Businessmen unofficially pay about 220 mln lei annually for authorities’ social initiatives - expert

At least 220 mln lei are being paid by businessmen as unofficial payments for funding different social initiatives, launched by authorities. In reality, the general sum coming from businesses and state intended for different sponsorships, not stipulated by the legal framework could exceed 450 mln lei, economist Veaceslav Ionita asserts. The statement was made at the conference “Unofficial Taxation: Analysis of private-public relation in Moldova”, held by the Institute for Development and Social Initiates “Viitorul” (IDIS) on Tuesday, February 27. As part of the event, political analyst Igor Munteanu mentioned that the unofficial taxation does not mean corruption, but it generates attitudes and conducts related to corruption at the level of authorities of any rank. As for the business environment, it is believed that the business stability depends on the relation and discretionary treatment from the state, if it satisfies its requests. Usually, the expert says, authorities of different level request money for social infrastructure, ideological, politico-electoral projects, but this fact influences largely the state of affairs in Moldova’s economy that becomes unsteady and fragile: the business no longer trusts the day of tomorrow, is pushed to carry double accountancy, because just this way it will be able to regularly pay for certain services. “Unofficial payments are restricting the enormous capacity of the business: the drawing of 10% from a business income reduces by 1/3 its capacity to allocate this money for business development”, expert says. As Munteanu says, usually this money is being raised following some conditions: you can receive a licence, land etc., if you give money for the social projects of the authorities. This thing makes the businessmen to have at least three pockets, prepared not only for charity balls but also for the officials. [“Businessmen must have three pockets at least”] Four in five respondents of a survey conducted by IDIS asserted that in 2006 they were requested by certain public authorities to pay money besides the official taxes stipulated by the fiscal legislation. The money was paid in cash, without any pay receipts. 90% of the surveyors considered that these payments are a burden and an illegal taxation. Most of respondents are sure that they can not escape unpunished if they do not pay the money requested by authorities. Munteanu says that public authorities tend to ignore this phenomenon, asserting that the respective contributions are voluntary charity actions, or, a more recent affirmation –businessmen should have a social responsibility regarding the society. What we name contributions on the part of the business in fact are imposed contributions, because a framework of the private public partnership does not exist in Moldova, while the state authorities take the contributions as being derived from the legal framework, following the Law on Sponsorship and Philanthropy, adopted in 2002. This law only defines the framework intended to regulate sponsoring organisations, but not the sponsorship-related activities, the expert says. “The authorities illegally assumed the mission of philanthropic organisations. The state must not deal with sponsorship, a function that is reserved to the civil society: church, NGOs, charity organisations, professional associations that offer benefits to their members. This is the modern, European and international sponsorship. What occurs today in Moldova is a twisted concept of sponsorship and a fraudulent use of funds”, Munteanu says. As he states, the unofficial payments coming from businessmen for the Memorial Complex “Eternity”, Monument “Badea Mior”, foundations and renovations of the churches, wells, charity balls – are just several examples of fraudulent use of public money. Experts say that there must be transparent rules that would allow fund raising from individuals or businesses. At present, most of money collected from the private sector is not verifiable: The Court of Accounts fails to intervene because it is obliged to check and monitor only the use of State Budget’s funds. Also, IDIS experts say, it is necessary to accelerate a framework that would regulate the public-private relations, separate this framework from philanthropy and charity, while the state must not engage in philanthropic activities and frame long-term policies to solve social problems.