The financial-banking system of the Republic of Moldova remains exposed to increased risks of fraud. Independent experts signaled attempts by the authorities to legalize embezzled funds, Transparency International Moldova and the Institute for Development and Social Initiative “Viitorul” say in a report on the monitoring of developments in the sector during December 2016-May 2017.
In a news conference at IPN on July 13, ex-minister of finance Veaceslav Negruta, who is one of the report authors, said the memorandum signed by Moldova with the International Monetary Fund in November 2016 includes a series of recommendations that the Moldovan authorities should respect. Some of the set terms are not met, while the non-fulfillment of the undertaken commitments could endanger the dialogue with the IMF at the next meetings.
Veaceslav Negruta noted that the authorities were obliged to carry out an audit at each of the commercial banks, centering on shareholder transparency, observance of the prudential lending norms, etc. The dialogue with the IMF could be also affected by the non-fulfillment of the commitment to ensure transparency in the case of the holdings that were put up for sale: 41% at Victoriabank, 42% at Moldova Agroindbank and 64% la Moldinconbank. “These shareholdings were blocked by the decision of the National Bank of Moldova. Transparency ensuring is a problem, probably the biggest one, and this can create big difficulties in the dialogue with the IMF,” stated Veaceslav Negruta.
Transparency International Moldova president Lilia Carasciuc said the government informed the development partners that the commitments in the financial-banking sector were fulfilled, but civil society ascertained a different situation. At the insistence of civil society and the development partners, the draft law on capital legalization and fiscal stimulation was withdrawn as this favored the legalization of ill-gotten gains. Currently, the legalization of embezzled funds could take place if 40% of the state securities of the National Bank’s portfolio were purchased by investors with dishonestly obtained money, which could be later used to get financial resources from the state.
“The burden would be borne by society again. The danger of fraud in the banking system persists. A similar risk exists in the insurance system, which is insufficiently transparent and is not in the focus of the state bodies. The financial sector develops absolutely non-proportionally to the current realities. We risk becoming a state that causes destabilization not only here, but also all over the world,” stated Lilia Carasciuc.
The report on the monitoring of developments in the sector during December 2016-May 2017 was compiled by Transparency International Moldova and “Viitorul” within the project “A Case Based Approach to Fighting Grand Corruption”.
