financing to political parties from private and budget funds in 2010

Financing toPolitical Parties

from Private and Budget Funds in 2010

Podgorica, June 2011

The present Publication is a part of the Money and Politics Project ,funded by:

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Financing to Political Parties from Private and Budget Funds in 2010

2

IMPRESSUM

Citing and using the material and information contained therein for notforprofit publicationsor in public media, while for the purpose of informing the citizens, as well as the use thereof forother noncommercial purposes, shall be allowed upon a mandatory stating the source thereofand the copyright owner.

The use of the material for any other purpose shall not be allowed without a previous approvalby the copyright owner (Center for Democratic Transition).

CDT shall not be held liable for any subsequent interpretation of the information published herein.

PUBLICATIONFinancing to Political Parties from Private and Budget Funds in 2010

PUBLISHERCenter for Democratic Transition (CDT)

VII Omladinske bb81 000 Podgorica, MontenegroTel: +382 20 207 070, 207 071

Tel/Fax: +382 20 207 072Email: [email protected]

www.cdtmn.org

FOR THE PUBLISHERDragan Koprivica

PROJECT AUTHORSDragan Koprivica and Milica Kovaevi

PROJECT COORDINATORMilivoje Krivokapi

RESEARCHERSBiljana Pejovi, Milana abarkapa and Milivoje Krivokapi

TRANSLATORAna Kneevi

PREPRESS AND GRAPHIC DESIGNBlao Crvenica and Bojan Tei

PRINTINGAP Print, Podgorica

CIRCULATION800

Table of contents

333

TABLEOFCONTENTS

1. Introduction ............................................................................................................4

2. Financing to Parties from the Private Funds ............................................6

3. Montenegro ..........................................................................................................10

4. Andrijevica Municipality ................................................................................11

5. Bar Municipality ................................................................................................13

6. Berane Municipality ..........................................................................................15

7. Bijelo Polje Municipality..................................................................................17

8. Budva Municipality............................................................................................19

9. Cetinje, Historical Capital................................................................................21

10. Danilovgrad Municipality ............................................................................24

11. Herceg Novi Municipality ............................................................................26

12. Kolain Municipality ......................................................................................27

13. Kotor Municipality ..........................................................................................29

14. Mojkovac Municipality ..................................................................................31

15. Niki Municipality ........................................................................................32

16. Plav Municipality ............................................................................................33

17. Pluine Municipality ......................................................................................35

18. Pljevlja Municipality ......................................................................................37

19. Podgorica, Administrative Capital ............................................................39

20. Roaje Municipality ........................................................................................44

21. avnik Municipality ........................................................................................46

22. Tivat Municipality............................................................................................48

23. Ulcinj Municipality ..........................................................................................49

24. abljak Municipality ......................................................................................51

25. Analysis of Legislative Framework ..........................................................53

26. Annexes................................................................................................................57

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Dear readers,

This is the publication titled Financing of Political Parties from Budget and Private Sources in 2010,which is the outcome of the research done within the Money and Politics Project implemented bythe CDT with the support of The Balkan Trust for Democracy (BTD). The aim of the publication andresearch concerned is to give as comprehensive as possible review of funding from both public andprivate sources for the election campaigns of parties and candidates.

The information sources we used for the research are the laws and ordinances published in the Official Gazette of Montenegro and the official data that the Ministry of Finance of Montenegro andlocal selfgovernment authorities provided us with pursuant to the Law on the Free Access to Information, as well as reports by political parties published on the Web Site of the State Electoral Commission (SEC).

In addition to the Introduction, the present publication includes 26 chapters total. The second Chapter gives an overview of the private funding of political parties. The said Chapter reflects the analysisof the Annual Statements on Property of parliamentary parties; the Annual Statements of Accountsof political parties and the audits of such accounts; financial statements of the parties that contestedthe local elections in 2010; penalty provisions provided for by the Law on Financing of Political Parties. The subsequent 22 chapters give a review of the funding to political parties from the Budgetsources in 2010, at national level and at the level of individual municipalities. Besides the statisticson payments made to political parties, the present publication compares the obtained data to theprovisions of governing laws. Chapter 25 gives a detailed analysis of the legislative framework, inorder to facilitate your reading and understanding of individual analyses of the funding concerned.The last one, i.e. Chapter 26 includes the annexes with all additional pieces of information relatingto the research.

Within the framework of the research given under the present publication, for the first time we didthe analysis of the Annual Statements on Property of parliamentary parties, which has revealed thatthe total incomes of parliamentary parties in 2010 amounted almost to 4,500,000.00. Besides,after the analyses of those Statements, we have found that the new form for reporting does not provide for an obligation to publish the names of donors. Disclosing the names of donors by parties isin line with democratic and transparency principles which ensure that media, civil society and citizens can control the financing of political parties, taking into consideration that professional control of parties finance in our country is absent. Only Democratic Party of Socialists disclosed thenames of donors that funded regular activities and election campaigns in the previous year. Regardless New Serb Democracy (NOVA), Socialist Peoples Party (SNP), FORCA and Bosniak Party (BS) reported the contributions made by natural persons, they did not disclose their names which wouldbe in line with the positive practice. Whether it is possible that not a single citizen helped the activities of Movement for Changes (PzP) and Social Democratic Party (SDP) last year is an issue open todoubt, taking into account the said parties did not report donations from natural persons.

Introduction1.

Uvod

555

What is indicative of this situation is that last year parties gained less than 19,000.00 from legalpersons. Disclosing the names of donors was omitted also in that case. The amount contributed bycompanies was significantly lower that that by which natural persons supported party activitiesand, taking into consideration the comparative practice, such situation is unlikely. A practice thatcompanies are not interested in assisting activities of parties in the countries in which they operateis almost unknown. On the contrary, it happens frequently that one company funds several opposingparties. Reasons for the situation are hard to track down, since it is unknown whether the partieswish to hide the amounts they have been donated from companies or they wish to conceal the companies that assist their activities. Anyway, this is about a very dangerous situation, since the publiccannot find out whether and to which extent the capital has an effect on decisionmaking.

When it comes to Annual Statements of Accounts of political parties, the major issue is that there is noappropriate form prescribed for submitting such statements of accounts. The situation makes unfeasiblea good insight in financial flows of political parties and thereby it makes impossible a control of partyfinance. Besides the foregoing, the Web Site of the State Electoral Commission did not publish even 35Reports on the Audit of Annual Statements of Accounts which is a serious violation of the Law.

During the last year, elections of councilors were held in 15 municipalities in Montenegro. Regardlessof the legal obligation to publish reports on the raised and expended funds, the Web Site of the StateElectoral Commission did not publish even 30 such reports and 49 audit reports. Besides, the StateElectoral Commission did not publish on their Web Site the names of natural and legal persons thatcontributed funds to the applicants of electoral lists which is their obligation according to the Law.

Budgets of local selfgovernments projected more than 1,350,000.00 for regular financing of political parties in 2010. According to our findings, municipalities disbursed more than 700,000.00for regular functioning of political parties, which was more than 630,000.00 lower amount thanprojected. It has been observed in almost all municipalities that political parties were disbursedfewer funds than projected. Three municipalities, namely Herceg Novi, Kolain and Bijelo Polje, havenot provided the pieces of information we required, whereas Cetinje and Ulcinj did not make anydisbursement to political parties.

We have concluded that the one wishing to examine party finance cannot obtain a large number ofpieces of information. That is a consequence of deficiencies in the Law on Financing of Political Parties, since it is not ensuring a high level of transparency of such financing; it does not provide for effective control methods; and it does not specify responsibilities for undertaking measures aimed ata better enforcement of the Law.

It is important to emphasize that the Center for Democratic Transition is a member of the WorkingGroup on drafting the new law on financing of political parties, as well as that we will give our bestto contribute, by our experience and knowledge gained in this one and in similar researches, to creating a better legal solution that would rely on transparency principles and that would ensure a clearand controlled process of the financing of political parties in Montenegro.

The best advocate of any real interest in the topic of the financing of political parties is its presencein media. Since the begging of the year, more than 500 articles in electronic and print media havedealt with the financing of political parties. Comparing that with the situation in the previous years,it is about a serious increase in the interests in the topic, the major merits thereof being attributedexactly to the researches and analyses done by the Center for Democratic Transition in the field ofthe financing of political parties.


6

2. Financing to Partiesfrom the Private FundsThe Center for Democratic Transition analyzed the private financing of political parties in 2010. Reports published at the State Electoral Commissions Web Sites and the enforcement of the applicable Law on Financing ofPolitical Parties were analyzed.

As compared to the previous research, the novelty is reflected in the fact that the Ministry of Finance approvedthe Instruction on the Contents of and/or on the Form for Annual Statement on Property of Parliamentary Parties, ensuring thereby for the first time to make an analysis of the status of parties property.

The said analysis has identified several key issues concerning the shortages of the Law, whereas particularly inrelation to the part governing the transparency, control of and sanctioning violations of the Law provisions.

INTRODUCTION

Article 25 of the Law on Financing of Political Parties prescribes that parliamentary parties shall be requiredto submit to the State Electoral Commission annual report on their property expressed by type, size and origin,not later than on 31st March of current year for the pervious one. Regardless the Law was enacted in 2008, Ministry of Finance has approved the Instruction on the Contents of and/or on the Form for Annual Statement onProperty of Parliamentary Parties. After approving the said Instructions, the Ministry extended the deadline forsubmitting the annual statements by May 01st, in order to make some time for the parties to present their statements in writing (http://www.mif.gov.me/vijesti/104664/SaopstenjeRokzadostavljanjegodisnjihizvjestajaoimovinipolitickihpartijaproduzenzamjesec.html). The new Form is considered as a significant step forwardto transparency of the political parties functioning, since it was designed in the manner that ensures both anoverview of parties assets and incomes expressed by categories and a method of acquiring thereof, with thecumulative amount of incomes stated at the end of the document and signed by a responsible person. A shortageof this new Form is reflected in the possibility to present a detailed overview of acquiring the incomes via anannex. For example, if certain political party has reached an income based on donations made by legal or naturalpersons, the Form requires as sufficient to state the cumulative amount of such donations with the names ofdonors to be given under the annex. On the one side, such solution makes sense since the proliferation of annual statement text is avoided in such manner. However, the Instruction has not prescribed an annex submissionas mandatory; thereby, an insight in the balance of incomes available to parties is practically prevented becausea party need not present such annex. We consider that the introduction of the mandatory submission of annexalong with the Annual Statement would be of importance to improving the system of financing of political parties, given that a more comprehensive idea of how the assets are acquired by political parties is ensured thereby.

According to Article 24 of the Law on Financing of Political Parties, the State Electoral Commission shall publishthe Statements in the Official Gazette of Montenegro and on their Web Site. The Web Site of the State ElectoralCommission published 10 Statements of political parties, out of which 8 Statements were published in line withthe new contents and forms, whereas other ones were published on the Form for Annual Statement of Accountsprescribed for NGOs. The analysis of the Statements published in line with the new Instructions has revealedthat the total incomes of parliamentary parties in 2010 amounted to 4,278,541.07. The said amount does notinclude the incomes of parliamentary parties that submitted their respective Statements in the Form for AnnualStatements of Accounts prescribed for NGOs, such parties being Democratic Union of Albanians (DUA) and Democratic Alliance in Montenegro DSCG. Coalition Perspective did not submit any Annual Statement, violatingthereby the Law.

ANNUAL STATEMENTS ON THE PROPERTY OF POLITICAL PARTIES

Financing to Parties from the Private Funds

7

Observed by parties, the highest incomes in the last year were reached by Democratic Party of Socialists (DPS),i.e. 2,249,008.00, and then by Socialist Peoples Party (SNP) 588,249.98. Social Democratic Party (SDP)reached the income amounting to 502,715.00, New Serb Democracy (NOVA) raised the one amounting to425,651.62, Movement for Changes (PZP) the one amounting to 224,703.74 and Bosniak Party (BS) the oneamounting to 155,263.60. The least income was reached by Croatian Civic Initiative (HGI) 69,030.65 andNew Democratic Force (FORCA) 63,918.48.

The Budget funds used by parliamentary parties based on the regular financing of their activities were morethan three million Euros, whereas the remaining necessary funds were provided via other fundraising means.As for donations from legal persons, parliamentary parties raised almost 19 thousand Euros (i.e. 18,896.00),whereas the amount of donations made by natural persons was considerably higher and amounted more than660 thousand Euros (i.e. 667,790.00). The highest income from donations was reached by DPS, i.e.654,190.00, with their Statement on Property stating all the names of contributors. Almost two thousand natural persons contributed funds to that party, their amounts ranging between 20.00 and 2,000.00, the latterbeing the legal maximum for such kind of donations. NOVA gained the income amounting to 9,000.00 fromnatural persons; SNP raised 4,120; and FORCA and BS raised 280.00 and 200.00 respectively. The Statements of those parties did not provide the names of contributors. Two parties, namely Social Democratic Party(SDP) and Movement for Changes (PzP) did not report the donations from private sources. Whether it is possiblethat not a single citizen helped the activities of these parties last year is an issue open to doubt. Regardless neither the Law nor other regulations have prescribed an obligation to disclose the names of persons contributingtheir respective funds to political parties, we consider it would be correct since such a rule would be in linewith transparency principles.

When it comes to the contributions of legal persons, names of the contributors were not disclose as well. Further,it sounds impossible that companies did not support the activities of political parties. A practice that companiesare not interested in assisting activities of parties in the construes in which they operate is almost unknown.On the contrary, it happens that one company fund several opposition parties. Reasons for the situation arehard to track down, since it is unknown whether the parties wish to hide the amounts they have been donatedfrom companies or they wish to conceal the companies that assist their activities. Anyway, this is not about avery dangerous situation; the public is deprived of the pieces of information concerning the effects of capitalon the decisionmaking.

A detailed analysis of the Annual Statements of political parties is given in Annex A.

The Law on Financing of Political parties prescribes that political parties shall be under an obligation to submittheir respective Annual Statements of Accounts to the competent authority (namely to the Ministry of Finance).Besides, political parties shall be under an obligation to submit the Reports on Audits of their respective AnnualStatements of Accounts to the State Electoral Commission. The State Electoral Commission is under an obligationto publish such Annual Statements of Accounts, as well as the Reports on the audit thereof both in the OfficialGazette of Montenegro and on the Commissions Web Site. The Law provides for that political parties shall beunder an obligation to submit their Annual Statements of Accounts, without specifying whether it is about parliamentary of nonparliamentary parties or parties that are active at local level. However, only eight parties {Democratic Center of Montenegro (DCCG), New Democratic Force (FORCA), Socialist peoples Party (SNP), PeoplesParty (NS), Socilaist Democratic party (SDP), Croatian Civic Initiative (HGI), Bosniak Party (BS) and DemocraticParty of Socialist (DPS)} out of 37 political parties that have been registered in Montenegro, have their AnnualStatements of Accounts published on the Web Site of the State Electoral Commission. One of the reasons forthat is definitely the fact that certain registered political parties are not active any more. The issue of those parties that are registered, but do not meet their obligations according to the Law, is still open. In that sense, it isnecessary to introduce a rule on deleting from the Register of Parties those ones that have not been carryingout their functions on which their existence is based.

The major issue when Annual Statements of Accounts are concerned is that neither specific Form for presentingannual statement of accounts nor tax return form has been prescribed. Over the previous period, the official

ANNUAL STATEMENTS OF ACCOUNTS AND AUDITS

attitude of the Tax Administration was that the from prescribed for NGOs may be used for the purpose, whilethe form for annual tax return prescribed for legal persons may be used for the submission of annual tax returnsby political parties. However, the fact is that the method of reporting prescribed for nongovernmental organizations is not the adequate one for political parties to report on their annual statements of accounts! The saidform is neither in line with the Law on Financing of Political Parties nor it meets the transparency requirements.In addition, it is not appropriate to reflect the total cash flows of political parties. Further on, such form doesnot offer any possibility to find out whether a party respected the Law in the part governing the financial operations of such party and, finally, the said form has not been aligned to the new one prescribed for the annualstatements on property; so, it is impossible to get a clear picture of incomes and expenditures that a partyreaches within a year concerned.

Having in mind the foregoing, it is obvious that the Ministry of Finance should prescribe, as soon as possible, anew form for reporting annual statements of accounts of political parties, since the actual situation does notensure a highquality insight in financial structures of political parties and, thereby, it makes impossible to havea control over the party financing.

As it has already been stated, political parties shall be under an obligation to submit to the State Electoral Commission the reports on the audits of their respective annual statements of accounts. If we take into considerationthe number of political parties registered in Montenegro, the analysis of the data on the State Electoral Commissions Web Site has revealed 35 reports on the audits of annual statements of accounts missing meaningthat the Law was violated in that respect.

The List of Political parties registered in Montenegro is given in Annex B.


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Over the previous year, local elections of councilors were held in 15 Montenegrin Municipalities. Eightyseven(87) electoral lists contested for 518 seats in local councils.

Local elections of 2010 were held in Andrijevica, Bar, Berane, Bijelo Polje, Cetinje, Danilovgrad, Kolain, Plav,Pljevlja, Pluine, Podgorica (Golubovci and Tuzi), Roaje, avnik, Ulcinj and abljak. The elections were repeatedin Ulcinj Municipality and in Town District of Golubovci.

According to the Law on Financing of Political parties, the applicants of electoral lists shall be under an obligationto submit to a competent local electoral commission within prescribed deadlines, as follows: a report on the National and Municipal budget funds expended for election campaign, as well as all the doc

uments relating to such report, and a report on the audit of such report; a report on the origin, amount and structure of the privately sourced funds raised and expended for election

campaign, as well as all the documents relating to such report; a report by a certified auditor on the completed audit if the total amount of privately sourced funds raised

and expended for election campaign exceeded 50,000.00.

Finally, a complete report on the origin, amount and structure of the funds raised and expended for electioncampaign, as well as a report on the audit of such report must be published in the Official Gazette of Montenegroand on the Web Site of the State Electoral Commission.

The analysis of the Web Site of the State Electoral Commission has revealed that, on May 16, 2011, 30 reportson the funds raised and expended and 49 reports on the completed audits were not published!

The communication with the Ministry of Finance has reveled that additional nine reports on the raised and expended funds were subjected to the audit, but they do not have an information why the reports concerned werenot published.

Besides, it is not clear on which grounds parties with seats won in local councils were distributed funds afterthe elections since they have not submitted either their reports on election campaign related expenses or reports

LOCAL ELECTIONS 2010

Financing to Parties from the Private Funds

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The Law on Financing of Political Parties provides for certain penalty provisions for cases of violating individualprovisions.

A political party or coalition that has failed to submit any of the legally prescribed statements shall be subjectto a fine ranging from onehundred to twohundred times the amount of the lowest wage in Montenegro. Besides,the responsible person of a party shall be subject to a fine ranging from fifteen to twenty times the amount ofthe lowest wage in Montenegro in case of the same violation.

The Law prescribed that a fine ranging from onehundred to twohundred times the amount of the lowest wagein Montenegro shall be imposed also on a municipal electoral commission if they have failed to submit the statements concerned to the State Electoral Commission, as well as on the State Electoral Commission if they havefailed to publish such statements and the names of natural and legal contributors. The responsible persons inthe said Electoral Commissions shall be subject to a fine due to the same violation.

CDT is calling upon the Ministry of Finance to request, as soon as possible, an initiation of a misdemeanor procedure against all the persons that have failed to obey the Law on Financing of Political Parties and to ensure,in such manner, a consistent enforcement of the said Law. As for the legal certainty, it is of a paramount importance to sanction adequately for any violation of any Law.

PENALTY PROVISIONS

on audits taking into account that Article 11 of the Law prescribes that such funds shall be distributed onlyafter applicants of electoral lists have presented such reports to a competent electoral commission. We are expecting that the Ministry of Finance shall check who violated the Law in any particular case whether the partiesthat failed to submit their reports or municipal electoral commissions that did not forwarded to the State Electoral Commission what they had received from political parties.

Due to a large number of unpublished reports, it is not possible to establish the amount of funds raised and expended by political parties that contested the elections which affect considerably the transparency of electoralprocess. We are calling upon the Ministry of Finance to enforce the Law explicitly and to the fullest, as well asto file reports on the violation of the Law. The CDT will monitor this process and inform the public thereof.

The situation is interesting when it comes to donations from private sources. Even 221,011.00 were providedfrom natural persons contributions. Based on that, the highest amount was raised by DPS 160,506.00, andthen by SDP and SNP, i.e. 59,505.00 and 1,000.00 respectively. The Annual Statement of DPS, as well as thestatements on funds raised and expended by the Party and the Coalition it led, stated the names of all naturalpersons that had contributed funds for election campaign expenses. It is about more than 300 natural persons.When it comes to SDP, the names of contributors were stated under neither the Annual Statement nor the Statements on Funds Raised and Expended, except for the Statement on elections repeated in Ulcinj. The amountthat SNP reported under their Annual Statement matched the amount stated under the Statement on FundsRaised and Expended for elections in Podgorica Municipality, and that Statement includes also the names ofcontributors.

When it comes to donations from legal and natural persons, it is important to emphasize that Article 26 of theLaw on Financing of Political Parties has been violated, with the State Electoral Commission being under an obligation according to the said Article to publish on their Web Site the names of natural and legal persons thatcontributed the funds to the applicants of electoral lists. Taking into consideration that was not done as well,we are witnessing one example more of an obvious breach of the Law.

The List of unpublished statements on funds raised and expended , as well as of statements on audits, is givenin Annex C.


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The information sources we used are the documents that CDT was provided with by the Ministry ofFinance, based on the Decision No. 081558/1 dated March 01, 2011, as well as the official documents published in the Official Gazette of Montenegro.

Montenegro

1 The 2010 Budget Law of Montenegro, Official Gazette of Montenegro, No. 007/0912 as of December 30, 2008 2 Official data obtained based on the Law on the Free Access to information.

3.

REGULAR FINANCING

The 2010 Budget Law of Montenegro projected the total amount of the Budget funds to be1,425,963,634.38, out of which 777,615,422.95 for the Operating Budget.1 The funds for the activities of the parliamentary parties were projected as 2,100,000.00, i.e. 0.27% of the Operating Budget.

There is a notable difference between the amount in the Law on Budget for 2010 and the amountobtained by the analyses of the Analytical Records. A detailed analysis of financing the regular activities of parliamentary parties is possible only after the approval to the Annual Statement of Accounts of the 2010 Budget.

Table 1: Funds disbursed for regular financing of political parties 20102

PARTY AMOUNT (IN )Democratic Party of Socialists of Montenegro 944,461.87

Socialist Peoples Party 450,108.04Social Democratic Party 267,977.76

New Serb Democracy 241,959.13Movement for Changes 163,903.29

Bosniak Party 111,866.10Democratic Alliance in Montenegro 59,828.86

Democratic Union of Albanians 59,828.86Croatian Civic Initiative 59,828.86

New Democratic Force FORCA 59,828.86Perspective NGO 59,828.86

TOTAL 2,479,420.49

Andrijevica Municipality

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The information sources we used are the documents that CDT was provided with by the Secretariat for Local Government Affairs of Andrijevica Municipality, based on the Decision No. 0073/2011041/1 dated March 03, 2011, Decision No. 0072/2011041/1 dated March 03, 2011and Decision No. 00702/2011041/1 dated March 08, 2011, as well as the official documentspublished in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Andrijevica municipal authority ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on financing of politicalparties in 2010.

3 Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.4 Official data obtained on the basis of the Law on the Free Access to Information.

AndrijevicaMunicipality

ELECTIONS OF COUNCILORS

Results of the Election of Councilors May 23, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated underthe Law on Financing of Political Parties.3 Accordingly, for covering the cost of election campaigns for the local elections in Andrijevaca Municipality, 0.15%, i.e. 1,132.15 should havebeen allocated from the Municipal Operating Budget projected to amount to 754,767.77 forthat year. According to the Analytical Records provided by Andrijevica Municipality, for coveringthe expenses of the election campaigns for the election of councilors 1,092.004 were allocated.

4.


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Upon comparing the Analytical Records with the documents published in the Official Gazette,we have reached to a conclusion that political parties were disbursed, for covering the cost ofelectoral campaign for the election of councilors, 1,092.00 total which was 40.15 less thanthe amount projected for the purpose by the Appropriation Ordinance for the Budget of Andrijevica Municipality.

Table 2: The amount of funds allocated to parties for the 2010 local elections6

PARTY 20% 80% TOTALDPS For European Andrijevica Sran Maovi 71.60 424.45 496.05

Coalition Better Andrijevica, Better Montenegro,SNP CG, Nova, PzP, SSR, DS, SPI i SP, JKP CG

71.60 424.45 496.05

Social Democratic Party For Better Tomorrow 71.60 0.00 71.60Radenovi Veselin, Councilor 0.00 28.30 28.30

TOTAL 214.80 877.20 1,092.00

REGULAR FINANCING

The projected Budget of Andrijevica Municipality amounted to 881,767.77, whereas, accordingto the formula, the Operating Budget was 754,767.77. The projected amount to be transferred topolitical parties, factions and associations was 7,283.147, i.e. 0.96% of the 2010 Operating Budget.

Based on both the documents published in the Official Gazette and the Analytical Records thatwe were provided with by the Andrijevica municipal authority in charge, it can be concludedthat the amount of 6,747.64 was allocated to regular financing of political parties, i.e. 535.50less than the amount projected for the purpose by the Appropriation Ordinance for the Budgetof Andrijevica Municipality.

The final analysis of financing the regular activities of parties in Andirjevica Municipality will be doneafter the Annual Statement of Accounts of the 2010 Budget of Andrijevica Municipality is approved.

PARTY AMOUNT (IN )Democratic Party of Socialists 2,542.55

Socialist People's Party 1,816.97Serb Peoples Party 895.17

Movement for Changes 340.27Social Democratic Party 252.40

Serbian Radical Party Dr Vojislav eelj 248.11Veselin Radenovi, Councilor 184.32

Democratic Serb Party 155.95Peoples Socialist Party 155.95

Peoples Party 155.95TOTAL 6,747.64

5 More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework. 6 Official data obtained on the basis of the Law on the Free Access to Information.7 Appropriation Ordinance for the 2010 Municipal Budget of Andrijevica, Official Gazette of Montenegro Municipal Ordinances

No. 014/105 dated April 15, 2010. 8 Official data obtained on the basis of the Law on the Free Access to Information.


After analysis of the received documents, we have found that the allocation of those funds wasdone according to 20%80% formula.5

Bar Municipality

13

BarMunicipality5.

The information sources we used are the documents that CDT was provided with by the Secretary of Bar Municipality, based on the Decision No. 030154/2 dated May 10, 2011, as well asthe official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Bar municipal authority allowed and ensured CDT, within the legally prescribeddeadline, the access to the required information by sending the accurate data on financing ofpolitical parties in 2010.



Funding for the expenses of the election campaigns of political parties was regulated under theLaw on Financing of Political Parties.9 Accordingly, for covering the cost of the election campaigns for the local elections in Bar, 0.15%, i.e. 13,725.00 should have been allocated from theOperating Budget projected to amount to 9,150,000.00 for that year.

Due to some technical difficulties, we are not in a situation to publish the amounts that Bar municipal authorities disbursed for financing of election campaign. The said amounts will be encompassed in one of the following researches.

9 Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.


14

Based on both the documents published in the Official Gazette and the Analytical Records wewere provided with by the relevant Bar municipal authority, we can conclude that political parties were disbursed 79,556.00 total for covering the expenses of their regular activities, whichwas 11,944.00 less than the amount projected for the purpose under the Appropriation Ordinance for the 2010 Municipal Budget of Bar.

The final analysis of financing the regular activities of political parties in Bar Municipality willbe done after the Annual Statement of Accounts of the 2010 Budget is approved.



Social Democratic Party 11,044.00Movement for Changes 7,804.00Socialist People's Party 7,264.00

Serb People's Party 7,084.00Bosniak Party 4,204.00

Democratic League 3,124.00People's Party 3,124.00Liberal Party 2,840.00

Democratic Center 1,704.00People's Serb Party 1,420.00

TOTAL 79,556.00

REGULAR FINANCING

The projected 2010 Budget of Bar Municipality amounted to 24,650,000.00, whereas, according to the formula, the Operating Budget was 9,150,000.00. The projected amount to be allocated to political parties amounted to 91,500.0010 total, which was 1.00% of the 2010Operating Budget.

Upon the Ordinance for the Amendments and Supplements to the Appropriation Ordinance forthe 2010 Municipal Budget of Bar, the Budget was reduced to 16,700,000.00 and the OperatingBudget was reduced to 8,850,000.00 as well, whereas the amount projected for political parties remained the same, i.e. 91,500.0011, which was 1.03% of the Operating Budget.

10 Appropriation Ordinance for the 2010 Municipal Budget of Andrijevica, Official Gazette of Montenegro Municipal OrdinancesNo. 042/0918 dated December 20, 2009.

11 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Bar, OfficialGazette of Montenegro Municipal Ordinances, No.43/103 dated December 31, 2010.

12 Official data obtained on the basis of the Law on the Free Access to Information.

Berane Municipality

15

BeraneMunicipality6.

13 Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.14 More details on the criteria for the allocation of funds may be found in Chapter 25 Analysis of Legislative Framework.

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance, Development and Transport of Berane Municipality based on the DecisionNos. 06401101 and 06401102, both dated February 25, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Berane municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending cumulative amounts for financing of political parties in 2010.



Funding for the expenses of the election campaigns of political parties was regulated under theLaw on Financing of Political Parties.13 Accordingly, for covering the cost of election campaignsfor the local elections in Berane, 0.15%, i.e. 8,615.10 should have been allocated from the Operating Budget projected to amount to 5,743,400.00 for that year. According to the data underthe Analytical Records provided by Berane Municipality, for covering the expenses of the election campaigns for the election of councilors 8,184.36 were allocated.

The analysis of the received documents has shown that the distribution of those funds wereaccording to 20%80% formula.14


16

REGULAR FINANCING

The projected 2010 Budget of Berane Municipality was 7,751,400.00, whereas, according tothe formula, the Operating Budget was 5,743,400.00. The projected amount to be transferredto political parties and associations was 40,000.0016 total, which was 0.69% of the 2010 Operating Budget.

Upon the Ordinance for the Amendments and Supplements to the Appropriation Ordinance forthe 2010 Municipal Budget of Berane, the Budget was reduced to 6,858,070.00 and the Operating Budget was reduced to 5,578,070.00 as well, whereas the amount projected for political parties remained the same, i.e. 40,000.0017, which was 0.71% of the Operating Budget.

Upon comparing the Analytical Records with the documents published in the Official Gazette,we have reached to a conclusion that political parties were disbursed, for covering the cost ofelectoral campaign for the election of councilors, 8,184.36 which was 430.74 less than thelegally prescribed amount.



PARTY 20% 80% TOTALDPS, SDP For European Berane 430,76 3.741,02 4.171,78

Better Berane Better Montenegro 430,76 3.151,06 3.581,82Bosniak Party 430,76 0,00 430,76

TOTAL 1.292,28 6.892,08 8.184,36

PARTY AMOUNT (IN )New Serb Democracy 8.200,00

Peoples Party 6.100,00Socialist Peoples Party 6.000,00Party of Serb Radicals 3.247,02

Democratic Party of Socialists 3.072,15Social Democratic Party 3.000,00Movement for Changes 2.000,00Democratic Serb Party 1.200,00

TOTAL 32.819,17

15 Official data obtained on the basis of the Law on the Free Access to Information.16 Appropriation Ordinance for the 2010 Municipal Budget of Berane, Official Gazette of Montenegro Municipal Ordinances,

No. 003/1044 dated January 21, 2010.17 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Berane,

Official Gazette of Montenegro Municipal Ordinances, No. 041/09014 dated December 22, 2009.18 Official data obtained on the basis of the Law on the Free Access to Information.

Upon comparing the amounts stated under the documents provided to us by Berane municipalauthorities to the amounts stated under the Ordinance for Amendments and Supplements to theAppropriation Ordinance for the 2010 Municipal Budget of Berane, we have reached to a conclusion that political parties in that Municipality were disbursed 7,180.83 less than projected.

The final analysis of the financing of regular party activities in Berane Municipality will be doneafter the Annual Statement of Accounts of the 2010 Budget is approved.

Bijelo Polje Municipality

17

Bijelo PoljeMunicipality7.

The information sources we used are the documents that CDT was provided with by the Secretariat for Finance and Economic Development of Bijelo Polje Municipality based on the LetterNo. 05/1782 dated April 26, 2011 and the official documents published in the Official Gazetteof Montenegro Municipal Ordinances.

The relevant Bijelo Polje municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required data on financing of political parties in 2010.



Funding for the expenses of the election campaign of political parties was regulated under theLaw on Financing of Political Parties.19 Accordingly, for covering the cost of the election campaigns for the local elections in 0.15%, i.e. 8,754.90 should have been allocated from the Operating Budget projected to amount to 5,836,600.00 for that year. According to the data underthe Analytical Records provided by Bijelo Polje Municipality, for covering the expenses of theelection campaigns for the election of councilors 8,777.40 were disbursed.

The analysis of the received documents has shown that the distribution of those funds wereaccording to 20% 80% formula.20

19 Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10.20 More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework.


18

Upon comparing the Analytical Records with the documents published in the Official Gazette,we have concluded that political parties were disbursed, for covering the cost of electoral campaign for the election of councilors, 8,777.40 was disbursed which is in line with Law.

After comparing the amounts stated under the documents provided by Bijelo Polje Municipalitywith the ones stated under the 2010 Budget, we have concluded that political parties in thesaid Municipality were disbursed 3,931.38 less than projected.

The final analysis of the financing of regular party activities in Bijelo Polje Municipality will bedone after the Annual Statement of Accounts of the 2010 Budget is approved.


REGULAR FINANCING

The projected 2010 Budget of Bijelo Polje Municipality was 12,420,000.00, whereas, accordingto the formula, the Operating Budget was 5,836,600.00. The projected amount to be transferred to political parties was 70,000.0022, which was 1.19% of the 2010 Operating Budget.

Upon the Amendments to the Appropriation Ordinance for the 2010 Municipal Budget of BijeloPolje, the Budget was reduced to 9,420,000.00, whereas, according to the formula, the Operating Budget was 5,796,200.00. The projected amount to be transferred to political partieswas 75,423.0023 total, i.e. 1.30% of the 2010 Operating Budget.


PARTY AMOUNT (IN )Democratic Party of Socialists 23.500,00

Socialist Peoples Party 11.000,00Social Democratic Party 8.500,00

New Serb Democracy 8.100,00Movement for Changes 5.700,00

Liberal Party 3.500,00Democratic Serb Party 3.490,00

Community of Muslims and Bosniaks 3.001,62Peoples Party 2.600,00Bosniak Party 2.100,00

Bosniak Democratic Party 0,00TOTAL 71.491,62

21 Official data obtained on the basis of the Law on the Free Access to Information.22 Appropriation Ordinance for the 2010 Municipal Budget of Bijelo Polje , Official Gazette of Montenegro Municipal Ordinances,

No. 003/1017 dated January 21, 2010. 23 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Bijelo Polje,

Official Gazette of Montenegro Municipal Ordinances, 004/113 dated Januaty 24, 2011.24 Official data obtained on the basis of the Law on the Free Access to Information.

PARTY 20% 80% TOTALEuropean Bijelo Polje European Montenegro 351.00 4,250.40 4,601.40

Better Bijelo Polje, Better Montenegro 351.00 2,402.40 2,753.40Bosniak Party 351.00 369.60 720.60

Party of Serb Populists Serbian Club 351.00 0.00 351.00Independent Citizens Group 351.00 0.00 351.00

TOTAL 1,755.00 7,022.40 8,777.40

Budva Municipality

19

REGULAR FINANCING

The projected 2010 Budget of Budva Municipality was 61,573,000.00, whereas, according tothe formula, the Operating Budget was 43,324,000.00. The projected amount to be transferredto political parties was 120,000.0025 total, which was 0.27% of the 2010 Operating Budget,i.e. far below the legally prescribed minimum.

Upon Amendments and Supplements, the 2010 Budget of Budva Municipality was reduced to48,750,000.00 , whereas, according to the formula, the Operating Budget was 30,136,340.00.Ordinance for Amendments and Supplements to the Budget of Budva Municipality projected20,000.0026 total for the financing of the regular activities of political parties holding seats inBudva Municipal Council.

The Decision communicated by the relevant Budva municipal authority states that betweenJanuary 01 and December 31, 2010 and for the purpose of financing of regular activities of political parties holding seats in Budva Municipal Council, Municipal Budget disbursed: 500.00 to Movement for Changes 3,000.00 to New Serb Democracy.

The foregoing documents do not encompass any piece of information concerning disbursements to other political parties.

The amount of 3,500.00, which is referred to under the Decision, was considerably lower thatthat projected under the Appropriation Ordinance for the Budget of Budva Municipality.

25 Appropriation Ordinance for the 2010 Budget of Budva Municipality, Web Site of Budva Municipality, www. opstinabudva.com.26 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Budget of Budva Municipality, Of

ficial Gazette of Budva Municipality, No. 001/1133 dated January 12., 2011.

BudvaMunicipality8.

The information sources we used are the documents that CDT was provided with by the Secretariat for Economy and Finance of Budva Municipality, based on Decision No. 04466/2 datedFebruary 23, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Budva municipal authority responded to the Request for the Free Access to Information within the legally prescribed deadline.


20

The scanned Decision made by the Secretariat for Economy and Finance ofBudva Municipality as of February 23, 2011

Between January the 1st and December the31st 2010, for funding the regular activitiesof political parties holding their seats inMunicipal Council of Budva, the municipalbudget disbursed: 500.00 to Movement for Changes 3,000.00 to New Serb Democracy

Cetinje, Historical Capital

21

Cetinje,Historical Capital9.

The information sources we used are the documents that CDT was provided with by the Secretariatfor Economy, Development and Finance of Cetinje Historical Capital, based on the Decisions Nos.04061/11801/1, 04061/11801/2 and 04061/11801/2/1 dated February 23, 2011, as wellas the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Cetinje municipal authority responded to the CDTs Request for the Free Access toInformation within the legally prescribed deadline.


Results of the Election of Councilors February 7, 2010

Funding for the expenses of the electoral campaigns of political parties was regulated under theLaw on Financing of Political Parties.27 Accordingly, for covering the cost of the election campaigns for the local elections in Cetinje Historical Capital, 0.15%, i.e. 9,021.00 should have beenallocated from the Operating Budget projected to amount to 6,014,000.00 for that year. According to the data forwarded by Cetinje Historical Capital concerning covering the cost of thecampaigns for election of councilors, the confirmed lists of candidates were disbursed 1,568.00.As for financing of political parties with seats won, the foregoing Decision states that the Budgetof Cetinje Historical Capital did not make, after the election of February 07, 2010, any disbursement for covering the expenses of election campaigns pursuant to the Law on Financing of Political Parties to any electoral list with seats won in the Council of Cetinje Historical Capital.



22

According to the data obtained from the Analytical Records provided by Cetinje Historical Capital, we have concluded that political parties were disbursed, for covering the expenses of election campaigns for the election of councilors, 1,568.00 which was 7,453.00 less than thelegally prescribed amount.


PARTY 20% 80% TOTALDemocratic Party of Socialists 392.00 0.00 392.00

Social Democratic Party 392.00 0.00 392.00Socialist Peoples Party 392.00 0.00 392.00

Coalition Liberal Party and Citizens Group 392.00 0.00 392.00TOTAL 1.568.00 0.00 1,568.00

The scanned Decision made by the Secretariat for Economy, Development and Finance,of Cetinje, Historical Capital as of February 23, 2011


After acting upon the Request,the said authority has concluded that the Budget of Historical Capital did not dis burse,after the elections held on February 07, 2010, any funds forcovering the cost of electioncampaign pursuant to the provisions of the Law on Financingof Political Parties (OfficialGazette of Montenegro, Nos.49/08 and 49/10) to any of theelectoral lists with seats won inthe Council of Cetinje HistoricalCapital.

Cetinje, Historical Capital

23

REGULAR FINANCING

The projected 2010 Budget of Cetinje Historical Capital amounted to 6,300,000.00, whereas,according to the formula, the Operating Budget was 6,014,000.00. The projected amount tobe transferred to political parties, factions and associations was 40,000.00 total, which was0.66% of the 2010 Operating Budget.

The documents provided by Cetinje Historical Capital have revealed that Cetinje Historical Capital did not make a disbursement to political parties holding seats in the Municipal Council and,thereby, it did not obey the legal framework.

The scanned Decision made by the Secretariat for Economy, Development and Finance,of Cetinje, Historical Capital as of February 23, 2011

29 Appropriation Ordinance for the 2010 Municipal Budget of Cetinje, Official Gazette of Montenegro Municipal OrdinancesNo. 013/0910 dated April 13, 2009.

After acting upon the Request,the said authority has foundthat between January the 1stand December 31st, 2010, thebudget of Historical Capital didnot disburse any funds for financing the regular activitiesof political parties holdingseats on the Council to any ofthe parties holding seats on theCouncil of Cetinje HistoricalCapital, except for the previousyears outstanding amounts;consequently, we do not havethe required information.


24

The information sources we used are the documents that CDT was provided with by the Secretariatfor Finance and Economy of Danilovgrad Municipality, based on the Decisions No. 030323479/1,03323482/1 dated February 25, 2011 and the Letters Nos. 030323479/2 and 030323482/2dated March 04, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Danilovgrad municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on financingof political parties in 2010.

DanilovgradMunicipality10.



Funding for the expenses of the electoral campaigns of political parties was regulated underthe Law on Financing of Political Parties.30 Accordingly, for covering the cost of election campaigns for the local elections in Danilovgrad, 0.15%, i.e. 5,575.87 should have been allocatedfrom the Municipal Operating Budget projected to amount to 3,717,250.0077 for that year.According to the Analytical Records provided by Danilovgrad Municipality, for covering the expenses of the election campaigns for the election of councilors 5,575.86 were disbursed which is 0.15% of the Operating Budget and is in line with the Law.

After analysis of the received documents, we have found that the allocation of those funds wasdone according to 20%80% formula.31


Danilovgrad Municipality

25

REGULAR FINANCING

The projected 2010 Budget of Danilovgrad Municipality amounted to 4,950.000.00, whereas, according to the formula, the Operating Budget was 3,717,250.00. The projected amount to be transferred to political parties was 47,900.0033 total, i.e. 1.28% of the 2010 Operating Budget whichis more then the legally prescribed maximum.

Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Danilovgrad provided for to reduce the projected Budget to 2,980,000.00 and theOperating Budget to 2,634.300.0034. The funds projected to be transferred for regular activities ofpolitical parties amounted to 45,400.00, i.e. 1.72% of the 2010 Operating Budget.


PARTY 20% 80% TOTALCoalition For European Danilovgrad 371.72 2,568.30 2,940.02

Coalition Better Danilovgrad Better Montenegro 371.72 1,892.40 2,264.12Citizens Group Give Us Back Danilovgrad 371.72 0.00 371.72

TOTAL 1,115.16 4,460.70 5,575.86



Socialist Peoples Party 6,925.65Socialist Democratic Party 4,640.82

Movement for Changes 4,217.02Democratic Serb Party 2,337.39

Serb Peoples Party 2,336.18New Serb Democracy 1,621.80

Peoples Party 1,562.71Peoples Socialist Party 1,562.71

Miljan Stanii36 886.80Party of Pensioners, Disabled People and Social Justice of Danilovgrad 774.68

Democratic Center 594.16TOTAL 45,655.97

After the analysis of the available documents, we have concluded that Danilovgrad Municipality disbursed to political parties 1.73% of the total Budget funds reduced by the amount of the CapitalBudget, which was 0.73% more than the legally prescribed maximum.

The final analysis of the financing of the regular activities of parties in Danilovgrad Municipality will bedone after the Annual Statement of Accounts of the 2010 Budget of Danilovgrad Municipality is approved.

32 Official data obtained on the basis of the Law on the Free Access to Information.33 Appropriation Ordinance for the 2010 Municipal Budget of Danilovgrad, Official Gazette of Montenegro Municipal Ordinances,

No. 013/102 dated April 08, 2010. 34 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Danilovgrad,

Official Gazette of Montenegro Municipal Ordinances, No. 043/1033 date December 31, 2010.35 Official data obtained on the basis of the Law on the Free Access to Information.36 Councilor that left Serb Peoples Party Club.

The comparison of the Analytical Records and the documents published in the Official Gazette,we have concluded that political parties were disbursed 5,575.86 total, for covering the costof election campaign for the election of councilors which matched the amount prescribed bythe Law for the purpose.


26

The information sources we used are the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

After the lodged appeal, the Chief Administrator of Herceg Novi made the Decision No. 021006045/11 dated on May 24, 2011 to order the Secretary of the Secretariat for Finance and Economy Development to act upon the Appeal we had tabled. However, we have not been provided with therequired pieces of information; consequently, we are now forced to bring an action against HercegNovi Municipality.

Herceg NoviMunicipality11.

REGULAR FINANCING

The 2010 Budget of Herceg Novi Municipality was projected to be 18,508,000.00, whereas, according to the formula, the Operating Budget was 11,280,000.00. The projected amount to be transferred to political parties, factions and associations was 183,000.0037, which was 1.6% of the 2010Operating Budget.

Upon approving the Ordinance for Amendments and Supplements to the Appropriation Ordinancefor the 2010 Municipal Budget of Herceg Novi, the Budget was reduced to 11,237,000.00 and theOperating Budget was reduced to 9,405,400, whereas the amount projected for political partieswas 144,000.0038 total, i.e. 1.53% of the Operating Budget.

37 Appropriation Ordinance for the 2010 Municipal Budget of Herceg Novi, Official Gazette of Montenegro Municipal Ordinances,No. 008/0932 dated March 01, 2009.

38 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Herceg Novi,Official Gazette of Montenegro Municipal Ordinances, No. 040/1060 dated December 14, 2010.

Optina Kolain

27

39 Law on Financing of Political Parties, Official Gazette of Montenegro, No. 49/08, 49/10..

KolainMunicipality12.

The information sources we used are the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

After the lodged appeal, the Chief Administrator of Kolain made the Decision No. 07152/UP3dated on April 14, 2011 to order the Secretary of the Secretariat for Economy and Finance to actupon the Appeal we had tabled. However, we have not been provided with the required pieces of information; consequently, we are now forced to bring an action against Kolain Municipality.



Funding for the expenses of the electoral campaigns of political parties was regulated under the Lawon Financing of Political Parties.39 Accordingly, for covering the cost of election campaigns for thelocal elections in Kolain, 0.15%, i.e. 6,751.58 should have been allocated from the Municipal Operating Budget projected to amount to 4,501,053 for that year.


28

The projected Budget of Kolain Municipality amounted to 5,351,000.00, whereas, according tothe formula, the Operating Budget was 4,501,053. The projected amount to be allocated for the activities of political parties and councilors was 45,000.0040 total, i.e. 1.00% of the 2010 OperatingBudget.

Upon Amendments and Supplements, the 2010 Budget of Kolain Municipality was reduced to2,984,453.00, whereas, according to the formula, the Operating Budget was 2,779,453.00. Theprojected amount to be allocated for the activities of political parties and councilors amounted to27,672.0041, i.e. 1.00% of the 2010 Operating Budget.

REGULAR FINANCING

40 Appropriation Ordinance for the 2010 Municipal Budget of Kolain, Official Gazette of Montenegro Municipal Ordinances,No. 003/1082 dated January 21, 2010.

41 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Kolain,Official Gazette of Montenegro Municipal Ordinances, No. 004/11106 dated January 24, 2011.

Kotor Municipality

29

KotorMunicipality13.

The information sources we used are the documents that CDT was provided with by the Secretariatfor Finance and Economy of Kotor Municipality, based on the Decision No. UP040117/11 datedMarch 17, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Kotor municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on the financing to politicalparties in 2010.

The projected 2010 Budget of Kotor Municipality was 20,394,442.00, whereas, according to theformula, the Operating Budget was 6,813,442.00. The projected amount to be transferred to political parties, factions and associations was 100,000.0042, i.e. 1.46% of the 2010 Operating Budget.

Upon Amendments and Supplements, the 2010 Budget of Kotor Municipality was reduced to7,952,674.00, whereas, according to the formula, the Operating Budget was 6,449,874.00. Theprojected amount to be transferred to political parties, factions and associations was 70,000.0043

total, i.e. 1.08% of the 2010 Operating Budget.

REGULAR FINANCING



Socialist Peoples Party 8,664.03Social Democratic Party 5,239.20Democratic Serb party 4,628.40Croatian Civic Initiative 2,314.20Movement for Changes 2,314.20

Peoples Party 2,314.20Serb Peoples Party 2,082.78

Liberal Party 1,888.35Ljubo Boovi45 1,023.75

TOTAL 48,700.47

42 Appropriation Ordinance for the 2010 Municipal Budget of Kotor, Official Gazette of Montenegro Municipal Ordinances,No. 004/105 dated January 26, 2010.

43 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Kotor,Official Gazette of Montenegro Municipal Ordinances, No. 041/104 dated December 21, 2010.

44 Official data obtained on the basis of the Law on the Free Access to Information.45 Councilor of Citizens` List.


30

Besides, the provided documents showing the funds intended for political parties, factions and associations have revealed the payments into the following accounts: Association of Veterans, NGO 2.500,00 Veterans Organization 500,00 Veljko Uskokovi 377,67 CKB 262,5046

After the analysis of the documents published in the Official Gazette of Montenegro, we have concluded that Kotor Municipality disbursed to political parties 21,299.53 less than projected by theBudget.

The final analysis of the financing of the regular activities of parties in Kotor Municipality will bedone after the Annual Statement of Accounts of the 2010 Budget of is approved.


Mojkovac Municipality

31

MojkovacMunicipality14.

The projected 2010 Budget of Mojkovac Municipality amounted to 2,878,849.41, whereas, accordingto the formula, the Operating Budget was 2,019,849.41. The projected amount to be transferred topolitical parties, factions and associations was 17,000.0047 total, i.e. 0.84% of the 2010 OperatingBudget. Besides, the Budget projected the funds to cover the rent for the offices for councilor clubsin the amount to 4,800.00.

Upon Amendments and Supplements, the 2010 Budget of Mojkovac Municipality was reduced to2,056,627.70, whereas, according to the formula, the Operating Budget was 1,767,554.748. Theprojected amount to be transferred to political parties, factions and associations was 17,000.00total, i.e. 0.96% of the 2010 Operating Budget. Besides, the Budget projected the funds to cover therent for the offices for councilor clubs in the amount to 4,800.00.

REGULAR FINANCING

Table 13: Funds disbursed for regular financing of political parties in 201049



TOTAL 17,061.86

The information sources we used are the documents that CDT was provided with by the Secretariatfor Finance and Economic Development of Mojkovac Municipality, based on the Decision No. 08220dated February 25, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Mojkovac municipal authority allowed and ensured CDT, within the legally prescribeddeadline, the access to the required information by sending the accurate data on the financing topolitical parties in 2010.

47 Appropriation Ordinance for the 2010 Municipal Budget of Mojkovac, Official Gazette of Montenegro Municipal OrdinancesNo. 014/1094 dated April 15, 2010.

48 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Mojkovac,Official Gazette of Montenegro Municipal Ordinances No. 005/1132 dated January 28, 2011.


Financing for regular activities of political parties in Mojkovac Municipality in 2010 was completedwithin the legally prescribed deadline

The final analysis of the financing of the regular activities of parties in Mojkovac Municipality will bedone after the Annual Statement of Accounts of the 2010 Budget is approved.


32

NikiMunicipality15.

50 Appropriation Ordinance for the 2010 Municipal Budget of Niki, Official Gazette of Montenegro Municipal OrdinancesNo. 042/0977 dated December 29, 2009.

51 Ordinance for Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Niki,Official Gazette of Montenegro Municipal Ordinances No. 043/1081 dated December 31, 2010.


The information sources we used are the documents that CDT was provided with by the Secretariatfor Economy and Finance, based on the Decision No. 06402/56 dated February 21, 2011, as wellas the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Niki municipal authority allowed and ensured CDT, within the legally prescribeddeadline, the access to the required information by sending the accurate data on the financing topolitical parties in 2010.

REGULAR FINANCING

The projected 2010 Municipal Budget of Niki amounted to 30,660,800.00, whereas, according tothe formula, the Operating Budget was 28,249,263.00. Funding for the regular activities of the partiesholding seats in the Council amounted to 78,440.0050, i.e. 0.27% of the 2010 Operating Budget.

Upon Amendments and Supplements, the 2010 Municipal Budget of Niki was reduced to24,998,735.43, whereas, according to the formula, the Operating Budget was 22,602,665.43. Funding for the regular activities of the parties holding seats in the Council was projected to be 79,000.0051,i.e. 0.35% of the 2010 Operating Budget.


Upon comparing the documents provided with the data published in the Official Gazette, we haveconcluded that the relevant Niki municipal authority disbursed, for the regular activities of theparties holding seat in the Council, 33,369.45 less than projected under the Budget.

The final analysis of the financing of the regular activities of political parties in Niki Municipalitywill be done after the Annual Statement of Accounts of the 2010 Budget is approved.



New Serb Democracy 4,582.97Movement for Changes 2,674.95

Democratic Center of Montenegro Liberal party 2,101.74Peoples Party 1,720.94

Democratic Serb Party 1,720.94TOTAL 45,630.55

33

PlavMunicipality16.

Plav Municipality

The information sources we used are the documents that CDT was provided with by the Secretariatfor Economy, Development and Finance of Plav Municipality, based on the Decision No. 03339 datedMarch 28, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Plav municipal authority allowed and ensured CDT, within the legally prescribed deadline, the access to the required information by sending the accurate data on the financing to politicalparties in 2010.



Funding for the expenses of the electoral campaigns of political parties was regulated under the Lawon Financing of Political Parties.53 Accordingly, for covering the cost of election campaigns for thelocal elections in Plav, 0.15%, i.e. 2,807.17 should have been allocated from the Municipal OperatingBudget projected to amount to 1,871,448.00 for that year. According to the data under the Analytical Records provided by relevant Plav municipal authority, for covering the expenses of the electioncampaigns for the election of councilors 8,282.00 were disbursed, i.e. 0.44% of the OperatingBudget.



34

PARTY 20% 80% TOTALSocial Democratic Party 40.00 2,290.00 2,330,00

Bosniak Party 80.00 2,012.00 2,092,00Socialist Peoples Party 80.00 987.00 1,067.00

Party for Gusinje 80.00 823.00 903.00Democratic Party of Socialists 40.00 826.00 866.00

Democratic Alliance in Montenegro 0.00 537.00 537.00Serb Peoples Party 0.00 223.00 223.00

FORCA 0.00 184.00 184.00Democratic Union of Albanians 80.00 0.00 80.00

TOTAL 400.00 7,882.00 8,282.00

Table 15: The amount of funds allocated to parties for the 2010 local elections 201054

Analyzing the data contained in the Analytical Records provided by Plav municipal authority hasnot revealed which criterions were followed for the distribution of funds to political parties for funding their election campaigns, whereas 5,474.83 were disbursed more than the amount providedfor by the Law.

REGULAR FINANCING



Democratic Union of Albanians 1,000.00Socialist Peoples Party 300.00

Democratic Union of Albanians 80.00FORCA 80.00TOTAL 2,760.00

After the analysis of the provided documents and the data published in the Official Gazette Municipal Ordinances, we have concluded that political parties in Plav Municipality were disbursed9,240.00 less than projected under the Budget.

The final analysis of the financing of the regular activities of parties in Plav Municipality will be doneafter the Annual Statement of Accounts of the 2010 Budget is approved.

54 Official data obtained on the basis of the Law on the Free Access to Information.55 Appropriation Ordinance for the 2010 Municipal Budget of Plav, Official Gazette of Montenegro Municipal Ordinances No.

015/1020 dated April 22, 2010. 56 Official data obtained on the basis of the Law on the Free Access to Information.

The projected 2010 Budget of Plav Municipality amounted to 2,812,448.00, whereas, according tothe formula, the Operating Budget was 1,871,448.00. The projected amount to be transferred topolitical parties was 12,000.0055 total, i.e. 0.64% of the 2010 Operating Budget.

Pluine Municipality

35

PluineMunicipality17.

The information sources we used are the documents that CDT was provided with by the Secretariat forLocal Government of Pluine Municipality, based on the Decision No. 04381/1 dated February 21, 2011;Decision No. 042535 dated December 30, 2010; Decision No. 041722 dated September 17, 2010; Decision No. 04557 dated March 30, 2010 and the Letter No. 4407 dated February 25, 2011, as well asthe official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Pluine municipal authority allowed and ensured CDT, within the legally prescribed deadline,the access to the required information by sending the accurate data on financing of political parties in 2010.



Funding for the expenses of the electoral campaigns of political parties was regulated under the Lawon Financing of Political Parties.57 Accordingly, for covering the cost of election campaigns for thelocal elections in Pluine, 0.15%, i.e. 3,305.70 should have been allocated from the Municipal Operating Budget projected to amount to 2,203,800.00. for that year.

According to the Analytical Records provided by the relevant Pluine municipal authority, for covering the expenses of the election campaigns for the election of councilors 3,305.70 were disbursed,i.e. 0.15% of the Operating Budget which is in line with the Law.

After analysis of the received documents, we have found that the allocation of those funds was doneaccording to 20%80% formula.58



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PARTY 20% 80% TOTALSocialist Peoples Party 132.23 1,498.60 1,630.83

Coalition for European Pluine 132.23 528.90 661.13Coalition for Better Piva 132.23 528.90 661.13

Yugoslav Communist Party of Montenegro (JKPCG), Mirko, Vukovi

132.23 88.15 220.30

Party of Serb Radicals 132.23 0.00 132.23TOTAL 661.15 2,644.55 3,305.70


The projected 2010 Municipal Budget of Pluine amounted to 12,383,800.00, whereas, according tothe formula, the Operating Budget was 2,203,800.00. The projected amount to be transferred to political parties, factions and associations was 35,000.0060 total, i.e. 1.58% of the 2010 Operating Budget.

Upon the Ordinance for the 2010 Budget Plan Revision of Pluine Municipality, the Budget was reduced to 3,403,000.00 and the Operating budget was reduced to 1,599,000.00. The amount projected for political parties, factions and associations was 52,000.0061 total, i.e. 3.25% of the 2010Operating Budget.

REGULAR FINANCING

PARTY AMOUNT (IN )JANUARY - MAY 2010

Serb List Andrija Mandi 1,455.70Citizens Group By the List for Piva Radenko Deno Damjanovi 952.10

Democratic Serb Party 700.30Peoples Party 448.55

League of Communists of Yugoslavia Montenegro Pluine (SKJ RCG Pluine) Mirko Vukovi

448.55

JUNE - DECEMBER 2010Socialist Peoples Party 9,892.25

Coalition for European Pluine DPS, SDP 4,626.69Coalition Together for Better Piva 2,667.49

YCPM (JKPCG) Mirko, Vukovi 846.37TOTAL 22,038.00

The amount reached after addition of disbursed amounts as stated under the Analytical Records was22,038.00, i.e. 1.00% of the 2010 Operating Budget and was in line with the Law; however, the sumdid not match the amounts intended for political parties, factions and associations as stated underthe Appropriation Ordinance for the 2010 Budget and the Ordinance for the Revision of the 2010Municipal Budget Pan of Pluine respectively.

The final analysis of financing the regular activities of parties in Pluine Municipality will be doneafter the Annual Statement of Accounts of the 2010 Budget is approved.


59 Official data obtained on the basis of the Law on the Free Access to Information.60 Appropriation Ordinance for the 2010 Municipal Budget of Pluine, Official Gazette of Montenegro Municipal Ordinances

No. 002/1013 dated January 14, 2010.61 Ordinance for the Revision of the 2010 Municipal Budget Plan of Pluine, Official Gazette of Montenegro Municipal Ordinances

No. 001/11166 dated January 12, 2011. 62 Official data obtained on the basis of the Law on the Free Access to Information.

Pljevlja Municipality

37

18. PljevljaMunicipalityThe information sources we used are the documents that CDT was provided with by the Secretariatfor Finance of Pljevlja Municipality, based on the Decisions Nos. 0603286 and 0603287 datedFebruary 24, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.

The relevant Pljevlja municipal authority allowed and ensured CDT, within the legally prescribeddeadline, the access to the required information by sending cumulative amounts for financing of political parties in 2010.



Funding for the expenses of the election campaigns of political parties was regulated under the Lawon Financing of Political Parties.63 Accordingly, for covering the cost of election campaigns for thelocal elections in Pljevlja Municipality, 0.15%, i.e. 13,475.03 should have been allocated from theOperating Budget projected to amount to 8,983,354.00 for that year.

According to the data under the Analytical Records provided by the relevant Pljevlja municipal authority, for covering the expenses of the election campaigns for the election of councilors 13,475.02were disbursed.



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The analysis of the received documents has shown that the distribution of those funds was accordingto 20% 80% formula.64


PARTY 20% 80% TOTAL

Coalition For European Pljevlja Dr Filip Vukovi 898.34 5,236.00 2,940.02

Coalition Better Pljevlja Better Montenegro 898.34 5,544.00 2,264.12

Serb radical party, dr. Vojislav eelj 898.34 0.00 898.34

TOTAL 2,695.02 10,780.00 13,475.02

The projected 2010 Municipal Budget of Pljevlja was 12,679,015.00, whereas, according to the formula, the Operating Budget was 8,983,354.00. The projected amount to be transferred to politicalparties, factions and associations was 101,827.0066, i.e. 1.13% of the 2010 Operating Budget.

Upon the Amendments and Supplements to the Appropriation Ordinance for the 2010 MunicipalBudget of Pljevlja, the Budget was reduced to 9,618,320.00, the Operating Budget was reduced to7,113,320.00, whereas the amount projected for political parties and associations was increasedto 171,897.9167, i.e. to 2.42% of the Operating Budget.

REGULAR FINANCING


PARTY AMOUNT (IN )New Serb Democracy 13,722.68

Democratic Party of Socialists 8,370.96Movement for Changes 8,138.52Socialist Peoples Party 5,663.85Democratic Serb Party 1,736.69

TOTAL 37,659.70

Upon comparing the Analytical Records and the documents provided by relevant Pljevlja municipalauthority, we have concluded that political parties in that Municipality were disbursed 37,659.70in 2010, i.e. 0.53% of the Operating Budget which is considerably lower than the projected amount.

The final analysis of the financing of regular political party activities in Pljevlja Municipality will bedone after the Annual Statement of Accounts of the 2010 Budget is approved.

64 More details on the criteria for the allocation of funds may be found in Chapter 25 Analysis of Legislative Framework65 Official data obtained on the basis of the Law on the Free Access to Information.66 OAppropriation Ordinance for the 2010 Municipal Budget of Pljevlja, Official Gazette of Montenegro Municipal Ordinances,

No. 015/1083 dated April 22, 2010.67 Amendments and Supplements to the Appropriation Ordinance for the 2010 Municipal Budget of Pljevlja, Official Gazette

of Montenegro Municipal Ordinances, No.005/11116 dated January 28, 2011. 68 Official data obtained on the basis of the Law on the Free Access to Information.

The comparison of the Analytical Records and the documents published in the Official Gazette,we have concluded that political parties were disbursed 13,475.02 total, for covering the costof election campaign for the election of councilors which matched the amount prescribed bythe Law for the purpose.

Podgorica, Administrative Capital

39

Podgorica,Administrative Capital19.

The information sources we used are the documents that CDT was provided with by the Secretariatfor Finance of Podgorica, Administrative Capital, based on the Decisions Nos. Up:402/111255/1and Up:402/111256/1 dated February 24, 2011 and the Letters Nos. 05402/111255/2 and05402/111256/2 dated March 02, 2011, as well as the official documents published in the Official Gazette of Montenegro Municipal Ordinances.


Election of Councilors of the Town Council ofthe Podgorica Administrative Capital May 23, 2010


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Election of councilors to the Town District Council of Golubovci was held on May 23, 2010, and repeated on October 17, 2010.

Election of councilors to the Town District Council of Tuzi was held on May 23, 2010

Funding for the expenses of the election campaigns of political parties was regulated under the Lawon Financing of Political Parties.69 Accordingly, for covering the cost of election campaigns for thelocal elections in Podgorica, 0.15%, i.e. 58,503.00 should have been allocated from the MunicipalOperating Budget projected to amount to 39,002,000.00 for that year.

According to the data contained in the Analytical Records provided by the relevant Podgorica municipal authority, for covering the expenses of the election campaigns for the election of councilors58,503.00 were allocated which is 0.15% of the Operating Budget and is in line with the Law.


ELECTIONS OF COUNCILORS GOLUBOVCI AND TUZI

Podgorica, Administrative Capital

41

After analysis of the received documents, we have found that the allocation of those funds was doneaccording to 20%80% formula.70

The funds disbursed to the confirmed electoral lists and parties with seats won in the election heldon May 23, 2010 are given as cumulative for Podgorica Municipality and Town Districts of Tuzi andGolubovci respectively.

PARTY 20% 80% TOTALCoalition For European Podgorica, Golubovci and Tuzi 2,507.25 22,933.18 25,440.43Better Podgorica Better Montenegro Better Malesija 2,507.25 16,848.86 19,356.11SDP Right Choice, prof.Vujica Lazovi, Golubovci, Tuzi 2,507.25 3,276.17 5,783.42

Coalition for Malesija72 1,671.75 3,276.17 4,947.92Gjokaj Muhamed 835.75 468.02 1,303.77

Party of Serb Populist Dobrilo Dedei 835.75 0.00 835.75Fatherland Serbian Party 835.75 0.00 835.75

UKUPNO 11,700.75 46,802.40 58,503.15


PARTY 20% 80% TOTALFor European Golubovci 835.75 5,616.28 6,452.03

Better Podgorica Better Montenegro Better Malesija 835.75 4,680.24 5,515.99

TOTAL 1,671.50 10,296.52 11,968.02

Table 22: The funds disbursed for the repeated election inTown District of Golubovci, held on October 17, 201073

70 More details on the criteria for the allocation of funds may be found in Chapter 25, Analysis of Legislative Framework. 71 Official data obtained on the basis of the Law on the Free Access to Information. 72 List for Tuzi. 73 Official data obtained on the basis of the Law on the Free Access to Information. 74 Appropriation Ordinance for the 2010 Municipal Budget of Podgorica, Administrative Capital, Offic

financing to political parties from private and budget funds in 2010

Documents

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mojkovac municipality