1. EXTRACTS FROM THE EUROPEAN COMMISSION REPORTS ON MACEDONIA (2005 – 2007) AND GRECO EVALUATION REPORT (2005) AND COMPLIANCE REPORT (2007) ON MACEDONIA (PDF) download >>>
2. ANALYSIS ON MACEDONIA BASED ON THE EXTRACTS FROM THE EUROPEAN COMMISSION REPORTS (2005 – 2007) AND GRECO EVALUATION AND COMPLIANCE REPORTS (2005, 2007)
General Statements
In their reports in 2005, European Commission and GRECO stress that the level of corruption in Macedonia remains high and represents a serious and widespread problem which affects many aspects of social, political and economic life.
Following year, the Commission repeats that corruption remains widespread and that it represents one of the main and most serious problems, which affects many aspects of social and economic life.
In 2007, the Commission repeats, for the third time, that corruption is widespread and represents a very serious problem.
Capacities to Fight Corruption and Anticorruption Policies
In its Analytical Report (2005), European Commission notes as a positive achievement Macedonia’s adoption, in previous years, a Law on Prevention of Corruption, under which a State Commission for the Prevention of Corruption, which is according to GRECO’s opinion one of the significant measures, was established as a consultative and preventive body. In addition, it is highlighted that the State Commission adopted a National Programme for Prevention and Repression of Corruption and an annex on measures to prevent corruption at local level. However, European Commission underlines that beyond formal implementation of the programme, further efforts are needed to ensure effective enforcement of the provisions adopted. In conclusion, it is pointed out that capacity to investigate and prosecute corruption must be increased, overall coordination and cooperation between law enforcement agencies needs to be strengthened as well as cooperation between State Commission for the Prevention of Corruption and the State bodies and, finally, the independence of the officials in charge of investigations and of the judges needs to be enhanced.
Following year, the Commission states that a set of additional measures aimed at enhancing the fight against corruption are presented, however, emphasizing that the results of legal and institutional measures remain far from satisfactory and have a limited impact. Moreover, it is pointed out that little progress was achieved in identifying the extent of corruption, which hampered preventive and detection measures and that prosecutions of corruption cases remain at a low level and the implementation of the existing anti-corruption regulations requires additional capacity. Finally, the Commission points out that the cooperation and coordination in the fight against corruption progressed with setting up of an interministerial body, nevertheless it is underlined that overlapping competences and the insufficient exchange of information between the law enforcement bodies involved in combating corruption need to be fully addressed.
In 2007, the Commission emphasizes that progress is made in anti-corruption policy and measures and that the legal and institutional framework was strengthened. Namely, the renewed State Anti-Corruption Commission began its mandate, new programme for prevention and suppression of corruption is drafted and an Action Plan is adopted. However, it is pointed out that the Action Plan lacks a clear budget allocation and the high number of legislative acts created a fragmented legal system which makes implementation and monitoring more difficult and that the lack of human and technical resources continues to impede the work of the state commission. The Commission concludes that the capacity to investigate corruption is reinforced and coordination among law enforcement agencies improved as well as cooperation at central level between law enforcement agencies and the judiciary, underlining that the anti-corruption legal framework needs to be reviewed and strengthened.
International Conventions and Obligations
European Commission and GRECO, in their reports in 2005, greet Macedonia’s ratification of the Council of Europe Criminal and Civil Law Conventions on Corruption and the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime. Moreover, the Commission also welcomes signing and ratification of the Additional Protocol to the Criminal Law Convention on Corruption, underlining that the UN Convention against Corruption needs to be ratified and that the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions has to be signed.
Following year, the Commission points out, again, that the UN Convention against corruption still has to be ratified and the OECD Convention on combating bribery of foreign public officials in international business transactions has to be signed.
In 2007, European Commission welcomes ratification of the United Nations Convention against Corruption, pointing out, again, that the OECD Convention on combating bribery of foreign public officials has to be signed.
Judiciary
In its Progress Report (2005), European Commission states that there are some obstacles to the full independence of judges from political influence in practice. According to the Commission’s opinion, this is due to the role of the Judicial Council and of Parliament in the election presidents of courts and judges and due to the role of Parliament in disciplinary proceedings. In conclusion, it is pointed out that the fight against corruption would benefit from progress on strengthening the independence, impartiality, integrity and efficiency of the judiciary, which could be achieved by a firm commitment to eliminating external influences over the judiciary and to devoting adequate financial resources and training.
In 2006, the Commission perceives as a positive development change of the rules for the appointment of judges by the adoption of the Laws on the Academy for Training of Judges and Prosecutors, on Courts and on the Judicial Council, underlining that Parliament no longer plays a role in the selection of judges – which is step needed to prevent corruption. Moreover, Commission notes that the legal framework for strengthening the independence and the efficiency of the judiciary is largely in place, however emphasizing that the reform is at an early stage and remains a major challenge. In conclusion, it is pointed out that there are several investigations in procedure against judges and prosecutors for corruption.
Following year, the Commission points out that implementation of the new rules for nominating judges and presidents of the courts, which is a key condition for ensuring the independence of the judiciary, has begun, however it underlines that the judiciary continues to suffer from lack of independence and low efficiency. In conclusion, European Commission greets commitment of the Judicial Council in combating corruption and ensuring impartiality, which resulted in dismissal of a judge and in instigation procedures against a number of others.
Police
In 2005, the Commission states that the Ministry of Interior’s professional standards unit, which investigates, among other things, corruption cases in the police, produced its first results. Namely, some police officers were dismissed, disciplinary measures were imposed and some criminal charges were brought against police officers.
Following year, European Commission notes that positive developments took place in the Ministry of Interior’s sector for internal control and professional standards, which contributed towards strengthening its ability to investigate charges of corruption and resulted in sentencing of a police officer for receiving bribe. In conclusion, it is pointed out that further capacity to investigate and prosecute corruption is needed.
European Commission, in its Progress Report (2007), highlights that an increased number of police officers faced disciplinary measures for bribery and abuse of office, which resulted, in some cases, in dismissals and prison sentences.
Public Administration and Business Environment
In 2005, European Commission and GRECO state that corruption appears to be a serious problem in public administration and GRECO describes the public administration as non-transparent, politicised and with a large degree of in-built nepotism. It is pointed out that some of the reasons of corruption can be attributed to non-transparent administrative procedures for various dealings of citizens and enterprises with the State administration, the extensive and non-transparent system of issuing licences and permits for various activities and still opaque management of State assets. In conclusion, the Commission emphasizes that the decentralisation of public finance competences to lower levels of administration will be a considerable challenge in terms of fighting corruption, where GRECO recommends to incorporate anti-corruption measures concerning local authorities as a specific subject of the State Programme against Corruption and to implement them in practice.
Following year, the Commission notes that some steps are undertaken to increase transparency in public administration by enactment of a new Law on Free Access to Public Information, however pointing out that the lack of good governance, of transparency and accountability in public administration facilitate corruption. In conclusion, the Commission underlines that further progress in fiscal decentralisation will require the development of financial and internal control mechanisms to allow appropriate planning and to minimise the risk of fraud and corruption.
Next year, GRECO welcomes adoption of an Annex to the State Programme for the Prevention and Suppression of corruption in the field of local authorities, while European Commission, in its Progress Report (2007), stresses that there is limited results in creating transparent and depoliticised public administration, underlining that the anti-corruption legal framework is not fully implemented.
Public Procurement
In 2005, the Commission states that, although, the current situation provides a starting point to develop an effective public procurement system, there is need for considerable and sustained efforts to align its legislation with the acquis and to effectively implement and enforce it in order to detect fraud and corruption better.
Following year, European Commission highlights that significant progress is achieved in alignment with the acquis in the area of public procurement and in strengthening implementation capacity, underlining that the basis for developing an effective public procurement system is established. In addition, it is pointed out that effective remedies still have to be put in place and that considerable efforts are still needed to effectively implement and enforce the legislation.
European Commission, in its Progress Report (2007), points out that the Public Procurement Bureau, in performing its role in detecting corrupt activities, regularly submits reports to the state anti-corruption commission and the state audit office, furthermore emphasizing that alignment of legislation with the acquis is moving forward.
Money Laundering
In its Report (2005), European Commission states that the country made progress on the establishment of anti-money laundering defences, however underlining that legislation needs further alignment with international standards. It is pointed out that the effectiveness of anti-money laundering defences is seriously hampered by corruption and by the high level of cash transactions, and that there is no prosecutions, convictions, confiscations or seizures in the area of money laundering while the number of investigations remains very low. In conclusion, the Commission and GRECO state that awareness of the fight against money laundering among reporting institutions as well as feedback to reporting entities seem limited, where GRECO points out that the authorities should offer training for legal professions in respect of reporting money laundering including where corruption could be a predicate offence.
Following year, the Commission highlights, again, that further legislative alignment is necessary and further progress is needed in the implementation of the rules regarding anti-money laundering. It is stressed again that the enforcement capacity needs to be strengthened, in particular by raising awareness among reporting institutions and by further establishing a credible enforcement record on the part of the relevant institutions.
In 2007, the Commission points out that the Directorate for the prevention of money laundering established good cooperation with the reporting institutions, primarily the banks, and with other bodies involved in prevention of money laundering. In conclusion, it is pointed out that there is no adequate administrative capacity to implement the anti-money laundering legislation.
Conflict of Interests
In 2005, European Commission and GRECO point out that the Constitution and the Law on Prevention of Corruption provide the legal framework to prevent conflicts of interest of public officials, while the Commission underlines that under this Law a large number of officials and elected representatives are under an obligation to submit a declaration of assets to the State Commission when they are nominated or elected. However, it is stressed that this obligation is partly implemented and a few charges are brought for failure to submit the declaration of assets.
Following year, the Commission underlines that conflicts of interest remains to be regulated and monitored and that tangible progress in reducing the discretionary rights of ministers and other officials is not achieved. Moreover, the State Anti-Corruption Commission brought charges against those who did not submit assets declaration, however it is pointed out that sentences delivered to officials failing to fulfill this obligation are lenient and that a fully effective checking of the property declarations would require strengthening of the bodies involved.
European Commission welcomes, in its Progress Report (2007), adoption of a law on conflict of interest, underlining that there is limited follow-up to the review of discretionary powers of ministers and other officials in the administration. Moreover, it states that a number of misdemeanour procedures were brought against officials who failed to submit asset declarations. However, European Commission repeats that the commission’s capacity to publish them is limited, checking remains weak and sanctions lenient.
Free Access to Information
In 2005, European Commission and GRECO state that Law on Free Access to Information is under consideration in Parliament, emphasizing that its adoption would strengthened transparency of the administration and would be crucial in prevention and detection of corruption. In addition, GRECO highlights that the draft law provides for the establishment of an independent body as a complaints body in cases where information requests by citizens are rejected.
The Commission, in its Progress Report (2006), welcomes adoption of the Law on Free Access to Public Information and setting up of an independent commission, which will be responsible for overseeing its implementation. In conclusion, it is highlighted that by this law transparency in public decisions, public activities and in the management of state assets is improved.
Next year, European Commission notes that the Law on Access to Information is not fully implemented as many public bodies are not fully prepared or willing to facilitate access to information. It is pointed out that the administrative capacity of the Commission for the protection of the right to free access to public information remains weak, and that insufficient training and information are provided to the holders of the information and to the public. In conclusion, European Commission underlines that more effective implementation of the law on free access to public information, would narrow the opportunities for corruption.
Financing Political Parties
In 2005, European Commission emphasizes that the legislative provisions on the financing of political parties, in particular the Law on the funding of political parties, will have to be fully implemented, underlining that changes in the electoral code included the obligation for each party to account for its campaign expenses. Therefore, it is pointed out that the implementation of the abovementioned legislation will require tightening up control by the State Audit Office.
Next year, the Commission repeats that the implementation of the regulations on political parties’ finances and election campaign financing are serious challenges, including for the State Audit Office capacity to determine irregularities. It is underlined, again, that changes in the electoral code included the obligation for each party to account for its campaign expenses.
European Commission, in 2007, welcomes, enactment of amendments to the anti-corruption law to prohibit political parties from receiving and spending funds from anonymous sources. However, European Commission emphasizes that the State Anti-Corruption Commission and the State Audit Office found that campaign costs had exceeded the limits set by law, and that many unreported donations had been received, in particular in the form of under-priced media advertising, underlining that the electoral code does not penalise such donations.
Customs
In its Report (2005), European Commission notes that a Code of Ethics for the customs service has been available for many years, however it points out that there is no clear sign of the effectiveness of this anticorruption policy. Furthermore, it is stressed that considerable and sustained efforts are needed to align customs legislation and procedures with the acquis and to effectively implement and enforce it, and that major efforts are required to tackle the problem of corruption.
The Commission, in its Progress Report (2005) welcomes adoption the Arusha Declaration on corruption and issued a new Code of Ethics for customs officers, underlining that over the reporting period, a number customs officers were prosecuted for abuse of position. However, it is pointed out, again, that further efforts are necessary in this field to fight corruption.
In 2007, the Commission highlights that a strategy on integrity and combating corruption is adopted and implemented consistently, pointing out that considerably higher number of disciplinary procedures were initiated compared to previous year and some of these resulted in dismissal and in suspension of customs officers. In conclusion, it is underlined, for the third time, that efforts to combat corruption and misconduct need to be pursued.
Taxation
In 2005, the Commission perceives as a positive step setting up of a Sector for Internal Control and introducing of a free telephone line in order to tackle the serious problem of corruption within the tax administration. European Commission stresses that the fight against corruption and administrative capacity of the Public Revenue Office should be strengthened in order to ensure non-discriminatory and effective application of tax legislation.
Following year, the Commission stresses that there is progress in legislative alignment in the area of taxation, however underlining that efforts will be needed to further align legislation and ensure effective implementation of the legislation. In conclusion, it is highlighted that regarding ethics and anti-corruption measures, even though the anti-corruption hotline received high number of calls, the number of disciplinary measures against staff members was insignificant.
In 2007, European Commission underlies that over 50 internal corruption investigations for misconduct were initiated against staff members, and some of these resulted in disciplinary measures. However, the Commission emphasizes that further efforts to ensure effective implementation and enforcement of the legislation are necessary.
Competition and State aid
In 2005, European Commission states that progress is made by the adoption of appropriate and EU-compatible antitrust and State aid legislation, pointing out that it is important to visibly enforce the antitrust and State aid rules. Moreover, the Commission emphasizes that the country needs to promote competition by encouraging liberalisation, the improvement of public procurement practices, and an approach to privatisation designed to foster competition, while the Commission for Protection of Competition should be given efficient means directly to enforce the law and impose sanctions. In conclusion, it is underlined that the State Aid Commission’s ability to act independently should be ensured and that transparency should be promoted by establishing a comprehensive inventory and reporting all aid measures in force.
Following year, the Commission underlines that according to the new Law on Misdemeanours, a criminal procedure conducted for an infringement of competition rules leads to the suspension of the infringement procedure before the Commission for Protection of Competition, emphasizing that this leads to the non-application of competition rules and should be clearly avoided. In conclusion, it is pointed out that investigation procedures need to be strengthened, clear guidelines and interpretations of competition law developed, and transparency and accountability promoted, and that the state aid authority will have to concentrate on the building up of a credible enforcement record.
In 2007, European Commission states that progress can be reported in the area of antitrust, underlining that the Law on protection of competition was amended in a way that the Commission for Protection of Competition has the right to conduct misdemeanour procedures and impose fines. Moreover, it is emphasized that that enforcement in the antitrust still needs to be strengthened and should concentrate on the most serious infringements of competition. The Commission stresses that progress is made by amending state aid law, nevertheless it is pointed out that the Commission for Protection of Competition must make further efforts to put in place an effective system of ex-ante state aid control. by publishing several guidelines on implementing the competition law,