to Movement for Changes 2) The amount of €514.64 EUR was disbursed to Movement for Changes

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

Budva Municipality

REGULAR FINANCING The projected 2009 Budget of Budva Municipality amounted to €107,788,000.00, whereas, ac

cording to the formula, the Operating Budget was €45,711,000.00€. The projected amount to be disbursed to political parties was €120,000.00 , i.e. 0.26% of the 2009 Operating Budget

which is far below the legally prescribed minimum. Upon amendments and supplements, the 2009 Municipal Budget of Budva was reduced to €44,242,000.00 , whereas, according to the formula, the Operating Budget was €29,717,900.00. The said Ordinance for Amendments and Supplements to the Appropriation Ordinance for the Municipal Budget did not project under any entry any amount of funds to be disbursed for reg

ular activities of political parties having their councilors in the Municipal Council of Budva. The Annual Statement of Accounts of the 2009 Budget of Budva Municipality was published in the Official Gazette of Montenegro – Municipal Ordinances , with no single entry stating an al

location to finance regular activities of political parties. By their Decision, the relevant Budva municipal authority informed that between January 1st and December 31st 2009 no disbursement of any funds was made for the regular activities of political parties having their councilors in the Municipal Council of Budva.

The scanned Decision made by the Secretariat for Economy and Finance of Budva Municipality, dated April 15th 2010.

Between January 1st and December 31st 2009 no disbursement of any funds was made for the regular activities of political parties having their respective councilors in the Municipal Council of Budva.

27 28

Appropriation Ordinance for the 2009 Budget of Budva Municipality, Official Gazette of Budva Municipality, No. 009/08

33. dated December 30, 2009. Decision was published at: http://www.opstinabudva.com/5sjednica.htm Ordinance for the Annual Statement of Accounts of the 2009 Budget of Budva Municipality, Official Gazette of MontenegroMunicipal Ordinances, No. 039/10 2, as of December 03, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

Cetinje, Historical Capital

The information sources we used are the documents provided to CDT by the Secretariat for Econ

omy, Development and Finance of Cetinje Historical Capital, based on Decision No. 04 061/10

1769 as of April 19, 2010, as well as official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Cetinje municipal authority allowed and ensured CDT the access to the required information within the prescribed deadline, by providing data on financing to political parties.

REGULAR FINANCING The projected 2009 Budget of Cetinje Historical Capital amounted to €7,640,000.00, whereas, according to the formula, the Operating Budget was €6,407,700.00. The projected amount for political parties, factions and associations was €51,465.0029 total, i.e. 0.8% of the 2009 Operating Budget. The Annual Statement of Accounts of the 2009 Budget of Cetinje Historical Capital stated that the projected amount to be transferred to political parties was €51,465.0030; however, no dis

bursement of any funds at all was made out of the projected amount. The documents we were provided with by Cetinje Historical Capital have shown that Cetinje Historical Capital did not make any disbursement to political parties having their respective councilors in the Municipal Council of Cetinje and, therefore, the legally prescribed deadline was disregarded.

Appropriation Ordinance for the 2009 Budget of Cetinje Municipality, Official Gazette of Montenegro - Municipal Ordinances, No. 013/09 7 dated April 13, 2009 Appropriation Ordinance for the 2009 Budget of Cetinje Historical Capital, Official Gazette of Montenegro - Municipal Ordinances, No. 028/10 116 dated August 17, 2010

Cetinje, Historical Capital

The scanned Decision made by the Secretariat for Economy, Development and Finance, of Cetinje, Historical Capital dated April 19th 2010.

During the procedure undertaken upon the request, the authority found that the funds intended for financing the regular activities of the parties holding seats in the Council of Cetinje Historical Capital had been projected for the period January 1st to December 31st 2009, but they had not been disbursed.

Financing to Political Parties from Budget and Private Funds in 2009

Danilovgrad Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance of Danilovgrad Municipality, based on the Decision No. 03 032 3 1461/1 dated April 12, 2010 and the Letter No. 03 032 3 1699/1 dated April 15, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The Municipal authority in charge allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on financing to political parties.

REGULAR FINANCING The projected 2009 Budget of Danilovgrad Municipality amounted to €6,270,000.00 and, accord

ing to the formula, the Operating Budget was €4,131,900.00. The amount to be disbursed to po

litical parties was projected as €52,000.00031, i.e. 1.25% of the 2009 Operating Budget – which is more than the legally prescribed maximum. The Annual Statement of Accounts of the 2009 Municipal Budget of Danilovgrad stated that the projected amount to be transferred to political parties, factions and associations was 52.000,00€, whereas the amount of €51,995.0432, i.e. 99.99% of the projected funds transfer, was disbursed.

Appropriation Ordinance for the 2009 Municipal Budget of Danilovgrad, Official Gazette of Montenegro – Municipal Ordinances, No.012/09 7 as of April 04, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Danilovgrad Municipality, Official Gazette of Montenegro - Municipal Ordinances, No. 030/10 10 as of September 21, 2010.

Danilovgrad Municipality

Table 7: Funds paid for regular financing of the parties in 200933 PARTY Democratic Party of Socialists Socialist People's Party of Montenegro Movement for Changes Social Democratic Party of Montenegro Serb People’s Party People’s Party People’s Socialist Party Democratic Serb Party Miljan Stanišić34 Dražen Radonjić35 TOTAL

AMOUNT (IN €) 19,841.28 6,471.36 5,673.24 5,407.20 3,810.96 2,798.88 2,798.88 2,798.88 1,596.24 798.12 51,995.04

The analysis of the available documents has revealed that Danilovgrad Municipality disbursed to political parties 1.25% of the total Budget funds decreased by the amount of the Capital Budget, i.e. 0.25% more than the legally prescribed maximum. The amounts stated under the Analytical Records match the amounts stated under the Annual Statement of Accounts.

33 34 35

Official data obtained on the basis of the Law on the Free Acess to Information. Councilor that left Serb People’s Party Club. Councilor that left Movement for Changes Club.

Financing to Political Parties from Budget and Private Funds in 2009

10.

Herceg Novi Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economic Development of Herceg Novi Municipality, based on the Decision No. 02 2 2 226

100 as of April 23, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant municipal authority of Herceg Novi allowed, after the complaint tabled to the Chief Admin

istrator, and ensured CDT the access to the required information, by providing accurate data of financing to political parties in 2009.

ELECTION OF THE MUNICIPAL MANAGER Results of the Election of the Municipal Manager (%) March 29, 2009

According to the Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers36, an amount ranging between 0.05% and 0.1% of the Operating Municipal Budget was to be provided for electoral campaign expenditures for municipal manager election. The 2009 Operating Budget of Herceg Novi Municipality was €10,881,000.00, meaning that an amount ranging between €5,440.50 and €10,881.00 should have been provided for the campaign expenditures. Nevertheless, under the specific entry (no. 431220 20), the expenditures stated as €20,000.00 for the electoral campaign funding were prescribed, making the amount significantly higher than the legally mandated funds. However, the Amendments and Supplements to the Appro

priation Ordinance for the 2009 Municipal Budget of Herceg Novi stated that the campaign expen

ditures were €11,000.00, i.e. very close to the legally mandated maximum.

Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers, Official Gazette of Montenegro, No. 08/09

Herceg Novi Municipality The Decision No. 50/09 made by the Municipal Electoral Commission and dated March 09, 2009 projected the amount of €366.66 to be disbursed to each candidate, for electoral campaign expenses. The Decision No. 50 1/09 made by the Municipal Electoral Commission and dated April 09, 2009 stated that Mr. Dejan Mandić (SNP candidate) and Mr. Zoran Bošnjak (DPS candidate) were to be disbursed €2,200.00 each, as candidates who had won more than 10.00% votes in the election of the Municipal Manager. Finally, the Decision No. 50

2/09 made by the Municipal Electoral Commission and dated April 09, 2009 prescribed that Mr. Dejan Mandić (SNP candidate) as the candidate who had won the majority of votes in the election was to be paid €5,500.00. By adding the numbers, we have reached to the sum of €10,999.98 projected for financing the electoral cam

paign for the election of municipal manager. The stated amounts match the payments referred to as made under the Analytical Records we were provided with by the relevant municipal authority of Herceg Novi. The amounts paid to the candidates match also the amount projected for the purpose by the Budget.

REGULAR FINANCING The 2009 Budget of Herceg Novi Municipality was projected to be €21,665,000.00, whereas, according to the formula, the Operating Budget was €10,881,000.00. The amount to be transferred to political parties, factions and associations has been projected as €85,000.0035, i.e. as 0.8% of the 2009 Operating Budget. The Appropriation Ordinance for the Budget projected also €25,000.00 for the expenses to cover office rents for parties holding seats in the Council. Upon approving the Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Herceg Novi, the Budget was increased to €10,957,140.00, whereas the Operating Beget was reduced to €8,803,890.00. Also the amount to be transferred to political parties was reduced to €70,000.0036, i.e. to 0.78% of the Operating Budget. The Appropriation Ordinance for the Municipal Budget projected also the amount of €18,000.00 for the expenses to cover office rents for parties holding seats in the Council. The Annual Statement of Accounts of the 2009 Budget of Herceg Novi Municipality stated that the pro

jected amount to be transferred to political parties was €70,000.00, whereas the amount of €54,526,0037, i.e. 77.89% of the projected funds transfer, was disbursed.

Table 8: Funds paid for regular financing of the parties in 200940 PARTY Socialist People's Party of Montenegro People’s Party New Serb Democracy Democratic Party of Socialists Movement for Changes Party of Serb Radicals Democratic Center of Boka Social Democratic Party of Montenegro TOTAL

AMOUNT (IN €) 26,400.00 5,980.00 5,100.00 4,800.00 4,300.00 2,260.00 1,100.00 115.00 50,055.00

By comparing the obtained documents to the documents published in the Official Gazette, we have con

cluded that Herceg Novi Municipality disbursed €19,945.00 less than the amount projected for financing to political parties for their regular activities in the Municipality. Besides, we have found also the dis

crepancy between the paid amount stated under the Annual Statement of Accounts and the one that is reached by summing up the amounts stated under the Analytical Records. 37

Appropriation Ordinance for the 2009 Municipal Budget Hecreg Novi, Offical Gazette of Montenegro Municipal Ordinances, No. 007/09 5, February 18, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Herceg Novi, Official Gazette of Montenegro – Municipal Ordinances, No. 035/09 20 as of November 9, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Herceg Novi Municipality, Official Gazette of Montenegro- Municipal Ordinances, No. 031/10 39 as of November 01, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Financing to Political Parties from Budget and Private Funds in 2009

11.

Kolašin Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance of Kolašin Municipality, based on the Letter No. 04 177/YU 6 dated September 30, 2010 and the Decision No. 04 177/YU 7 dated October 01, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. After the complaint tabled to the Chief Administrator, the relevant Kolašin municipal authority allowed and ensured CDT the access to the required information by sending the accurate data on financing to po

litical parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Kolašin Municipality was €5,918,759.00, whereas, according to the formula, the Operating Budget was €3,529,759.00. The amount projected to be transferred to po

litical parties and councilors was projected as €35,297.0041, i.e. as 1.00% of the 2009 Operating Budget. Upon amendments and supplements, the 2009 Municipal Budget of Kolašin was reduced to €4,858,072.00, whereas, according to the formula, the Operating Budget was €4,071,572.00. The amount projected to be transferred to political parties was 40.700,00€42, i.e. 1.00% of the 2009 Op

erating Budget.

The Annual Statement of Accounts of the 2009 Municipal Budget of Kolašin stated that the pro

jected amount to be transferred to political parties was 40.700,00€, and 6.839,05€43, i.e. 16.80% of the projected funds transfer was paid. Kolašin municipal authorities forwarded the foregoing Letter stating that political parties were dis

bursed €6,839.05 from the Budget in 2009, but not indicating which amount was paid to each party. Besides, the same Letter stated that accounts payable to political parties amounted to €90,851.59 as at December 21, 2009 and that the said accounts payable originated from the labor (employment) relations and that they were cases pending court rulings. You can see the Letter concerned scan here.

Appropriation Ordinance for the 2009 Municipal Budget of Kolašin, Official Gazette of Montenegro – Municipal Ordinances, No. 039/09 74. as of December 29, 2008 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Kolašin, Official Gazette of Montenegro – Municipal Ordinances, No. 003/10 71. as of January 21, 2010. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Kolašin Municipality, Official Gazette of Montenegro - Municipal Ordinances, No. 041/10 41 as of December 21, 2010.

Kolašin Municipality

The scanned Decision made by the Secretariat for Economy and Finance of Kolašin Municipality, dated September 30th 2010.

In 2009, the amount of €6,839.05 was disbursed from the 2009 Budget funds to political parties

The liabilities to be settled to political parties stem from the previous years and they are pending court rulings

Financing to Political Parties from Budget and Private Funds in 2009

12.

Kotor Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economy based on the Decisions Nos. UP 04 18/10 and UP 0401 19/10 as of April 12, 2010 April 16, 2010 respectively, as well as the official documents published in the Official Gazette of Mon

tenegro – Municipal Ordinances. The relevant Kotor municipal authority ensured, within the legally prescribed deadline, the access to the required information by sending the accurate data on financing to political parties in 2009.

ELECTION OF THE MUNICIPAL MANAGER Results of the Election of the Municipal Manager (%) November 8, 2009

According to the Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers44, an amount ranging between 0.05% and 0.1% of the Operating Municipal Budget was to be provided for electoral campaign expenditures for municipal manager election. The 2009 Operating Budget of Kotor Municipality was €9,648,343.00, meaning that an amount ranging between €4,824.17 and €9,648.34 should have been provided for campaign expen

ditures. The Ordinance for Financing the Campaign for the Election of Municipal Manager of Kotor45 projected, in order to cover a part of expenses incurred by the election campaign, the funds amount

ing to €9,648.34, i.e. 0.10% of the total Budget funds decreased by the amount of Capital Budget.

Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers, Official Gazette of Montenegro, No. 08/09 Ordinance for Financing the Campaign for the Election of Municipal Manager of Kotor, Official Gazette of Montenegro – Municipal Ordinances, No. 029/09 4 as of September 08, 2009.

Kotor Municipality The same Ordinance anticipated that the said funds were to be distributed in such manner that 10.00% thereof were to be disbursed to all the candidates with the approved candidacy, 40.00% thereof were to be disbursed to the candidates with more than 10.00% of votes won, and 50.00% were to be disbursed to the candidates with the majority of the votes won. According to the Analyt

ical Records tabled to us by the relevant municipal authority of Kotor, Mrs. Marija Ćatović was paid €7,236.25, whereas Mr. Andrija Popović was paid €2,412.09 which matches the distribution method and the total amount of funds projected under the said Ordinance.

REGULAR FINANCING The projected 2009 Budget of Kotor Municipality was €15,831,443.00, whereas, according to the formula, the Operating Budget was €9,648,343.00. The amount projected for political parties, fac

tions and associations was €103,000.0046 total, i.e. 1.06% of the 2009 Operating Budget. Upon amendments and supplements, the Municipal 2009 Budget of Kotor was reduced to €6,597,587.00, whereas, according to the formula, the Operating Budget was €6,196,687.00. The amount projected to be transferred to political parties, factions and associations was €93,000.0047 total, i.e. 1.5% of the 2009 Operating Budget. The Annual Statement of Accounts of the 2009 Budget of Kotor Municipality stated that the projected amount for political parties, factions and associations was €93,000.00, whereas €93,352.2848, i.e. 100.37% of the projected funds transfer, was disbursed.

Table 9: Funds paid for regular financing of the parties in 200949 PARTY Democratic Party of Socialists Socialist People's Party of Montenegro Social Democratic Party of Montenegro Democratic Serb Party Liberal party Serb People’s Party People’s Party Movement for Changes Croatian Civic Initiative Ljubo Božović50 TOTAL

AMOUNT (IN €) 36,648.10 15,694.20 8,160.90 7,998.40 5,882.80 4,105.40 3,966.20 3,749.20 3,604.70 1,718.80 91,528.70

The analysis of the documents published in the Official Gazette has revealed that Kotor Municipality disbursed to political parties more funds than the prescribed legal maximum was, exceeding the said limit by 0.5% of the 2009 Operating Budget. The Analytical Records have shown that the paid amount, as stated under the Annual Statement of Accounts of the Budget of Kotor Municipality, ex

ceeded the one reached by summing up the amounts stated under the Analytical Records by €1,823.58. 46

49 50

Appropriation Ordinance for the 2009 Municipal Budget of Kotor, Official Gazette of Montenegro – Municipal Ordinances No. 004/09 3, January 23, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Kotor, Official Gazette of Montenegro – Municipal Ordinances No. 042/09 41 as of December 29, 2009 . The Annual Statement of Accounts of the 2009 Budget of Kotor Municipality, Official Gazette of Montenegro – Municipal Ordinances, No.026/10 22 as of September 28., 2010 Official data obtained on the basis of the Law on the Free Acess to Information. Councilor of Citizens` List

Financing to Political Parties from Budget and Private Funds in 2009

13.

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 Decisions Nos. 08

300 08 301 as of April 09, 2010, as well as the official documents published in the Official Gazette of Montenegro – 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 financing to political parties in 2009.

ELECTIONS OF COUNCILORS Results of the Election of Councilors December 6, 2009

The funding of the electoral campaign of the parties was regulated by the Law on Financing of Political Parties51. Accordingly, for the local elections campaigning expenditures of Mojkovac Municipality, the funds amounting to 0.15% of the Operating Budget of the Municipality which was projected as €2,294,385.18€52 for the year concerned should have been allocated, i.e. €3,441.6. To cover the ex

penses of electoral campaign for the elections of councilors, the 2009 Budget projected the amount of €3,500.0053, which was approximately 0.15% of the Operating Budget which is in line with the Law. Upon the analysis of the available documents, we have concluded that the disbursement of the said funds was completed according to 20.00% 80.00%54 formula. 51 52

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08 Appropriation Ordinance for the 2009 Municipal Budget of Mojkovac , Official Gazette of Montenegro – Municipal Ordinances, No. 015/09 05 as of April 30, 2009. Appropriation Ordinance for the 2009 Municipal Budget of Mojkovac , Official Gazette of Montenegro – Municipal Ordinances, No. 015/09 05 as of April 30, 2009. More details on the method of funds distribution will be given under Chapter 25 , Analysis of Legislative Framework.

Mojkovac Municipality Table 10: Funds paid for regular financing of the parties in 200955 PARTY Democratic Party of Socialists / Social Democratic Party Socialist People's Party "Lions of Mojkovac" Petar Pero Radović independent list TOTAL

20%

80%

TOTAL

137.00

1,161.36

1,298.36

137.00 137.00 137.00 548.00

838.64 0.00 0.00 2,000.00

975.64 137.00 137.00 2,548.00

Upon comparing the Analytical Records to the documents published in the Official Gazette, we have concluded that for financing electoral campaign for the elections of councilors, political parties were disbursed €2,548.00, i.e. €952.00 less than the amount projected under the Appropriation Ordinance for the 2009 Municipal Budget of Mojkovac for the purpose.

REGULAR FINANCING The projected 2009 Budget of the Municipality of Mojkovac amounted to €4,159,385.18, whereas, according to the formula, the Operating Budget amounted to €2,294,385.18. The amount projected to be transferred to political parties, factions and associations was €20,000.0056, i.e. 0,87% of the 2009 Operating Budget. Besides, the Budget projected the funds to cover expenses for the offices for councilor clubs, amounting to €12,000.00. Upon amendments and supplements, the 2009 Budget of Mojkovac Municipality was reduced to €2,721,169.18, whereas, according to the formula, the Operating Budget amounted to €1,875,169.1857. The amount projected to be transferred to political parties, factions and associations was €20,000.00 total, i.e. 1.06% of the 2009 Operating Budget. Besides, the Budget projected the funds to cover expenses for the offices for councilor clubs, amounting to €12,000.00. The Annual Statements of Accounts of the 2009 Budget of Mojkovac Municipality stated that the pro

jected amount to be transferred to political parties was €20,000.00, whereas €19,999.7658, i.e. 99.99% of the projected funds transfer, was disbursed.

Table 11: Funds paid for regular financing of the parties in 200959 PARTY Democratic Party of Socialists Socialist People's Party of Montenegro Serb People’s Party Social Democratic Party of Montenegro People’s Party Democratic Serb Party TOTAL

AMOUNT (IN €) 7,628.94 7,080.56 1,596.76 1,596.76 1,048.38 1,048.36 19,999.76

Financing to political parties in Mojkovac Municipality was completed within the legally prescribed deadline. 55 56

Official data obtained on the basis of the Law on the Free Acess to Information. Appropriation Ordinance for the 2009 Municipal Budget of Mojkovac , Official Gazette of Montenegro – Municipal Ordinances, No. 015/09 05 as of April 30, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Mojkovac, Official Gazette of Montenegro – Municipal Ordinances, No 004/10 56. as of January 26, 2010 Ordinance for the Annual Statement of Accounts of the 2009 Budget of Mojkovac Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 031/10 29 as of October 01, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Financing to Political Parties from Budget and Private Funds in 2009

14.

Nikšić Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance of Nikšić Municipality, based on the Decision No. 06 031/654 as of April 08, 2010, 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 financing to political parties in 2009.

ELECTIONS OF COUNCILORS Results of the Election of Councilors March 29, 2009

The funding of the electoral campaign of the parties was regulated by the Law on Financing of Po

litical Parties60. Accordingly, for the local elections campaigning expenditures for local elections in Nikšić, 0.15% should have been set aside out of the Operating Municipal Budget that was projected as €17,603,975.4061 for the year concerned, i.e. €26,405.96. The “funding of the electoral campaign of local elections” entry under the 2009 Budget projected €26,410.00, which was approximate to 0.15% of the Operating Budget and was in line with the Law. Upon analyzing the available documents, we have concluded that the distribution of the said funds was according to 20.00% 80.00%63 formula. 60 61

Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08 Appropriation Ordinance for the 2009 Municipal Budget of Nikšić, Official Gazette of Montenegro – Municipal Ordinances, No. 039/08 2007 as of December 29, 2008 More details on the method of funds distribution will be given under Chapter 25, Analysis of Legislative Framework.

Nikšić Municipality Table 12: Funds paid for regular financing of the parties in 200963 PARTY Democratic Party of Socialists / Social Democratic Party Socialist People’s Party New Serb Democracy Movement for Changes Liberal Party – Democratic Center Communists of Nikšić People’s Party / Democratic Serb Party Serbian National List64 Fatherland Serbian Party TOTAL

20%

80%

TOTAL

586.89

12,367.59

12,954.48

586.89 586.89 586.89 586.89 586.89 586.89 586.89 586.89 5,282.01

4,122.54 2,061.27 1,030.63 0.00 0.00 0.00 0.00 0.00 19,582.03

4,709.43 2,648.16 1,617.52 586.89 586.89 586.89 586.89 586.89 24,864.04

Seats in the Municipal Council of Nikšić were won by NS DSS and LP DC coalitions; however, ac

cording to the data obtained from the Secretariat for Economy and Finance of Nikšić Municipality65, the two lists did not receive the funds projected under the Budget as prescribed by the Law, which actually explains the discrepancy between the projected and the paid funds. We have been informed by the Secretariat that no fixed funds appropriation was made pursuant to Article 12 of the Law on Financing of Political Parties, since the Secretariat had not received any re

quests for such payments.

REGULAR FINANCING The 2009 Budget of Nikšić Municipality amounted €38,419,415.72, whereas, according to the for

mula, the Operating Budget was €17,603,975.40. Of that amount, funding for the regular activities of the parties holding seats in the Council amounted to €105,630.0066, i.e. 0.58% of the 2009 Oper

ating Budget. Upon amendments and supplements, the 2009 Budget of Nikšić municipality was reduced to €28,712,132.00, whereas, according to the formula, the Operating Budget was €23,408,670.00. The amount projected for the regular activities of political parties was projected as €85,300.0067, i.e. 0.36% of the 2009 Operating Budget. The Annual Statement of Accounts of the 2009 Budget of Nikšić Municipality stated that the pro

jected amount for regular activities of the parties holding seats in the Council was €85,300.00, whereas €22,171.1868, i.e. 25.99% of the projected funds transfer, was disbursed.

63 64 65 66

Official data obtained on the basis of the Law on the Free Acess to Information. Payment credited to the account of Party of Serb Radicals. Official data obtained on the basis of the Law on the Free Acess to Information. Appropriation Ordinance for the 2009 Municipal Budget of Nikšić, Official Gazette of Montenegro – Municipal Ordinances, No.039/08 239. as od December 29, 2008 Ordinance for Amendments and Supplements to the Ordinance for the 2009 Municipal Budget of Nikšić, Official Gazette of Montenegro – Municipal Ordinances, No. 036/09 26 as of November 19, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Nikšić Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 033/10 30 as of October 14, 2010.

Financing to Political Parties from Budget and Private Funds in 2009 Table 13: Funds paid for regular financing of the parties in 200969 PARTY Democratic Party of Socialists Socialist People’s Party Serb People’s Party Social Democratic Party Liberal party People’s Party Party of Serb Radicals Liberal Alliance New Serb Democracy Movement for Changes Democratic Serb Party TOTAL

AMOUNT (IN €) 6,236.83 3,534.71 1,820.26 1,298.08 895.39 622.55 587.10 587.10 94.40 55.10 35.45 15,766.97

Upon comparing the obtained documents and the data published in the Official Gazette, we have con

cluded that Nikšić Municipality disbursed, for financing regular activities of the parties holding seats in the Council, €69,533.03 less than projected under the Budget. Besides, the discrepancy between the amount stated under the Annual Statement of Accounts as paid and the amount that was reached by summing up the ones stated as paid under the Analytical Records has been noted.

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

Plav Municipality

15.

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. 0323 66 dated April 29, 2010, as well as the official documents published in the Official Gazette of Montene

gro – 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 2009.

REGULAR FINANCING The projected 2009 Budget of Plav Municipality was €2,963,907.00, whereas, according to the for

mula, the Operating Budget was projected as €2,010,907.00. The amount to be transferred to polit

ical parties was projected as €21,200.0070, i.e. 1.05% of the 2009 Operating Budget. Upon the Ordinance for the Annual Statement of Accounts of the 2009 Budget of Plav Municipality, the Budget was reduced to €2,889,177.72. The amount to be transferred to political parties was pro

jected as €11,200.00 total, of whereas €11,185.00 71, i.e. 99.86% of the projected funds transfer, was disbursed.

Table 14: Funds paid for regular financing of the parties in 200972 PARTY Democratic Party of Socialists Social Democratic Party of Montenegro Bosniak Party Socialist People’s Party Party for Gusinje Democratic Union of Albanians People’s Party TOTAL

AMOUNT (IN €) 4,085.00 2,000.00 1,700.00 1,300.00 1,000.00 700.00 400.00 11,185.00

We have not managed to find out, from the Appropriation Ordinance for the 2009 Municipal Budget of Plav, how the projected €21,000.00 for the transfer to political parties was reduced to €11,200.00 intended for the same purposes. The amount projected to be transferred to the political parties hold

ing seats in the Municipal Council, as stated under the Annual Statement of Accounts, matches the sum of the payments stated under the Analytical Records.

Appropriation Ordinance for the 2009 Municipal Budget of Plav, Official Gazette of Montenegro – Municipal Ordinances, No. 017/09 26 as of May 26, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Plav Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 015/10 49 as of April 22, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Financing to Political Parties from Budget and Private Funds in 2009

16.

Plužine Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economy of Plužine Municipality, based on the Decisions Nos. 04 518, 04 1526, 04 2205 and 04 620/1 dated March 20, 2009, September 07, 2009, December 21, 2009, April 13, 2010 respectively, the Letter No. 4 746 as of April 27, 2010, as well as the official documents pub

lished 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 the financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Plužine Municipality was €4,220,000.00, whereas, according to the formula, the Operating Budget was projected as €1,500,000.00. The amount to be transferred to political parties, factions and associations was projected as €15,000.0073, i.e. 1.00% of the 2009 Operating Budget. The Annual Statement of Accounts of the 2009 Budget of Plužine Municipality stated that the pro

jected amount to be transferred to political parties, factions and associations was projected as €21,631.32, whereas €21,631.3274, i.e. 100.00% of the projected transfer was made.

Table 15: Funds paid for regular financing of the parties in 200975 PARTY Socialist People’s Party Democratic Party of Socialists of Montenegro Serb list – Andrija Mandić Group of citizens „All for Piva“ – Radenko Deno Damjanović“ Democratic Serb Party People’s Party SKJ – RCG – Plužine – Mirko Vuković TOTAL

AMOUNT (IN €) 5,260.00 3,201.00 2,376.00 1,555.00 1,137.00 733.00 733.00 14,995.00

We have not managed to find out, from the Appropriation Ordinance for the 2009 Municipal Budget of Plužine, how the projected €15,000.000 to be transferred to political parties was increased to €21,631.32 as stated under the Ordinance for the Annual Statement of Accounts of the 2009 Budget of Plužine Municipality for the same purposes. The amount projected for the functions of the parties holding seats in the Municipal Council as stated under the Appropriation Ordinance for the 2009 Municipal Budget of Plužine matches the sum of the disbursed amounts as stated under the Analytical records. 73

Appropriation Ordinance for the 2009 Municipal Budget of Plužine, Official Gazette of Montenegro – Municipal Ordinances, No. 003/09 53 as of January 21, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Plužine Municipality, Official Gazette of Montenegro – Municipal Ordinances, 028/10 98 as of August 17, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Pljevlja Municipality

17.

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 Decision No. 06 401 45/1 as of April 13, 2010, 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 the accurate data on the financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Pljevlja Municipality was €22,300,000.00, whereas, according to the for

mula, the Operating Budget was projected as €8,680,000.00. The amount to be transferred to political parties, factions and associations was projected as €86.000,0076, i.e. 1.00% of the 2008 Operating Budget. Upon amendments and supplements, the 2009 Budget of Pljevlja Municipality was reduced to €12,280,000.00, the Operating Budget was reduced to €7,135,000.00, whereas the amount to be transferred to political parties, and associations was increased to €106,319.0077, i.e. 1.5% of the Op

erating Budget.

Table 16: Funds paid for regular financing of the parties in 200978 PARTY Movement for Changes Democratic Party of Socialists Serb People’s Party Social Democratic Party People’s Party Socialist People’s Party Democratic Serb Party Serbian Radical Party TOTAL

AMOUNT (IN €) 14,633.24 14,193.15 13,720.68 6,000.00 4,547.24 3,500.00 3,500.00 3,059.81 63,154.12

As it is obvious, Pljevlja Municipality disbursed the funds selectively to political parties during 2009. During the fiscal year concerned, political parties were withheld €43,164.88 as compared to the pro

jected amount, as follows: DPS €14,824.85; SNP €8,674.00; SDP €2,014.00; SNS €13,362.32; NS – €280.76; SRS €570.19; PZP €1,606.76; and DSS – €1,832.00.

Appropriation Ordinance for the 2009 Municipal Budget of Pljevlja, Official Gazette of Montenegro – Municipal Ordinances, No. 013/09 50 as of April 13, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Pljevlja, Of

ficial Gazette of Montenegro – Municipal Ordinances, No. 001/10 94 as of April 04, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Financing to Political Parties from Budget and Private Funds in 2009

18.

Podgorica, Administrative Capital

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance of the Podgorica Administrative Capital, based on the Decision No. Up:05 402/10

1493/1 as of April 14, 2010 and the Letter No. 05 402/10 1493/2 as of April 19, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances.

The relevant Podgorica Administrative Capital authority ensured CDT, within the legally pre

scribed deadline, the access to the required information by sending the accurate data on the fi

nancing to political parties in 2009.

REGULAR FINANCING The 2009 Budget of Podgorice Administrative Capital was projected as €101,245,590.00, whereas the Operating Budget was projected as €40,590,290.00. The amount projected to be transferred to political parties, factions and associations was €406,000.0079, i.e. 1.00% of the Operating Budget

which was in line with the Law. Upon amendments and supplements, the 2009 Budget of Podgorica Administrative Capital was re

duced to €85,615,970.00, whereas, according to the formula, the Operating Budget was projected as €35,011,500.00. The amount to be transferred to political parties, factions and associations was €350,000.0080, i.e. 1.00% of the 2009 Operating Budget. The Annual Statement of Accounts of the 2009 Budget of Podgorica Administrative Capital stated that the projected amount to be transferred to political parties, factions and associations was €350,000.00, whereas €271,459.38, i.e. 77.5% of the projected transfer, was disbursed.81

Appropriation Ordinance for the 2009 Budget of Podgorica Administrarive Capital, Official Gazette of Montenegro – Municipal Ordinances, No. 040/08 6 as of December 31, 2008 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Budget of Podgorica Adminis

trarive Capital, Official Gazette of Montenegro – Municipal Ordinances, No. 034/09 18 as of October 28, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Podgorica Administrarive Capital, Official Gazette of Montenegro - Municipal Ordinances, No. 027/10 27 as of August 04, 2010.

Podgorica, Administrative Capital Table 17: Funds paid for regular financing of the parties in 200982 PARTY Democratic Party of Socialists Social Democratic Party Serb People’s Party Socialist People’s Party Movement for Changes People’s Party Democratic Serb Party Serbian Radical Party People’s Socialist Party Ljubiša Nenezić – Independent Councilor Nebojša Batrićević Independent Councilor Tatjana Krkeljić, MA Independent Councilor Dušan Pejović Independent Councilor Dr Darko Radulović Independent Councilor Dr Predrag Jovović Independent Councilor Zdravko Tošić Independent Councilor Slobodan Radunović Independent Councilor Nada Radonjić Independent Councilor TOTAL

AMOUNT (IN €) 55,452.47 15,853.76 13,641.63 13,524.36 9,685.71 4,206.77 4,206.76 4,206.77 4,206.77 2,329.39 2,212.22 2,212.22 2,212.22 2,212.22 2,212.22 2.212,22 2.212,22 2.212,22 145,012.20

REGULAR FINANCING GOLUBOVCI AND TUZI The review of the funds intended for the parties holding seats in the Town District Councils of the Golubovci and Tuzi may be found in the Tables below.

Table 18: Funds paid for regular financing of the parties in the Town District Council of the Golubovci in 200983 PARTY Democratic Party of Socialists Socialist People’s Party Serb People’s Party Social Democratic Party Serbian Radical Party People’s Socialist Party Movement for Changes TOTAL

82 83

AMOUNT (IN €) 29,830.10 11,194.96 6,536.15 4,206.77 4,206.77 4,206.77 4,206.77 64,388.29

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

Financing to Political Parties from Budget and Private Funds in 2009 Table 19: Funds paid for regular financing of the parties in the Town District Council of the Tuzi in 200984 PARTY Democratic League in Montenegro Democratic Union of Albanians Democratic League in Montenegro Civic Initiative – Tuzi Social Democratic Party Social Democratic Party Bosniak Party TOTAL

AMOUNT (IN €) 11,194.96 11,194.96 13,524.36 13,524.36 4,206.77 4,206.77 4,206.77 62,058.95

Upon analyzing the available documents, we have concluded that the Budget of Podgorica Adminis

trative Capital disbursed to political parties €78,540.61 less than the Budget projection was. The amount for financing the activities of political parties, as stated under the Annual Statement of Ac

counts, matches the sum of the amounts stated under the Analytical Records as disbursed.

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

Rožaje Municipality

19.

Rožaje 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. 274 as of April 16, 2010 and the Letter No. 275 as of April 20, 2010, 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 the financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Rožaje Municipality was €5,515,000.00, whereas, according to the formula, the Operating Budget was €3,239,244.00. The amount to be transferred to political parties, factions and associations was projected as €32,072.0085, i.e. 0.99% of the 2009 Operating Budget. Upon amendments and supplements, the 2009 Municipal Budget of Rožaje was reduced to €4,567,180.00, whereas, according to the formula, the Operating Budget was €2,935,358.00. The amount to be transferred to political parties, factions and associations was 29,063.00€86, i.e. 0.99% of the 2009 Operating Budget. The Annual Statement of Accounts of the Budget of Rožaje Municipality stated the amount of €29,063.00 to be transferred to political parties, whereas €21.179,1987, i.e. 72.87% of the projected funds transfer was made.

Table 20: Funds paid for regular financing of the parties in 200988 PARTY Democratic Party os Socialists Social Democratic Party Bosniak Party Bosniak List Socialist People’s Party Liberal Party TOTAL

AMOUNT (IN €) 9,289.80 4,174.50 3,575.63 1,779.02 1,180.12 1,180.12 21,179.19

The analysis of the provided documents has led us to a conclusion that Rožaje Municipality disbursed €7,883.81 less than projected under the Budget. The payment stated under the Annual Statement of Accounts as that to be disbursed to political parties’ activities matches the sum of amounts stated under the Analytical Records as paid. 85

Proposal Appropriation Ordinance for the 2009 Municipal Budget of Rožaje, Official Gazette of Montenegro – Municipal Ordinances, No. 039/08 23 as of December 29, 2008. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Rožaje, Official Gazette of Montenegro – Municipal Ordinances, No. 038/09 19 as of December 07, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Rožaje Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 015/10 132 as of April 22, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Financing to Political Parties from Budget and Private Funds in 2009

20.

Šavnik Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Local Self Government of Šavnik Municipality, based on the Decision No. 02 1837 as of October 29, 2010, as well as the official documents published in the Official Gazette of Montenegro – Munic

ipal Ordinances. After the fixed deadline , the relevant municipal authority of Šavnik provided the information of regular financing to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Šavnik Municipality was €1,318,708.96, whereas, according to the formula, the Operating Budget was €728,708.96. The amount to be transferred to political parties was projected as €4,500.0089 total, i.e. 0.6% of the 2009 Operating Budget. Upon amendments and supplements, the 2009 Budget of Šavnik Municipality was reduced to €1,153,108.96, whereas, according to the formula, the Operating Budget was €916,629.83. The amount to be transferred to political parties and factions was projected as €4,500.0090, i.e. 0.5% of the 2009 Operating Budget. The Annual Statement of Accounts of the Budget of Šavnik Municipality stated the amount to be transferred to political parties, factions and associations as €4,500.00, whereas €2,671.9591, i.e. 59.38% of the projected funds transfer was maid.

Table 21: Funds paid for regular financing of the parties in 200992 PARTY Democratic Party of Socialists Socialist People’s Party People’s Party TOTAL

AMOUNT (IN €) 1,097.60 607.05 545.36 2,250.01

The analysis of the provided documents and information published in the Official Gazette of Mon

tenegro Municipal Ordinances has led us to a conclusion that political parties of Šavnik Municipality were disbursed €2,249.99 less than projected. Besides, there is an obvious discrepancy between the amount stated as disbursed under the Annual Statement of Accounts and the one which is reached by summing up the payments stated under the Analytical Records. 89

Appropriation Ordinance for the 2009 Municipal Budget of Šavnik, Official Gazette of Montenegro – Municipal Ordinances, No. 013/09 25. as of April 13, 2009. Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Šavnik, Official Gazette of Montenegro – Municipal Ordinances, No. 040/09 83 as of December 17, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Šavnik Municipality, Official Gazette of Montenegro Mu

nicipal Ordinances, No. 026/10 74 as of July 28, 2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Tivat Municipality

21.

Tivat Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Budget and Secretariat for Finance and Economic Development of Tivat Munici

pality, based on the Decision No. 0801 UP 20/1 as of April 16, 2010 and the Letter No. 0801 UP

20/2 as of April 16, 2010, 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 deadline, the access to the required information by sending the accurate data on the financing to political parties in 2009.

ELECTION OF THE MUNICIPAL MANAGER Results of the Election of the Municipal Manager (%) March 29, 2009

According to the Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers93, an amount ranging between 0.05% and 0.1% of the Operating Municipal Budget was to be provided for electoral campaign expenditures for municipal manager election. The 2009 Operating Budget of Tivat Municipality was €3,929,180.00, meaning that an amount ranging between €1,964.59 and 3,929.18€ should have been provided for the campaign ex

penditures.

Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers, Official Gazette of Montenegro, No. 08/09

Financing to Political Parties from Budget and Private Funds in 2009 The Decision No. 153 on Funds Disbursement, made by the Municipal Electoral Commission of Tivat and dated April 01, 2009, approved the amount of €523.89 to be paid to Mr. Đoko Vukmirović (SNP), a municipal manager candidate, who had won more than 10.00% of the valid votes. The Decision No. 153 on Funds Disbursement, made by the Municipal Electoral Commission of Tivat and dated April 01, 2009, approved the amount of €523.89 to be paid to Mr. Rato Brajković (NOVA), a munic

ipal manager candidate, who had won 10.00% of the valid votes. Finally, the Decision No. 154 on Funds Disbursement, made by the Municipal Electoral Commission of Tivat and dated April 01, 2009, approved the amount of €523.89 to be paid to Mr. Dragan Kankaraš (DPS SDP HGI), who won more than 10.00% of the valid votes. The same candidate was approved the disbursement of €1,964.59 as being the candidate who won the majority of votes. The sum of the stated amounts have shown the amount of €3,536.26, which is in line with the Law.

REGULAR FINANCING The projected 2009 Budget of Tivat Municipality was €7,904,300.00, whereas, according to the for

mula, the Operating Budget amounted to €3,929,180.00. The amount to be transferred to political par

ties, factions and associations was projected as €40,000.0094, i.e. 1.02% of the 2009 Operating Budget. Upon amendments and supplements, the Budget of Tivat Municipality was reduced to €6,816,311.00, whereas, according to the formula, the Operating Budget was €3,703,311.00. The amount to be transferred to political parties, factions and associations was projected as €30,000.0095, i.e. 0.8% of the 2009 Operating Budget. The Annual Statement of Accounts of the Budget of Tivat Municipality stated the amount to be trans

ferred to political parties, factions and associations as €30,000.00, whereas €23,579.20, i.e. 60% of the projected funds transfer was made.96

Table 22: Funds paid for regular financing of the parties in 200997 PARTY Democratic Party of Socialists Social Democratic Party Serb People’s Party Croatian Civic Initiative Socialist People’s Party Movement for Changes Vujović, Zoranić98 People’s Party Democratic Serb Party Serbian Radical Party Liberal Party TOTAL

AMOUNT (IN €) 7,899.25 2,869.75 2,869.75 2,241.07 1,612.38 1,102.90 1,049.38 983.68 983.68 983.68 983.68 23,579.20

The analysis of the obtained documents has led us to a conclusion that Tivat Municipality disbursed €6,420.80 less than projected under the Appropriation Ordinance for the Budget. The amount dis

bursed, as stated under the Annual Statement of Accounts, matches the one reached by summing up the payments stated under the Analytical Records. 94

97 98

Appropriation Ordinance for the 2009 Municipal Budget Tivat, Official Gazette of Montenegro - Municipal Ordinances, No. 002/09 17 as of January 19, 2009 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Tivat, Official Gazette of Montenegro – Municipal Ordinances, No. 002/10 52 as of January 14, 2009 Ordinance for the Annual Statement of Accounts of the 2009 Budget of Tivat Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 024/10 37 as of july 09, 2010. Official data obtained on the basis of the Law on the Free Acess to Information. Petar Vujović and Aldijana Zoranić, former PzP councilors.

Ulcinj Municipality

22.

Ulcinj Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Budget, based on the Decision No. 04 1168/3 10 as of April 18, 2010, as well as the official documents published in the Official Gazette of Montenegro – Municipal Ordinances. The relevant Ulcinj municipal authority rejected the Request of CDT for the Free Access to the In

formation concerning the funds that they disbursed to political parties in 2009.

REGULAR FINANCING The projected 2009 Budget of Ulcinj Municipality was €16,220,800.00, whereas according to the formula, the Operating Budget was projected as €6,669,800.00. The amount to be transferred to po

litical parties, factions and associations was projected as €50,000.0099, i.e. 0.7% of the 2009 Oper

ating Budget. Upon amendments and supplements, the Budget of Ulcinj Municipality was reduced to €5,410,000.00, whereas, according to the formula, the Operating Budget was €4,701,500.00. The amount projected to be transferred to political parties, factions and associations was €15,000.00100, i.e. 0.3% of the 2009 Operating Budget – which is below the legally prescribed minimum. The Rationale of the foregoing Decision, by which the Request for the Free Access to the Information was rejected, stated that Ulcinj Municipality did not make any payment to poliical parties on the grounds of the regular financing of political parties from the Budget funds. Thus, financing to political parties’ activities from the Budget funds was not done according to the Law.

100

Appropriation Ordinance for the 2009 Municipal Budget Ulcinj, Official Gazette of Montenegro - Municipal Ordinances, No.01/09 132 as of January 15, 2009 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2009 Municipal Budget of Ulcinj, Official Gazette of Montenegro – Municipal Ordinances, No. 03/10 153as of January 21, 2010.

Financing to Political Parties from Budget and Private Funds in 2009

The scanned Decision made by the Secretariat for Finance and Budget of Ulcinj Municipality, dated April 18th 2010

Acting upon the Request, the authority found that the Municipal Treasury had not been contributed the 2009 funds projected for the parties having their respective councilors in the Municipal Council of Ulcinj.

Žabljak Municipality

23.

Žabljak Municipality

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy, Finance, General Administration and Public Services of Žabljak Municipality, based on the De

cision No. 40/10 03 530 as of April 08, 2010 and the Letter No. 40/10 03 531 as of April 14, 2010, 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 2009.

ELECTION OF THE MUNICIPAL MANAGER Results of the Election of the Municipal Manager (%) August, 16 2009

According to the Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers101, an amount ranging between 0.05% and 0.1% of the Operating Municipal Budget was to be provided for electoral campaign expenditures for municipal manager election. The 2009 Operating Budget of Žabljak Municipality was €1,279,740.00, meaning that an amount ranging between €639.87 and €1,279.74 should have been provided for the campaign ex

penditures of candidates. According to the Letter provided by Žabljak Municipality, the amount pro

jected for financing of electoral campaign expenditures for municipal manager election was approved by the Appropriation Ordinance for the Municipal Budget of Žabljak, prior to approving an ordinance for financing of electoral campaign expenditures for municipal manager election, to be €2,500.00102. 101

102

Law on Financing the Campaign for the Election of the President of Montenegro, Municipal Mayors and Managers, Official Gazette of Montenegro, No. 08/09 This amount is stated under the Appropriation Ordinance for the 2009 Municipal Budget Žabljak, Official Gazette of Mon

tenegro Municipal Ordinances, No. 014/09 41 as of August 24, 2009 , Item 418 1 3.

Financing to Political Parties from Budget and Private Funds in 2009 Pursuant to the Ordinance for Financing of Electoral Campaign Expenditures for Municipal Manager Election in Žabljak103, 10.00% of the allocated amount was calculated for 4 candidates that applied the lists of candidates. The disbursement of €62.50 was made to each of three candidates, namely Mr. Isailo Šljivančaninu, Mr. Dobrica Šljivančanin and Mr. Ratko Vuković, whereas the fourth candi

date, namely Mr. Danko Stijepović, did not want to open a bank account for the purpose as pre

scribed by the Law. 40.00% of the allocated funds, i.e. of €1,000.00 were distributed to Mr. Isailo Šljivančanin and Mr. Dobrica Šljivančanin, the candidates who won more than 10.00% of votes, whereas the remaining 50.00% of the allocated funds were disbursed to Mr. Isailo Šljivančanin, the candidate who won the election. According to the said distribution of funds, €1,812.50 and €562.50 were disbursed to Mr. Isailo Šljivančanin and Mr. Dobrica Šljivančanin respectively, which together with the two foregoing amounts of €62.50 each makes up €2,500.00 projected under the above

mentioned Ordinance for Financing of Electoral Campaign. The amount of €2,500.00 makes up 0.2% of the 2009 Operating Budget of Žabljak and is far beyond the legal maximum fund prescribed to be allocated as financing to the Municipal Manager Electoral Campaign.

REGULAR FINANCING The projected 2009 Budget of Žabljak Municipality was €2,945,440.00, whereas, according to the formula, the Operating Budget was €1,279,740.00. The amount to be transferred to political parties and councilor clubs was projected as €12,700.00104 total, i.e. 1.00% of the 2009 Operating Budget. The Annual Statement of Accounts of the Budget of Žabljak Municipality stated the amount to be transferred to political parties and councilor clubs as €12,700.00, whereas €9,525.00105, i.e. 75.00% of the projected transfer, was paid.

Table 23: Funds paid for regular financing of the parties in 2009106 PARTY Democratic Party of Socialists Socialist People’s Party People’s Party Democratic Serb Party Serb People’s Party People’s Serb Party Serbian Radical Party Social Democratic Party TOTAL

AMOUNT (IN €) 3,834.90 2,006.76 700.96 700.96 700.96 700.96 439.77 439.77 9,525.04

The analysis of the obtained documents has led us to a conclusion that Žabljak Municipality dis

bursed €3,174.96 less than the amount projected under the Budget. The amount disbursed, as stated under the Annual Statement of Accounts, matches the sum of payments to political parties stated under the Analytical Records.

103

104

105

106

The Ordinance for Financing to Electoral Campaign Expenditures for Municipal Manager Election in Žabljak, Official Gazette of Montenegro - Municipal Ordinances, No. 018/09 4 as of June 05, 2009. Appropriation Ordinance for the 2009 Municipal Budget Žabljak, Official Gazette of Montenegro - Municipal Ordinances, No. 014/09 42 as of April 24, 2009. Ordinance for the Annual Statement of Accounts of the 2009 Budget of Žabljak Municipality, Official Gazette of Montenegro Municipal Ordinances, No. 035/10 35 od 21.10.2010. Official data obtained on the basis of the Law on the Free Acess to Information.

Financing to Parties from the Private Funds

24.

Financing to Parties from the Private Funds INTRODUCTION

For the purposes of the present research, CDT decided to analyze also political parties financing from private sources. Such analysis was feasible only based on the financial statements submitted by the parties. We consider that preconditions for such an action were met already in August 2008 upon entering into force of the Law on Financing of Political Parties that prescribed both an obligation of political parties to submit their respective financial statements and an obligation of competent authorities to audit and publish such statements. Upon analyzing the 2009 enforcement of Law on Financing of Political Parties, we have identified several key issues relating to the poor enforcement of the said Law – particularly in the areas of transparency and audit.

Issue No. 1: During 2009, political parties did not submit their respective financial statements as prescribed under the Law Pursuant to the Law on Financing of Political Parties, the applicants of the lists of candidates shall be under an obligation to submit to the competent electoral commission, within a prescribed deadline: • statements on the Budget funds expended for electoral campaigns, as well as the complete sup

porting documents and the appertaining audit report (Article 21 of the Law on Financing Political Parties); • statement on the origin, amount and structure of any funds raised and expended from private sources for electoral campaigns and any documents appertaining to such statement, as well as the certified auditor’s report if the total amount of the funds raised and expended from private sources for electoral campaign is higher than €50,000.00 (Article 22 of the Law on Financing of Political Parties). Pursuant to the same Law, the parties holding seats in municipal councils shall be under an obliga

tion to submit to the competent electoral commission, within prescribed deadlines: • complete statements on the origin, amount and structure of any funds raised and expended for electoral campaigns, in electronic format (Article 23 of the Law on Financing Political Parties); • annual statements on the assets, stated by type, amount and origin (Article 24 of the Law on Fi

nancing Political Parties). Finally, pursuant to Article 28 of the Law on Financing of Political Parties, political parties shall be under an obligation to submit to the State Electoral Commission their respective audit reports on the annual statement of accounts.

Financing to Political Parties from Budget and Private Funds in 2009 CDT was informed by the Ministry of Finance that they had done 27 audits of the statements of the 2009 electoral campaign expenditures total, as follows: • the audits of 12 statements of electoral campaign expenditures of lists of candidates contesting in the parliamentary elections; • the audits of 10 statements of electoral campaign expenditures of the elections of councilors to Municipal Councils of Nikšić, Budva and Mojkovac; and • the audits of 5 statements of electoral campaign expenditures of the elections of Municipal May

ors and Managers of Tivat, Herceg Novi, Žabljak and Kotor. Upon the communications with the State Electoral Commission and the analysis of the information posted on their Web Site, CDT has found that certain parties did not follow their legally prescribed obligations and that a portion of the mandatory statements were not submitted to the State Electoral Commission. On December 15, 2010, i.e. at the time of the finalization of the present text, neither 19 statements of the 2009 electoral campaign expenditures, nor 14 reports on the audits of such statements that had been completed by the Ministry of Finance and forwarded to the applicants of the lists of can

didates were published on the Web Site of the State Electoral Commission. The statements of the origin, amount and structure of the funds raised and expended for elec

toral campaigns of the following lists of candidates and of independent candidates were not pub

lished on the Web Site of the State Electoral Commission: 2009 Parliamentary Elections 1. Coalition of Populists 2. Party of Democratic Prosperity 3. Montenegrin Communists 4. „Bosniaks and Muslims together, as the one“ 2009 Election of Councilors to the Municipal Council of Nikšić 5. Coalition LP and DC – „For a Different Nikšić“ 6. Coalition of Populists 7. Communists of Nikšić 8. Serb National List 2009 Election of Councilors to the Municipal Council of Budva 9. SNP NS – NSD 10. Coalition LP i DC – „For a Different Budva“ 2009 Election of Councilors to the Municipal Council of Mojkovac 11. Nezavisna lista 12. „Lions of Mojkovac” 2009 Election of the Municipal Manager of Herceg Novi 13. Dejan Mandić – SNP 14. Jovica Tripković – Independent Candidate 2009 Election of the Municipal Manager of Žabljak 15. Dobrica Šljivančanin – SNP 16. Danko Stijepović – Independent Candidate 17. Ratko Vuković – Independent Candidate.

Financing to Parties from the Private Funds Besides, reports on the audits of the statements of the 2009 election campaign expenditures of the following lists of candidates, and of independent candidates cannot be found on the Web Site of the State Electoral Commission: 2009 Parliamentary Elections 1. Movement for Changes 2. Coalition of Populists 3. Party of Democratic Prosperity 2009 Election of Councilors to the Municipal Council of Nikšić 4. Coalition LP and DC „For a Different Nikšić“ 2009 Election of Councilors to the Municipal Council of Budva 5. Coalition „European Budva“ DPS SDP 6. Movement for Changes 2009 Election of Councilors to the Municipal Council of Mojkovac 7. Coalition DPS SDP „For a European Mojkovac“ 8. Socialist People’s Party 2009 Election of the Municipal Manager of Tivat 9. Miodrag Kankaraš (DPS SDP HGI) 2009 Election of the Municipal Manager of Herceg Novi 10. Zoran Bošnjak (DPS) 2009 Election of the Municipal Manager of Žabljak 11. Isailo Šljivančanin (DPS) 12. Dobrica Šljivančanin (SNP) 2009 Election of the Municipal Manager of Kotor 13. Marija Ćatović (DPS). The Web Site of the State Electoral Commission published the Annual Statements of Accounts of DPS, SDP, HGI and NOVA. Only the Annual Statement of Accounts of DPS is accompanied by the Re

port on the Audit of the Annual Statements of Accounts. Although some data of the assets are in

cluded in the Annual Statements of Accounts, separate Annual Statements of Assets were submitted by SNP and BS, in different formats. Finally, even the parties that submitted their respective statements did not follow the deadlines pre

scribed therefore.

Financing to Political Parties from Budget and Private Funds in 2009

ISSUE No. 2: Competent Ministry did not prescribe appropriate statement No separate form has been prescribed for annual statements of accounts and tax returns to be pre

sented by political parties. The Tax Administration informed officially CDT that the form prescribed for NGOs and the tax return form prescribed for legal persons could be used for the purpose. CDT believes that the form used by NGOs is not appropriate for political parties’ annual statements of accounts. The form does not obey the provisions of the Law on Financing of Political Parties; it was not designed to reflect specific rules that must be followed by political parties; it does not ensure that readers have an insight in whether a party abides by the Law in relation to the fund sources, amounts of funding and amounts of expenditures permitted respectively. The Law on Financing of Political Parties prescribes that parliamentary parties shall submit to the State Electoral Commission, for the examination purposes and by March 31st of a year for the pre

vious year, their respective Annual Statements of Assets stating the type, amount and origin of the assets. There is no specific form prescribed for such statement, whereas the relevant Article of the Law makes impossible to establish precisely the contents of such statement. Two parties submitted the 2009 Annual Statements of Assets, i.e. SNP and BS. SNP submitted it in the form of the Annual Statement of Investing in Fixed Assets, whereas BS submitted it in a free choice format that refers only to categories of the party’s tangibles. The forms for the statements of origin, amount and structure of the funds raised and expended for electoral campaigns were prescribed by the Ministry of Finance according to the Law, and they sat

isfy the basic transparency requirements. However, parties often do not complete appropriately cer

tain sections of the said forms. Consequently, anyone without an authority to audit them fully finds some segments of the statements as useless and without any information. The majority of statements include segments fully opaque or relating to the expenses incurred by advertising and announcing, meaning that it is impossible to find out whether advertisers gave the space at prices more favorable than the commercial ones were – which is the information of special importance to the evaluation of the equality of contestants in an election and is treated in many systems as intangible contribution. CDT believes that, after more than two years as of entering into force of the said Law, it is necessary to design separate forms to be used by political parties for their statements, such forms meeting the transparency standards.

ISSUE No. 3: The State Electoral Commission does not publish the statements in line with the Law Pursuant to Article 24 of the Law on Financing of Political Parties, the State Electoral Commission shall be under an obligation to post on their Web Site and to publish in the Official Gazette of Montenegro, within 10 days as of the receipt, all the statements required to be submitted by political parties. The State Electoral Commission posted certain number of statements on their Web Site, but did not publish them in the Official Gazette of Montenegro. As of enacting of the Law, not a single statement was published in the Official Gazette of Montenegro. During the communications with the SEC, CDT was informed that they did not have enough money projected under the Budget for publishing the statements concerned in the Official Gazette of Montenegro.

Financing to Parties from the Private Funds In addition to the foregoing obligation, Article 26 of the Law prescribed that the State Electoral Com

mission shall be under an obligation to post on their Web Site also the names of natural and legal persons that donated funds to the applicants of the lists of candidates – which was not done as well. Regardless the forms for the statements of origin, amount and structure of the funds raised and ex

pended for electoral campaigns prescribed donors’ names to be listed by political parties, they often refer to bank statements instead to list precisely the particulars of donors in their respective state

ments. In such manner, the public stakeholders are frequently withheld the information of who and in which amount contributed funds to parties’ campaigns. Exactly due to that reason, the State Elec

toral Commission role is with an emphasized importance in detecting identities of donors even when parties are not willing to do so.

ISSUE No. 4: Nobody is punished for the contempt of the Law The Law on Financing of Political Parties, under its Article 30, prescribes fees of from one hundred to two hundred times the minimum wage in Montenegro to be imposed to the parties that have vi

olated the Law by not submitting the statements to the State Electoral Commission. The Law has been violated several times, but nobody has been sanctioned so far. On April 07, 2010, the Ministry of Finance tabled, to the competent territorial misdemeanor author

ity, the reports on the said violations against the political parties that had not submitted to the State Electoral Commission the statements of electoral campaign expenditures in due time. The reports of violations were tabled against Bosniak Democratic Party of Montenegro, Party of Serbian Radicals, People’s Party, Party of Serb Populists, Democratic Center, Democratic Association of Muslims and Bosniaks in Montenegro, Liberal Party of Montenegro and Democratic Serb Party. The Ministry of Finance tabled the foregoing reports one year after holding the elections. We have not been provided by the Ministry with the official information of the decisions made in the misde

meanor procedures. Nevertheless, we have learned from the GRECO107 Report that four out of seven misdemeanor procedures were closed (one of them was adjourned, three were closed upon warn

ings and imposition of legal costs), whereas three more have been pending their rulings. The fees prescribed under the Law have not been imposed so far. Besides, it is not known to us that a procedure has been initiated against those parties which did not submit their respective statements relevant to local elections of 2009, as well as their respective annual statements of assets and the reports on the audits of their respective annual statements of accounts. The Ministry of Finance completed 27 audits of the statements of the 2009 electoral campaign ex

penditures. The Ministry of Finance has informed the public that they found significant irregularities during the audit work. Nevertheless, the examination of the Audit Reports has led us to a conclusion that some of the identified shortages should have been subjected to misdemeanor procedures as well. The foregoing audit has revealed that, in majority of cases, parties did not open separate bank ac

counts for raising funds and paying the expenses of electoral campaigning – which contravenes Ar

ticle 17 of the Law on Financing of Political Parties and for which there is a prescribed fee of from one hundred to two hundred times the minimum wage in Montenegro. An additional problem is that the said audit has revealed there were some funds in such accounts in several cases, whereas 107

Third Evaluation Round, Evaluation Report on Montenegro, Transparency on Party Funding (Theme II), GRECO, 2010.

Financing to Political Parties from Budget and Private Funds in 2009 no basis of acquiring the funds stated as the opening balance and used for paying electoral campaign expenses was reported to the auditors. We are of the opinion that a misdemeanor procedure should be initiated against all the parties that violate in any way any provision of the Law on Financing of Political Parties. In such manner, political parties would have been warned not to make again a similar default in any future electoral cam

paigning. According to Article 33 of the Law, a fee of from one hundred to two hundred times the minimum wage in Montenegro shall be imposed to a municipal electoral commission for a violation of the ob

ligation to forward statements to the State Electoral Commission. Article 33 of the Law provides for also a fee to be imposed to the State Electoral Commission and to a responsible person in the State Electoral Commission if statements are not published in line with the Law. The State Electoral Com

mission violated the Law obviously by not publishing the statements in the Official Gazette of Mon

tenegro. We do not know whether a misdemeanor procedure has been initiated against any election administrator.

CONCLUSION In their most recent Report108, the European Commission emphasized that “legal framework on fi

nancing of political parties and electoral campaigns have important deficiencies”. As an important deficiency, the European Commission stated that: „Supervisory authorities lack the full legal powers and the capacity to ensure enforcement of the legislation on the control over the financing of political parties”. In addition, the GRECO Evaluation Report on Montenegro Transparency of Party Funding concluded: „….the weakest area undoubtedly being the largely inefficient control of political finances“. The State Electoral Commission is with undeveloped capacities and insufficiently defined compe

tencies relevant to the area of control of political parties funding. Shifting of responsibilities between the State Electoral Commission and the Ministry of Finance does not contribute to any solution to the problem. The Law was adopted more than two years ago and it seems that it was drawn up for a different country with the State Electoral Commission having an access to abundant financial and human resources. The process of the SEC professionalization and capacity building has not been started yet. How long will we wait for this Law enforcement? CDT believes that it is necessary to approach to drawing up amendments and supplements to the Law on Financing of Political Parties and to strengthen control mechanisms designed for this area. The Law should be adjusted to the actual situation in order to ensure the control and transparency in the area. Two years of poor enforcement are quite enough to realize that financing of political parities should be governed differently.

108

Analytical Report accompanying the Communication From The Commission To The European Parliament And The Council, Commission Opinion on Montenegro's application for membership of the European Union

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, 49/10109) 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 of Montenegro, 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 neither 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.“ 109

On August 4, 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 fi

nancing of electoral campaigns. Thus, according to the new provision:

Budget funds for financing regular activities of parliamentary parties 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.

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 provide that 0.25% of the Operating Budget shall be ensured for electoral campaign financing. . The findings of the present Publication do not refer to the amended provisions, since the amendments were made in 2010.

Financing to Political Parties from Budget and Private Funds in 2009 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 budgets 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 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 Operating 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 confirmation. The funds amounting to 80.00% shall be allocated to the applicants of the lists of candidates proportionate 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 statements of the funds raised and expended for election campaign and the reports by the Ministry’s auditors on their audits completed. 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.

Analysis of Legislative Framework 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 proportionally 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.

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.

Financing to Political Parties from Budget and Private Funds in 2009 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.â&#x20AC;&#x153;

The image on the cover, used in the promotional campaign of the publication, was obtained from www.gettyimages.com