The way the national procurement system works, the legal and institutional framework, the role and attributions of the Public Procurement Agency, the stages of the procurement process were among the topics discussed in the training for civil society representatives within the project "Innovative Improvements in the public procurement system of the Republic of Moldova through inclusion, creativity and compliance practices ", implemented by IDIS" Viitorul ", with the financial support of the European Union.

"When planning public procurement procedures, the contracting authority is not entitled to divide the procurement by awarding separate public procurement contracts for the purpose of applying a procurement procedure other than the procedure which would have been used under the Public Procurement Act if the acquisition would not have been split. If the public procurement contract is terminated, a new procurement procedure is carried out based on the balance of the initial contract and the assignment of this procedure according to the thresholds stipulated by the law for the application of the public procurement procedures ", explained Aurelia Botica, head of the control department at Public Procurement Agency.

According to Diana Enachi, coordinator of the project, effective monitoring of public procurement requires first and foremost a good knowledge of the public procurement mechanism, the legal and institutional framework and the entire procurement process. These elements, together with the application of monitoring tools, ensure the success of a monitoring activity that identifies irregularities and frauds and identifies responsible institutions.

Several representatives of civil society from different regions of the country will benefit from a complex Training Program in the field of public procurement monitoring between September 26 and November 16. The purpose of this program is to strengthen the capacities of civil society in the Republic of Moldova to understand the functioning of the public procurement system, the institutional and legal framework governing the sector, and the process of procurement by a public entity. Or, in the absence of this knowledge, monitoring of public procurement has a superficial and fragmented character. Participants will be trained in collecting and analyzing procurement data, applying innovative tools to identify irregularities and illegalities, and actions to empower public authorities to carry out transparent and effective procurement. Representatives of institutions with regulatory, regulatory and legal functions will be invited to sessions to discuss practical aspects of the procurement process with participants.

The event was organized in the framework of the project "Innovative Improvements in the Public Procurement System of the Republic of Moldova through Inclusion, Creativity and Practices for Compliance with Legislation" funded by the European Union, which was launched on 18 May 2017.

For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.
 

The Moldovan bank fraud has created huge public pressure on the banking system and the NBM in particular. The first development partners' reaction was to assist Moldova in creating a well-protected legal framework against banking abuses, but the major vulnerabilities of the system, especially linked to the transparency of shareholders in banks, remain unresolved so far. Although the Republic of Moldova seems to have the most restrictive EU legislation in the banking sector, we can not be sure of the stability of the system against new attempts to commit bank fraud, similar to the one that drove the system by stealing the billion, said journalist Victor Ursu in the show "15 minutes of economic realism".

Recently, the Government has approved the law by which banks and insurers are additionally supervised. The document comes to harmonize national legislation with the EU law, fortifying the protection of depositors', insurers' and investors' rights.

In particular, the draft law sets out the criteria for identifying a financial conglomerate and the issues to be pursued at its level, such as capital level, risk concentration, intra-group transactions, internal control systems and risk management procedures, reputation and the competence of the management of the financial groups.

Although the banking system of the Republic of Moldova is overregulated by the intervention of the NBM, Governor Sergiu Cioclea acknowledged in an interview that "the banks of the Republic of Moldova remain underdeveloped and lending activity is limited to large companies and the small ones suffer." He also says that "for the NBM, the transparency of the banking sector, the implementation of anti-money laundering rules and better supervision of credibility in society are very important." The transparency that ultimately promotes a form of "economic democracy."

"The banking sector of the Republic of Moldova is the neural point of the macroeconomic assistance program currently offered by the IMF. The mission to come to the RM will require the authorities to report the situation = diagnosis of the loans of affiliated persons and bank shareholders, a subject that is not fully clarified in Moldova, and it is not clear how the representatives of the IMF will react to unjustified delays, said Victor Ursu.

It is known that imposing tighter conditions by the IMF on the part of the IMF appeared against the backdrop of bank fraud in the three banks under liquidation after the Republic of Moldova concluded a Memorandum with the IMF. On the other hand, we find an apathetic disposition from the control and investigation bodies, which are responsible for the full recovery of the stolen money. We are witnessing a theater of absurd where charges are filed in the left and right that court trials have been filed, but no one has been convicted except for ex-PM Vlad Filat but who is also behind bars for influence trafficking and corruption, and not directly to steal money from fraudulent banks. "The impression is that the authorities intentionally delay the investigation against the backdrop of extensive political re-positions, which compromises the announced commitment of the national authorities to make light, in this case, the fraudster", concluded Victor Ursu.

The show is made by IDIS Viitorul in partnership with Radio Free Europe

The National Army's budget over time has been modest, ranging from 0.3 to 0.5 percent of GDP. In addition, the Army's contingent staff, with a staff of just over 11,000 staff units including the technical one, is under-funded and the army's equipment and equipment does not reach even 1/3 of the arsenal the army has 14th of the Russian Federation, illegally deployed on the left bank of the Dniester River. This is the opinion expressed by the economist, Iurie Gotisan, in the show "15 minutes of economic realism".

If we were to look at the budget figures in dynamics, starting with 2009, the National Army's funding diminished. The budget for the 2017 armed forces is barely covered by their operational expenditure, nor is it about equipment, financial supplements for the staff, and many other dimensions that imply its development and evolution. "The rescue collar would be the involvement of Moldovan soldiers in various international peacekeeping operations, particularly under the aegis of the UN, but this would only be for a very small number of troops. The last salesmen of the presidency, the government, and some political parties, the ban on the participation of the National Army in military exercises or international operations, lead to a greater return on the field", Explains Gotisan.

"The state alone has neither the capacity nor the financial resources to modernize and strengthen the army. Moreover, it can not even cope with those Russian special forces deployed in Transnistria. The funding of armed troops has never been a priority and, apparently, it is not the issue of the current or former government", Gothisan explained.

The military equipment provided by the National Army is worn both morally and physically. Respectively, the maintenance of the army - either with equipment or with food - can not be ensured by the Government. Moreover, we have soldiers in the security zone, who carry out their service under rather difficult conditions. Or, if we talk about air security, the battle, then the juncture is dramatic.

In conclusion, the economist Iurie Gotisan wonders rhetorically if he would deserve in the context of Moldova the status of neutrality, military, respectively would the state of such an army or rather military diplomacy? Diplomacy often handed over by the ex-member of the parliamentary commission for national security and defense, the current Ambassador and Permanent Representative of the Republic of Moldova to the UN.

The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.

For more details, contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.
 

The trade relations of the Republic of Moldova with the Russian Federation entered a deadlock in August 2014 after Chisinau signed the Association Agreement with the EU. In the meantime, Moscow introduced customs duties for Moldovan agri-food products, and then the embargoes came one after the other, and they continue at the present time. Fruit and vegetable deliveries in the Russian Federation are at the mercy of political decisions, and promises by the head of state, Igor Dodon, to restore exports to the Russian market are only rhetorical. This is the opinion expressed by IDIS expert "Viitorul" Ion Tăbârţă during the 15 minutes of economic realism show.

Moldovan President Igor Dodon has repeatedly stated that he will deal with the issue of Moldovan fruit and vegetable exports to the Russian Federation, he said he had discussed this topic during his meetings with Russian Prime Minister Dmitry Medvedev and Deputy Prime Minister Dmitry Rogozin , but we see that without major results.

"Maintaining the embargos reveals that President Igor Dodon does not honor his promises in the electoral campaign that the trade restrictions for Moldovan fruits and vegetables will be removed after he gets to the helm of the state. Moreover, Dodon also promised to simplify the conditions of working of Moldovans in the Russian Federation, the situation of which remained broadly unchanged" Tabârță said.

According to the expert, Dodon declares, whenever he has the opportunity, that Moldova has increased its exports to the Russian Federation, but official statistics contradict it - the share is around 20% and the EU remains the main trading partner of the Republic of Moldova with a quota of 63.4% in the first semester. The logic of Igor Dodon's statements is part of the mission of the Russian Federation's geopolitical scenarios to restore the influence of Moscow in the former Soviet space, and the head of the Moldovan state is part of the Russian political scenario on the Republic of Moldova.

The show is made by IDIS "Viitorul" in partnership with Radio Free Europe.

For more details, contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.

In 2017, we are witnessing a recovery in the construction industry since the crisis last year. In the first two quarters there is an unprecedented revival of the commissioning of the apartments and most probably this year we can reach the number of 8000 apartments - the highest level from the independence of the Republic of Moldova. This is the opinion expressed by the economist IDIS Viitorul, Veaceslav Ionita in the show "15 minutes of economic realism".

Data from the National Bureau of Statistics shows that in the first half of the year we have an unprecedented increase of 34% in the dwelling of 4100 dwellings. If we look at apartments, the increase is even higher than 64%, at 3654 apartments in half a year. This rise has raised several questions about the direction of the construction industry.

Economist Veaceslav Ionita argues that in 2017 we are witnessing a recovery of the construction industry after the precarious situation in 2016 when the sale of flats has experienced a sudden fall, according to the Cadastre data. If there were 15,200 sales annually by mid-2016 - a steady figure, then in the third quarter we witnessed a collapse of the property market linked to two factors. The number of purchase contracts dropped to almost 4,000 quarterly to 1940, and the mortgage practically disappeared, reaching 140 times a quarter compared to 1,500 contracts as previously.

In 2016, we witnessed a crisis in the real estate market and was dictated by the negative perception of the citizen. Moreover, the number of those who bought apartments from their own money has fallen, but not so dramatically compared to those who bought out of borrowed money. Thus, people who intended to buy and had money did not change their purchasing decision, they were waiting, and those who intended to buy apartments from borrowed money preferred to postpone the purchase because of the uncertainty. The collapse of demand for apartments and the number of citizens to borrow led to the largest decrease in the number of apartments in operation. If in the year 2015 the third quarter of the year reached 6250 apartments, then in the similar period of 2016 the figure was 4,500 apartments. Later, in 2017, a recovery began on the background of changing the perception of the citizen, reviving the mortgage.

"We are currently undergoing a reformation of the real estate market, a revival of the market and the bankruptcy of several uncompetitive companies. In the years to come, we will witness the completion of projects started ten years ago. Prices will be kept at a fairly low level as developers will have to get rid of illiquid assets. At the same time, there will be a revival of the consumer demand on the background of demand driven in 2016", Ionita concluded.

The show is made by IDIS Viitorul in partnership with Radio Free Europe.

For more details, contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.
 

Although the Republic of Moldova has the one-stop-shop law to facilitate entrepreneurial activity, it still operates with screeching, and the business complains about bureaucracy, the delay in the issuance of documents. This is the opinion expressed by IDIS Viitorul expert Viorel Pârvan during the program ”15 minutes of economic realism”.

According to Pîrvan, the one-stop-shop exists only at the level of legislation, as businessmen face the same problems of corruption, waste of time and money for obtaining permissive documents. "The main reasons that hamper the work of the counter are the lack of a common conceptual understanding of the" One Stop Counter "principle, the insufficient interconnection between institutions, the lack of electronic exchange of information between authorities, the poor cooperation of public authorities / institutions in the delivery of public services, civil servants and political involvement ".

The one-stop shop law should have a positive effect on the business climate in the Republic of Moldova and on every economic agent that needs to obtain authorization, but in reality, we do not see an inflow of investment and business. The biggest problem is corruption. "The one-stop shop should minimize corruption by excluding direct contact with the civil servant. However, the economic agent's mention, the more and more often the private sector directly interacts with civil servants, the more possible the occurrence of corruption situations, "Pîrvan explained.

In conclusion, Viorel Pîrvan said that in order to streamline the activity of the one-stop-shop it is necessary to digitize the process of submitting requests for public services, to elaborate the regulatory framework for public services at the level of the primary norms to define clearly the "public services" and the diversity of services public, other concepts of international positive practices, such as front-office and back-office, and the full use by public authorities of the existing eGovernment infrastructure (government electronic platforms and services already available) to reduce the burden (burden) administrative services both for the providers and for the applicants / beneficiaries of the public services.

The show is made by IDIS Viitorul in partnership with Radio Free Europe.

For more details, contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.

Expenditure and transparent public procurement give the tone of good central and local government. The way in which public entities use public resources remains a pressing problem facing the Republic of Moldova. Civil control from civil society can have a major impact on accountability of public authorities and the consolidation of good governance. It is the generic that launched the Civil Society Training Program within the project "Innovative Improvements in the Public Procurement System of the Republic of Moldova through Inclusion, Creativity, and Practices of Law Enforcement", sustained by the European Union.

Several representatives of civil society from different regions of the country will benefit from a complex Training Program in the field of public procurement monitoring between September 26 and November 16. The purpose of this program is to strengthen the capacities of civil society in the Republic of Moldova to understand the functioning of the public procurement system, the institutional and legal framework governing the sector, and the process of procurement by a public entity. Or, in the absence of this knowledge, monitoring of public procurement has a superficial and fragmented character. Participants will be trained in collecting and analyzing procurement data, applying innovative tools to identify irregularities and illegalities, and actions to empower public authorities to carry out transparent and effective procurement. Representatives of institutions with regulatory, regulatory and legal functions will be invited to sessions to discuss practical aspects of the procurement process with participants. At the same time, in order to promote good local practices and intensify local procurement monitoring actions, three working visits will be carried out in different regions of the country, where participants will have the opportunity to see the results of the monitoring activities and how they contributed to improve local governance. At the opening of the program, IDIS Viitorul Director, Igor Munteanu said: "What happens in the field of acquisitions affects the pockets of every citizen. Public procurement accounts for 5-10% of GDP. But trust is manifested by the way people look at the priorities of the institutions by how they can monitor them. And this project launched by IDIS Viitorul has this goal",explained IDIS Viitorul director Igor Munteanu.

Project Coordinator Carolina Ungureanu reviewed the main recommendations for civil society involved in monitoring how public authorities use public money. It is a clear definition of roles and responsibilities, risk assessment and mitigation, and the use of quality control mechanisms.

Valeriu Ciorbă from the http://www.colonita.eu/ portal highlighted the role of civil society in monitoring public procurement. He exemplified a procurement contract from Colonita, linked to a white thread, through which local authorities purchased a 1.7 million lei auto-trader who is currently ruining under the fence of a local councilor.

The event was organized within the framework of the project "Innovative Improvements in the Public Procurement System of the Republic of Moldova through Inclusion, Creativity, and Practices of Law Enforcement" funded by the European Union, launched on 18 May 2017 by IDIS Viitorul .

For further details, please contact the press officer, Victor URSU, at the following address: ursu.victoor@gmail.com or at 069017396.

Between September 5-7, experts from IDIS “Viitorul”, Viorel Chivriga and Victor Parlicov participated in the 27th edition of the Economic Forum in Krynica, Poland.

"The Association Agreements signed by the Republic of Moldova, Georgia and Ukraine with the EU represent a guarantee of the pro-EU course, with obligations and responsibilities to support democratic governance models in these countries.

States in transition make often mistakes which cost. It is important not to make mistakes, but to recover, learn from it and create conditions that make good governance the only possible option to modernize the society. Many people blame parties and politicians for the poor state of the economy, but these elites also appeared due to the type of economy that followed the collapse of the USSR under conditions of an uncertainty of purpose and amnesia of the elites. Reforms have been done against someone rather than for the benefit of the public good, which is heavily defined by these elites. The brief history of the transition is full of cases where politicians who have seen kings have lost power or woke up in prison despite all warnings and political predictions.

It is time to have fewer failures in the economy and administration. It is time for the transformations demanded by the citizens of our states”, believes Viorel Chivriga. The expert spoke in the panel "Europe at a crossroads: a European perspective for Ukraine, Moldova and Georgia"

Viorel Chivriga listed the benefits of the EU-Moldova Association Agreement, supporting the idea of systemic changes brought to the service of the population. "2.5 years after the DCFTA's entry into force - the share of Moldovan exports to the EU in total exports was 63%, over 60% of companies export to the EU, 53.4% of total FDI came from the EU, 14,400 European / international standards and annulled about 1,600 Moldovan conflicting and overdue standards, barriers to business were removed (only the Customs Service abolished about 150 orders of the institution), the Moldovan laws are harmonized with the acquis communautaire".

In the field of tourism, Viorel Chivriga, who moderated the panel "Combating stereotypes - the impact of national and regional image on tourism and economic development", said that the political and economic stability along with the investment climate in our states are the paper mill the country's attractiveness for any a potential investor, and myths and stereotypes can be combated or used cautiously to increase attractiveness. "Moldova does not have a functional mechanism to attract FDI. Some progress is being made in improving economic performance, reducing barriers for SMEs, improving the legislative framework, reducing tax burdens, business finance, but these are little known to international media and potential investors”.

In the field of energy, expert Victor Parlicov drew attention to new trends in the natural gas market, namely the growing role of the US as a natural gas supplier to regional markets in Europe and Asia. The importance of compressed natural gas (LNG) reception projects - both recently completed in Lithuania and Poland and those under construction in Croatia and Germany - has been emphasized. Particular attention has been given to the imperative need to strengthen interconnections between natural gas transmission systems between European countries as a prerequisite for creating a common energy market.

The Economic Forum in Krynica is an annual event, organized at the initiative of the Polish Government for all regional actors interested in cooperation and democratic progress, and which is highly appreciated by IDIS experts for the open spirit and knowledge horizons.

Termoelectrica and the representatives of the housing sector in Chisinau met on September 12th in a public debate to discuss solutions to overcome the debts by homeowners associations. While S.A. "Thermoelectric" invests in energy efficiency projects, housing fund managers remain swallowed by debts and obligations to public service providers.

"Heat tariffs have not been adjusted from 2001 to 2007, and in 2008 there was the first increase in tariffs and immediately compensations were introduced for the cold season. From 2011 to 2015, the heat tariffs were adjusted by ANRE four times, and during this time, there was a problem of recovering money from consumers who did not have the ability to pay the invoices at the increased rates. And in 2015, when Termoelectrica was created, new problems arose - the old issues related to the debts accumulated by Termocom remained unresolved and the situation became more strained between the heat supplier and the housing fund manager", said Victor Parlicov, an energy expert at IDIS "Viitorul".

Thus, over 26 years, the debts to S.A. "Termoelectrica" have grown, and the residential fund is an absolute leader in this chapter, accounting for 98% of total historical debts.

"Debts are formed because of defaulted consumers and then the HOA manager is in a bad situation. Out of the three thousand controlled apartments this year (out of 26 thousand), we identified 117 cases of theft: de facto the consumer was connected to the centralized heating and de jure used the autonomous boiler. There is still a problem of the housing stock management. We would be very pleased to contact the consumers directly, but they will have to respect some obligations”, believes the director of S.A "Termoelectrica”, Veaceslav Eni.

In turn, housing fund managers claim that they are sued despite paying bills in advance and not understanding where the debt arises.

According to Victor Cojocaru, president of the housing cooperative no.185, S.A. "Termoelectrica" provider tries to put the historical debts on the consumer's shoulders. "Every three years, the provider attacks the CCL in court, asking us to pay various fees, and the bailiff's services, blocks the bank account without accepting the rescheduling of debt for a period of time determined by both parties".

"Debts are formed not only from heating, but also from water. Counters that have recently been checked do not work properly. As managers, we are intermediaries and we buy gcal and sell it to tenants. It turns out we work for Termoelectrica for free, but the institution applies penalties", believes Alla Poltavcenco, manager of APLP 51/173.

Energy expert, Sergiu Tofilat explains how the debt is accumulating and what solutions would be appropriate: "Legislation provides that the difference from the common hot water meter and the individual meters is shared between the consumer, but often this difference is paid by those who indicate the real consumption. The "Apa-Canal Chisinau" collects these debts from IMFGL, and the Termoelectrica does not allow this because of the payment of gas to Moldovagaz. Or, the methodology is crooked and we have to address the Government or the problem of managing the housing sector, and in this respect, the local government needs to get acquainted with Termolectrica to take on these debts".

Also, at the time of the tenants 'decision to reorganize as co-owners' associations, Termoelectrica forces the managers of the associations to recognize these debts and take them through concession to his management.

The debts previously invoiced to the tenants are not a problem because there are the invoices sent to the tenants and the collection of the necessary funds to pay off the debt. While unvarnished debts have a limited prescription, so forced enforcement of these debts is virtually impossible. But at the same time, the tenants refuse to continue the registration process if, as a result of this reorganization, they will have to pay several hundred thousand extra lei. Thus, these debts become an important barrier to reorganizing the old residential blocks into the condominium association.

"We are attending different meetings trying to explain to people what APLP or condominium means, but we do not have the majority of 2/3 needed for reorganization. We are helping the HOAs managers with legal support, but unfortunately, in 17 years, only ten tenant associations have been reorganized because they fear the burden of debs”, says Sergiu Negru from the Chisinau Town Hall.

Among the solutions recommended in the case of the debate for diminishing this situation, we can mention the conclusion of a tripartite contract between the consumer, the manager of the housing stock and S.A. "Termoelectrica", the modification of the normative acts regarding the allocation of the hot water consumption.

Find more in the Conclusions and recommendations of the public debate.

The event was held within the initiative 'Improving energy efficiency program for low-income families in Moldova", implemented by the Institute for Development and Social Initiatives (IDIS) "Viitorul" with the financial support of World Jewish Relief Foundation. It aims to raise the standard of living of low-income tenant families by improving energy efficiency measures that significantly reduce the heating costs and consumption.

For more information, please contact Ana – Maria Veverita on ana.veverita@viitorul.org or (0 22) 221844.

Following the countless restrictions imposed by the Russian Federation since 2005, Moldovan companies have reorientated to the EU market, and now the share of exports on the EU market is 63%, while the CIS is experiencing a slow change. A total return of exporters on the Russian market is impossible given that the niche was occupied by other states with more competitive products than Moldovan ones. This is the opinion expressed by IDIS Viitorul Program Director, Viorel Chivriga, within the program ”15 minutes of economic realism program”.

The data on the level of exports and imports in the first half of 2017 shows that the Republic of Moldova returns to its position in 2012, 2013.

According to Chivriga, the Association Agreement with the EU has had a positive impact on the foreign trade of the Republic of Moldova. "We have about 1400 companies that successfully export to the Community market, more than 2100 export tariffs, and some tariff positions are fully covered within quotas. We also witness a qualitative change in the performance of state institutions. An example is the Customs Service which has removed the barriers to exporters being overruled over 140 unnecessary orders, many of which are harmful to entrepreneurs. At present customs administration is much better and budget revenues are on the rise. And the Fiscal has improved its capabilities under the conditions that many more chronic problems have been removed. "

There are some changes to the application of the provisions of the Association Agreement. It is the harmonization of the legislation with the acquis communautaire, the emergence of modern technical regulations and the takeover of more than 14,400 European / international standards, the cancellation of about 11,600 conflicting Moldovan standards but also overdue. At the same time, there are great possibilities to influence exports by improving the real-sector areas of the economy where there is a fierce stabilization. In agriculture there is growth and we are detached from the situation when a good year was preceded by the year of calamities and growth was stopped. There is a shift in the service sector, especially IT companies. "If we talk about regions, we notice an increase in exports to the EU from Gagauzia and the left bank of the Dniester. Moreover, the authorities of Gagauzia draw attention to the change of the foreign trade paradigm for which any market is important if you have the chance to get hold of it and develop your business", Chivriga said.

The program director listed two issues that should draw the attention of the authorities to increase exports. It is about attracting investments and insistent promotion of Moldovan goods and products. "It is a void that must be filled with the utmost attention. We have products and assets that are competitive, but we need some policies to promote them on foreign markets".

The show is made by IDIS Viitorul in partnership with Radio Free Europe.

For more details, please contact the Public Relations Coordinator IDIS Viitorul, Victor URSU at ursu.victoor@gmail.com or call 069017396.