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.