Transparency Croatia: Corruption Can�t Be Eradicated without Regulated Campaign Financing

Transparency International Hrvatska

Transparency International Croatia reacted today to the draft-Law on Financing of Political Parties that entered parliamentary procedure earlier this week. TIC believes that the Law is an important step forward in creation of legal framework for fight against corruption, but that this draft has one great defect � it doesn�t regulate the financing of election campaigns.

The poll commissioned by TIC and conducted in early November by �Promocija Plus� agency, shows taht the majority of citizens (53.8 percent) believes that the election campaign opens the field to irregularities in political parties� financing, so that this matter should be regulated as soon as possible, either through a special law or through inclusion of provisions on financing of election propaganda.

Another serious defect in the Law is the lack of prohibition for commercial companies that have outstanding debts and other liabilities to donate to political parties. The citizens share that view. Full 91.5 percent believe that companies that haven�t paid taxes and other liabilities should be prohibited from making donations to election campaigns.

Almost the same percentage of citizens (87.3 percent) doesn�t approve of donations made by state-owned and public enterprises, while slightly more than two thirds believe that foreign companies should be fully prohibited from making donations. The draft-Law proposes such prohibition for commercial companies in which the state is majority owner, while the public debate has lead to conclusion that such prohibition should be valid for companies with 25% of ownership in the hands of the state.

Another defect of the Draft is the lack of obligation to make all donations to a single central bank account of a given political party, thus contributing to easier and simpler control and eliminating any suspicions of illegal actions.

According to the poll, the adoption of regulation on financing of political parties and election campaigns is the main requirement in the fight against corruption and further democratic development of Croatia.