Montenegro must establish a Paying Agency for Agriculture, Rural Development and Water Management before joining the European Union (EU), otherwise the country and 16.000 farmers will lose access to money from there funds.
All payments and controls in the agricultural sector would be carried out through the Agency, it would publish public calls for support measures in the Official Gazette, and its headquarters would be in Podgorica.
The agency would also take over all employees of the Payments Directorate of the Ministry of Agriculture, Forestry and Water Management, of which there were 86 at the end of last year, as well as the responsibilities of that service.
These are just some of the novelties introduced by the Draft Law on the Establishment of the Agency, which the Ministry has put up for discussion until May 17th.
The law's impact assessment (RIA) states that the establishment of the Agency is crucial, because without it and regardless of progress in the negotiation Chapter 11 - Agriculture and Rural Development, Montenegro will not be able to access money from any EU agricultural fund, namely the European Agricultural Guarantee Fund, rural development funds and maritime, fisheries and aquaculture funds...
“There are around 16.000 beneficiaries of financial support under agricultural policy measures in Montenegro, and this number is not expected to change significantly after accession to the EU, although the primary source of funding will be transferred from the national budget to the EU budget. The establishment of the Agency is a prerequisite for access to funds from both agricultural funds when Montenegro becomes a full member of the EU. Unlike other EU policies that allow access to structural funds, the Common Agricultural Policy (CAP) is highly regulated and institutionally prescribed. Moreover, an accredited Agency is required to implement payments. The Agency will take over the staff of the Directorate, as well as its responsibilities, in particular the completion of the implementation of the IPARD IIIl programme during the first few years after Montenegro's accession to the EU. The internal organisation of the Ministry will also be regulated, as the Directorate will no longer be needed,” the document states.
After its establishment, the agency would also operate from regional offices (House of Agriculture), one of which has already been built in Bijelo Polje, and others are planned in Berane, Pljevlja, Nikšić, Bar and Podgorica. Each of them costs around 1,5 million euros, and would decentralize work and make it easier for farmers to access information and money.
There will be more jobs
The establishment of the Agency will not require special costs as it will be generated within the Ministry, but it is emphasized that money will be needed in the coming years to upgrade control systems, registers and monitoring systems, with a gradual increase in the number of employees. It is also stated that EU investments in agricultural holdings will be greater than what has been possible so far through IPARD III.
The agency, upon adoption of the law, would be formed by the beginning of next year, and control over it would be exercised by the Ministry in accordance with the Law on State Administration and the provisions of the new law.
"In addition to the rights, obligations and other provisions arising from regulations and collective agreements governing the employment and legal status of civil servants, employees of the Agency also receive special benefits in the event of fulfilling regular work obligations, which relate to the implementation of accredited measures for the allocation or payment of support funds. The Agencies are part of the Common Agricultural Policy (CAP), which implement the EU budget and are among the institutions that are most strictly monitored. In addition to the supervision of the Ministry and the Internal Audit Service, the State Audit Institution (DRI), the Audit Authority, the European Commission's audit, and the European Court of Auditors (ECA) are involved. The Agency, as a public administration body, will also be subject to supervision by national inspection bodies," the document states.
The money for the establishment, as it says, will be planned in the budget for next year, while this year's budget has been credited with around 12 million euros, and it is expected that after EU accession, up to 20 million euros will be provided annually for the Agency's measures. The RIA also says that a working group has been formed in the Ministry to draft the law and that international expert assistance has been engaged through the "MIDAS" project, financed by the World Bank.
The adoption of this law is also part of Montenegro's alignment with the Common Agricultural Policy (CAP), while upon accession the country will be required to adopt its own CAP strategic plan and define agricultural objectives and steps to achieve them. It is stated that the Agency will initially implement the measures of the national agricultural policy and the IPARD III program, currently managed by the Payments Directorate.
Satellite control
According to the Draft Law, the Acting Director of the Agency will be appointed by the Government within one month of its entry into force. His mandate would last for up to six months or until the appointment of a full-time director, and he will also be able to form expert committees that would provide the necessary opinions on certain issues in agricultural policy.
According to the Draft, transparency will be ensured by the Agency publishing a list of beneficiaries for the previous year who were entitled to support from European agricultural funds, programs and measures paid from the state treasury. Some exceptions are also prescribed in which farmers cannot produce on their farms and return the allocated money, such as natural disasters, extreme meteorological phenomena, destruction of facilities, machinery and infrastructure, disease outbreaks...
"The Agency, in accordance with the regulations, shall establish and maintain a land surveillance system which, for the purpose of establishing the factual situation, shall enable regular and systematic observation, monitoring and assessment of activities and practices on agricultural land in Montenegro, using data from the 'Sentinel' satellite within the 'Copernicus' programme, other equivalent satellite data, data obtained through remote sensing, geographically tagged photographs and other appropriate evidence. It shall establish a software solution for rapid electronic communication which shall enable the exchange of information and documents between the Agency and the users," the Draft Law states.
Administrative penalties for farmers include a full or partial reduction in the amount of support, refunds, exclusion of beneficiaries, loss of payment rights, while in the event of an error during the year, the Agency can make a new decision, repeal the old one within five years...
Joković: There is a shortage of both workers and space
Minister of Agriculture Vladimir Joković said that the Payments Directorate already lacks the required number of employees and work space.
He announced this in the Parliament in November last year, answering questions from MPs.
He pointed out that all employees at the Directorate work in 800 square meters of space and that there are about ten of them per office, where they receive clients.
"We have a serious problem with the lack of capacity when it comes to employment in the Ministry. We have 86 people in the Directorate, and when the European Commission assessed the workload, it said that there should be at least 149 permanent employees working there and that they should have 2.000 square meters of space," said Joković.
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