The inconsistencies of the provisions of the regulatory framework referring to the control activity of the SFS, that create confusion and inadequate implementation of existing rules were highlighted in a study. It was developed by the Institute for Development and Social Initiatives (IDIS) “Viitorul” in the "Civil Society Support to the Parliament of the Republic of Moldova in Promoting Economic Reforms and Evaluating Independent Regulatory Agencies" project.
In the analysis have been indicated the most important regulatory differences, which, in this respect, may constitute major risks in the control process. The study comprises five compartments, which describe the current context and purpose of the study, analyze the risk factors generated by regulations in the field, the existence of integrity tools provided by the regulatory framework, and the way of implementing measures to ensure institutional integrity. The report continues with the analysis of operational risk factors, which may arise from the management of service information, management of financial means, public procurement, and the inadequate implementation of internal managerial control.
A separate compartment is dedicated to the analysis of the risks related to the process of performing state control, from the planning stage to the decision-making stage. Next follows an analysis of decisional transparency and of access to information at the SFS.
As a result of the analysis, there have been identified arrears in the implementation of the integrity measures as established in the normative framework. This analysis is also an investigation of the implemented integrity instruments, necessary in order to ensure the institutional integrity of the SFS.
With regard to public procurement, the authors of the report note the lack of transparency resulting from not publishing all the information and documents stipulated by the regulatory framework, from deficiencies and inconsistencies in published data; also noted is the non-compliance with legal provisions, which may favor the risks of corruption, conflicts of interests, but also the poor execution of contracts. The general conclusion is that there exists a high probability of corruption risks.
In the analysis it was found that the risks of corruption related to the management of the financial means with the State Fiscal Service are minor, with a low probability of occurrence. Regarding the risks related to the internal managerial control, they are moderate and with an average probability of occurrence. This finding is based on the noted deficiencies in the organization and functioning of the internal managerial control system.
The risks related to transparency in the decision-making process are moderate, but with a high probability of occurrence. The State Fiscal Service fails to ensure transparency and real public participation at all stages of the decision-making process. At the same time, the risks associated with the activity of providing access to information by the SFS are moderate and with a medium probability of occurrence. However, every year we notice court decisions finding violations, by the SFS, of the right of access to information.
The report discovered the lack of an appropriate record of the data on the number of controls performed, and on their results, as there have been identified major discrepancies in the public information presented in the annual activity reports of the State Fiscal Service - on one hand, and in the State Register – on the other hand. The analysis of statistical data related to state control carried out by the State Fiscal Service in the last three years highlights several issues, which may raise some questions or signal the presence of elements of corruption. The findings emphasize in many cases the insufficient training of inspectors, and also indicate the need for a thorough analysis, and for necessary measures to be taken by the management of the institution. In this regard, is mentioned the extremely small number of appeals filed against control resolutions and decisions, the annulment of the results of fiscal controls by the courts on the grounds of late filing of appeals, the incorrect drafting of control acts, and unjustified sanctioning of the taxpayers.
In the process of drafting this study an interview was conducted with SFS representatives, where were aspects of the legal framework addressed, the general functioning of the institution, the internal procedures for ensuring the integrity of the institutions and its’ staff, as well as the financial capacity of the institution and how it uses public resources. Additionally, the study analyzes was analyzed the institutional website, publicly available reports, and the information provided by the SFS at the request of IDIS "Viitorul".
The "Civil Society Support to the Parliament of the Republic of Moldova in Promoting Economic Reforms and Evaluating Independent Regulatory Agencies" Project is supported financially by the Soros Foundation Moldova.
The Soros Foundation Moldova promotes the values of an open society, supports democracy, supports innovative ideas, and encourages visionaries, who produce positive change, for Moldova to become a better place to live.
The responsibility for the content of this publication lies with the authors and does not necessarily reflect the position of the Soros Foundation.
Several arrears were identified in the implementation of the integrity measures established by the normative framework. A number of integrity tools necessary in order to ensure the institutional integrity of the State Labor Inspectorate (SLI) have not been implemented. This is the conclusion of the study ” An analysis of the corruption risk in the SLI” developed by the Institute for Development and Social Initiatives, “Viitorul” within the "Civil Society Support to the Parliament of the Republic of Moldova in Promoting Economic Reforms and Evaluating Independent Regulatory Agencies" project.
This report contains an analysis of the risks linked with the SLI. Such risks emerge from existing regulations in the normative framework and from the activity performed by the SLI. The document has five compartments, which describe the current context and the purpose of the study, analyze the risk factors generated by regulations in the field, the existence of integrity tools provided by the regulatory framework, and possible ways of implementing measures to ensure institutional integrity.
The study continues with the analysis of the operational risk factors, which may arise from the management of work-related information, from management of financial means, from public procurement, and from the inadequate implementation of internal managerial control. A separate compartment is dedicated to the analysis of the risks related to the state control performing process, starting with the planning stage and ending with the decision-making stage. The analysis of decisional transparency and access to the information within the SLI follows next. Finally, general conclusions were drawn up and several recommendations were submitted to eliminate the risks existing within the SLI.
The report highlights the inconsistencies of the provisions in the normative framework, which refer to the SLI’s control activity; such inconsistencies create confusion and cause inadequate implementation of existing rules. Also, the report highlights the provisions of the normative framework, or the lack thereof, which may affect the independence of the SLI.
The study found a lack of transparency regarding cases of breaches of ethical standards and improper conduct by labor inspectors. According to the reports’ findings, the risks of corruption related to the management of financial means within the State Labor Inspectorate are minor and have a low probability of occurrence.
The lack of transparency was also emphasized regarding public procurement, as not all the information and documents, stipulated in the regulatory framework in the field, are being published, something that may favor corruption risks and conflicts of interest. The study notes the low probability of corruption risks, as the SLI has carried out only few public procurements and they have are of a low value.
The risks related to the internal managerial control are serious and with a high probability of occurrence, which could have negative effects on the institution's reputation. This is the result of a lack of a Register of risks, including those of corruption, as well as of deficiencies in the organization and functioning of the internal managerial control system.
The report showcases the lack of a correct record of the data on the number of planned verifications, the number of performed verifications, as well as of their results, as major discrepancies have been identified between the public information presented in the annual activity reports of the State Labor Inspectorate and the State Register of Controls.
The analysis of the statistical data related to the state control carried out by the State Labor Inspectorate in the last three years, highlights several aspects which raise certain questions, can signal the presence of elements of corruption, in many cases underline the insufficient training of labor inspectors, but also indicate the need for a thorough analysis and for the necessary measures to be taken by the management of the institution. In this regard, it is mentioned the extremely small number of filed appeals against the minutes of the verifications, the lack of petitions and preliminary requests examined in the Council for dispute solving purposes, the annulment of the minutes by courts on the grounds of sanctionable findings, the expiration of the term of prescription and the incorrect drafting of the minutes, which led to their annulment. In addition, the study notes the inefficient accomplishment by SLI of its task of offering guidance to the economic agents.
In the process of drafting this study an interview was conducted with SLI representatives, in which several issues have been discussed, such as aspects of the legal framework, the general functioning of the institution, the internal procedures for ensuring the integrity of the institutions and its’ staff, as well as the financial capacity of the institution and how it uses public resources. Additionally, the study analyzes was analyzed the institutional website, publicly available annual and monthly reports as well as information provided by the SLI upon request for information of public interest.
The "Civil Society Support to the Parliament of the Republic of Moldova in Promoting Economic Reforms and Evaluating Independent Regulatory Agencies" Project is supported financially by the Soros Foundation Moldova.
The Soros Foundation Moldova promotes the values of an open society, supports democracy, supports innovative ideas, and encourages visionaries, who produce positive change, for Moldova to become a better place to live.
The responsibility for the content of this publication lies with the authors and does not necessarily reflect the position of the Soros Foundation.
During March – September 2020 the Institute for Development and Social Initiatives „Viitorul” is implementing the project „Regional media against local corruption”. The project aims to strengthen the capacities of regional mass-media and CSOs in curbing corruption and namely: the declaration of wealth and personal interests of local elected officials. The project is financed by the funds of the Development Cooperation and Democracy Promotion Programme of the Ministry of Foreign Affairs of the Republic of Lithuania.
„Following the 2019 local elections were elected 898 mayors and 11580 councillors (1108 district and municipal councillor and 10472 town and village councillors) who, according to the Law no. 133/2016 regarding the declaration of personal wealth and interests, are subjects of the declaration of wealth and personal interests. Through this project we aim to strengthen the capacities of media institutions and civil society organisations to monitor and elucidate corruption cases, especially in terms of the ability to dynamically analyse declaration of wealth and personal interests of local elected officials” said Ana Znaceni, the project manager.
Within the project are foreseen several regional seminars and one study visit to the National Anticorruption Centre and the National Integrity Authority. The seminars will take place with the participation of journalists and NGOs from Moldovan regions: North, Center, South and Gagauzia. Participating journalists following the capacity building events will develop journalistic investigations.
The topics to be tackled during the trainings refer to: the legal framework and the anti-corruption institution in Moldova: the provisions of the new “anti-corruption package”; declaration of wealth and personal interests: content and procedure; the system of control of assets and interests of persons with public functions; how the journalistic investigation is carried out?
Also, within the project are envisaged to develop three podcasts on topics related to monitoring and elucidating the cases of local corruption.
Considering the pandemic due to the coronavirus (COVID-19) the training “Monitoring and elucidating the cases of local corruption” for journalists and CSOs from the North region of the country will take place online on 3rd and 4th of June 2020 on the zoom platform.
„We hope that through this initiative, the experts of IDIS „Viitorul” will be able to contribute to increase the understanding capacity of the civil society representatives and journalists involved in implementing this project regarding the mechanisms and tools for curbing corruption at local and central level. Only together, combining efforts in this regard, we can identify solutions to overcome these challenges”, says Liubomir Chiriac, executive director of IDIS „Viitorul”.
The events take place within the project „Regional media against local corruption”. The project is intended to promote public intolerance to corruption and support anti-corruption efforts in Moldova through active involvement of regional media and CSOs. The project is financed by the funds of the Development Cooperation and Democracy Promotion Programme of the Ministry of Foreign Affairs of the Republic of Lithuania.
