Agency for Prevention of Corruption

Cross-section of the transfer of funds from public sources for regular operation of political entities in 2017

Sept. 8, 2017

The Agency is in charge of controlling the financing of political entities in accordance with the Law on Financing of Political Entities and Election Campaigns. The Law envisages, among other things, the ways to obtain and secure funds from public sources to finance regular operation of political entities. The Ministry of Finance and local government authorities responsible for finances, transfer funds to political entities for their regular work on a monthly basis.

The total budgeted funds at state and local levels intended to finance the regular operation of political entities in 2017 amount to 6,226,395 euros, or 3,113,197 euros, from January 1 to June 30, 2017. This amount does not include funds allocated for the financing of employees in parliamentary/municipal clubs and the provision of business premises for the needs of political entities.

The total amount of funds disbursed to political entities in the first half of the year is € 3,199,160, out of which € 2,157,224  at the state level, and € 1.041.936 at local level.

In the previous period, the Agency recorded a high amount of municipal debt to local level political actors that dates from previous years. With the proactive approach of the Agency and the engagement of local governments, this debt was reduced by almost half from € 1,168,465 at the beginning of 2016, to € 500,839 at the end of last year. A positive trend continued in the first half of 2017, during which time municipalities reduced their debts by € 85,962 (17%) to the amount of 414,876.64 euros.

Along with respect of the obligation to settle liabilities, the Municipalities of Budva, Herceg Novi, Plav and Ulcinj settled their debts to political entities to a large scale. The Agency recommends to continue with debt settlement practices in the upcoming period, especially when it comes to the Municipalities of Pljevlja, Bijelo Polje and Cetinje, where the largest remaining amount of outstanding debt is recorded.The largest amount of debt was repaid by the Municipality of Budva - 186,240.99 euros, which settled all liabilities for the first 6 months and the entire debt from the previous year. The municipalities of Gusinje, Plav, Pljevlja and Ulcinj also settled all liabilities for the first 6 months and part of the debt from previous years.

The Ministry of Finance and 12 municipalities (Andrijevica, Bar, Danilovgrad, Kotor, Nikšić, Mojkovac, Petnjica, Podgorica, Plužine, Rožaje, Tivat, and Žabljak) regularly settle all obligations to political entities.