Labour cost: steepest and largest increase in the EU. And mostly concentrated on non-business sector
Romania recorded in the first quarter of 2018 the highest labour cost increase among all EU member states, according to data released by Eurostat. With… Mai mult›
Company financing: Firms’ aversion to credit – at high levels. Most favourite banking product – account overdraft
The rise in interest rates and fees is becoming increasingly worrying for companies and maintains companies’ aversion to banking lending at high levels, according to… Mai mult›
Government is hardly competing with private economy on banks’ money. Which are satisfied: less work, lower risks
The volume of government credit has increased about 10 times over the last 10 years, and the share in total banking investment in Romania… Mai mult›
Government debt service for 2019 will surely exceed the 2018 level, according to the projection made by the Ministry of Finance based on the debt… Mai mult›
Deloitte – M&A market: Negotiation power of sellers in Romania has diminished compared to 2008. Opportunities from that moment – unrepeatable
The balance of negotiation powers in the Romanian M&A market has reversed over the past 10 years, as it became a buyer’s market, according to… Mai mult›
“Everything in One Hand” project continues: Law which pushes Court of Auditors beneath Administration’s feet – adopted
de Razvan Diaconu , 9.7.2018
The Senate adopted on Thursday the draft amending Law 94/1992 on the organization and functioning of the Court of Auditors, which contains amendments that could freeze all payments for European funded projects in the current budgetary year – as the authorities in Brussels warned.
Details and especially consequences of this law – HERE-LINK.
As this is the decision-making chamber, the law goes to promulgation.
In the European Commission’s view, some of the approved amendments do not meet international standards and affect the institution’s independence.
In the initiators’ view, though, changes were made precisely to align the law with international auditing standards. Correlation with international regulations is the pretext invoked in the explanatory memorandum of this legislative intervention, but also of other projects harshly criticized by the European institutions. For example, in the case of “reforming” laws on the judiciary.
Interventions on Law 94/1992 undoubtedly have the potential to severely affect the independence of the Court of Auditors in several ways:
- expand president’s attributions (a political appointee, by the Parliament) to the detriment of collective management, through the Court’s plenum
- allow the interference of other institutions in the Court’s activity
- creates loopholes for the heads of public institutions who illegally spent public money
For Romania, the stake of these changes means over EUR 20 billion. For PSD and ALDE, the authors of the dangerous amendments, the stake is the political control of the Court of Auditors, so that local elected representatives and heads of institutions could not be held accountable for an illegal or unnecessary spending of public (national and European) funds.
The draft amendment to Law 94/1992 on the Court of Auditors received a final vote in the Chamber of Deputies on 25 April and received all the opinions of the Senate committees involved in the procedure.
The decision gets concentrated in one hand: expanding the president’s role, to the detriment of the Court of Auditors’ Plenum
The proposed amendments effectively cancel the collective management of the Court of Auditors, as the most important tasks are transferred from the plenum of 18 (independent) audit advisors to the president of the institution (a political figure appointed by the Parliament).
At this moment, the president is Mihai Busuioc (photo), a social-democrat loyal to Liviu Dragnea. Former Secretary-General of the Government, after PSD-ALDE came into power, he was the main pawn used by Liviu Dragnea inside Victoria Palace to stop Sorin Grindeanu and Victor Ponta from taking over the government.
Mihai Busuioc was appointed last year to the Court of Auditors for a nine-year term.
Extended attributions for the president:
- “The organizational structure of the Secretariat General and the attributions of its departments are established by the Plenum of the Court of Auditors,” the current law provides. The amendment voted by deputies adds that these things will be done based on the proposal of the Court of Auditors’ president.
- It is the Court of Auditors’ president who will decide whether he or she notifies prosecutors of irregularities found. The destiny of mayors, heads of institutions, etc. who spent the public money in violation of the law will exclusively depend on the will of a political appointee. Now, Article 33 provides that the notification is made by the head of the department who identified “the acts on which there are indications that they were committed in violation of the law.”
- “The president approves the responsibilities assigned to departments, divisions of the Secretariat General and the president’s apparatus” shall be added to Art. 60.
- A new structure is established that reports to the president – “President’s apparatus” (Article 8). It is a distinct structure from the secretariat general and the president’s office and will check all reports before they are transmitted.
Court of Auditors is no longer the ultimate authority to certify data from audited execution accounts
The draft approved in the Chamber of Deputies repealed art. 31 of the current law, which now provides:
- The Court of Auditors shall certify the accuracy and veracity of the data in the audited execution accounts.
- No other authority can decide on the data registered in the execution accounts, except on a provisional basis.
This means that the Court of Auditors is the decisive authority in the matter of discharge – the granting of a certificate of compliance for the certification of the execution of the accounts at a public authority.By repealing the article, any entity may decide on the certification of public institutions’ accounts and the Court of Auditors is compelled to accept the report of the auditor paid by the audited entity.
Measures to protect officials with problems of a criminal nature
- The Court of Auditors’ obligation to request “the suspension from office, according to the law, of persons accused of committing acts that cause significant damages or serious financial deviations, identified following the controls or audits carried out, until final decisions are issued in the causes in which these persons are involved “(art. 45).
- 54, which required the suspension from office of the Court of Auditors’ members and external public auditors sent to trial. The draft adopted by the Chamber of Deputies’ members provides for the suspension from office only when a first conviction has been decided.
Lăsați un comentariu
Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability
Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult›
Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult›
AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy
The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult›
Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%
The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult›
The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult›
Liviu Dragnea announces a dictatorship through ordinances: "Correct procedural approach through Parliament is wrong, from the law on investment fund to laws on the judiciary. We will be firmer and more radical"
"We decided to be much firmer and more radical. My way of having a correct procedural approach in the Parliament proved wrong. In the Parliament,… Mai mult›
Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult›
The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult›
C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's
Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult›
The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult›
Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult›
RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years
Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult›
Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult›
Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network
The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult›