CDT: ASK to announce how and why parties donate money

The Center for Democratic Transition (CDT) called on the Agency for the Prevention of Corruption (ASK) to publish contracts and supporting documentation on the basis of which political parties awarded donations and assistance to third parties in the previous year and to state whether these donations were in accordance with the law.

CDT Deputy Executive Director Milena Gvozdenović said that data showing that political parties have donated hundreds of thousands to various organizations, clubs and individuals raises serious questions about the way parties spend money that predominantly comes from state and local budgets.

She reminded that the State Audit Agency, in the process of auditing the financial statements of parties, pointed out situations when parties do not present supporting documentation to justify donations and assistance paid to various individuals and legal entities.

Gvozdenović believes that, in addition, the issue of justification of decisions and the interest of political parties in allocating the money of all citizens to selected individuals, of their own choosing, is equally important.

"Part of the public is rightly asking whether this donation is the result of the parties' generosity and nobility or the withdrawal of money from legal flows into gray funds, and the answer to this question should be provided by the competent institutions," said Gvozdenović.

According to her, funds for the regular work of political entities are not intended as a fund for arbitrary distribution of money, but as public financing of democracy.

Gvozdenović explained that the law stipulates that budget funds can be used to finance the regular work of political entities and election campaign costs.

"In other words, the purpose of these funds is for parties to be able to function, articulate and represent the interests of citizens and participate in the democratic process — not to take over social and other functions of the state and selectively distribute public money," Gvozdenović added.

She assessed that it is very problematic when the line between regular work, campaigning, and politically motivated "help" is blurred, because then public money easily becomes a means of strengthening party influence, outside the purpose for which it was allocated.

"Although it may seem generous at first glance, the role of parties is not to act as foundations, centers for social work or ministries for social policy, and especially not in a way that involves donating money to "their own", without clear criteria and procedures, which clearly concentrates both the political and financial power of parties," Gvozdenović pointed out.

She recalled that as part of the electoral legislation reform, political parties have increased the funds they receive from the state budget to an amount not recorded in modern European democracies.

"Back then we could hear arguments that the parties did not have enough funds for their smooth functioning, but now it is even clearer that there is enough money - enough that it can be donated," Gvozdenović assessed.

She said that the opportunity to improve the control of financing or sanctioning abuses through the law was missed – so the system that should oversee the implementation of the law remains intact.

Gvozdenović said that this is precisely why the European Commission called for additional amendments to the Law on Financing Political Entities and Election Campaigns, demanding that transparency and control of spending by parties be substantially increased.

"Such cases of party donations further confirm the appeals of international partners and the domestic public for further changes to electoral laws," Gvozdenović stated.

She believes that it is appropriate for political parties to not place any restrictions on how and how much money they can spend in the run-up to general local and parliamentary elections, under the slogan that "everything that is not explicitly prohibited is permitted."

"The public has the right to know by what criteria and in what individual amounts parties decide to dispose of money originating from the state budget. Therefore, the issue of these donations is not a secondary accounting issue, but an issue of a fair electoral process," the statement concludes.