On December 1, the Kosova Democratic Institute (KDI) hosted the conference “Transparent Wallets: Advancing Political Financing,” marking the initiation of the “Zero Corruption” campaign. The event brought together representatives from institutions and non-governmental organizations from Germany, the Czech Republic, North Macedonia, Albania, and Serbia, as well as representatives from parliamentary political parties in Kosovo, local civil society organizations, media, and diplomatic missions.

In the opening remarks, Ismet Kryeziu, the executive director of KDI, highlighted that despite positive changes in the law on the financing of political entities, certain aspects such as funding for non-parliamentary political parties, financing and self-financing of candidates, and gender-based budgeting within political parties remained unregulated. Kryeziu also touched upon the issue of donors for political entities and their influence on political parties’ decision-making, encompassing the laws, rules, and decisions they might pursue when in government.

Conversely, Marta Onorato, Resident Program Director for Kosovo at the International Republican Institute (IRI), pointed out the low trust in political parties in Kosovo, affecting citizen participation in politics. According to IRI surveys, 55% of citizens lack trust in political entities, aligning with the voter turnout in the parliamentary elections of 2021, where 51.2% of eligible citizens abstained from participating.

Eugen Cakolli of KDI presented a discussion paper on the current state-of-play on the transparency and financial accountability of political entities in Kosova. Cakolli underscored that over a year since the implementation of the new law on political entity financing, the status quo persists regarding the resources of institutions responsible for financial control (namely the Office), the consolidation of secondary legislation, and the transparency and financial accountability of political entities. Additionally, there was a highlighted necessity for legal regulation concerning candidate financing, online campaigns, and third-party campaigns.

FIRST PANEL DISCUSSION

The first discussion panel featured representatives from parliamentary political parties, including deputy Eliza Hoxha from PDK, Armend Zemaj from LDK, and Besnik Tahiri from AAK. They provided insights into the transparency and accountability of political party finances, as well as the impact of finances on their election and role as MPs.

MP Eliza Hoxha emphasized the common practice of self-financed candidate campaigns. She highlighted the need for clearer legal regulations regarding financing methods and expense categorization. According to Hoxha, such regulations would contribute not only to more transparent financing but also to a more substantial political representation in institutions.

MP Armend Zemaj acknowledged Kosovo’s progress in political entity financing. He suggested placing more emphasis on external financing, which, despite being prohibited, still finds space during campaigns, pre-campaigns, and individual MP engagement. Zemaj also expressed concerns about ‘online’ campaigns, noting that their expenses, especially by the ruling party, are not accurately reported.

On the other hand, MP Besnik Tahiri proposed waiting to test the law’s implementation in practice through at least one election process before considering possible adjustments. He emphasized the significance of money in running a campaign and gaining votes, calling for categorizations of political party expenses in staff employment, branch support, and various projects.

The discussion among MPs also covered topics such as spending limitations during campaigns, third-party campaigns, expenses for political advertising on social networks, and more.

SECOND DISCUSSION PANEL

The second discussion panel, consisting of representatives from Transparency International’s partner organizations in Germany, the Czech Republic, Albania, and Serbia, along with the Director of the Office for Financial Control in Kosova, delved into international practices regarding the monitoring and financial control of political entities.

Besnik Buzhala, Director of the Office for Registration, Certification, and Financial Control of Political Entities, began by outlining the role and challenges faced by the Office in conducting financial control. Buzhala presented key findings from the audit of annual financial reports for 2022, revealing that the majority of parliamentary parties had generally acceptable reports, with one exception that refused cooperation with auditors. Additionally, parties encountered issues with reporting branches, with nearly half of the political parties failing to declare any expenses for contributions in kind.

Miša Bojovi?, a researcher at Transparency International Serbia, presented financial monitoring and control practices in Serbia. Bojovi? explained that most political parties in Serbia rely on public funding through a percentage allocation of funds. However, delayed fund allocation for campaign financing posed challenges, particularly for smaller parties that struggled to make timely payments for campaign services or products. While external financing is generally prohibited, Serbia allows financing through international political associations.

Iliada Korçari, Executive Director of the Institute for Democracy and Mediation (IDM), highlighted that the Albanian state provides over 3 million euros in funding for political entities, excluding subsidies, which constitute a significant portion of funding. She pointed out the persistent issue of numerous “phantom” parties that are not integral to the political landscape but present significant challenges. The control of contributions in kind was emphasized as an ongoing challenge.

Marek Chromý presented practices at the Czech Republic’s level, as an EU member state. He showcased the open and fully transparent bank statements of over 200 political parties in the Czech Republic, accessible in real-time to the public. Chromý underscored that this approach, while enabling institutional control, also ensures effective oversight by the public and civil society organizations. However, he highlighted the issue of low fines at the EU level as a concern.

THIRD DISCUSSION PANEL

The third discussion panel of the conference focused on “The role of election management bodies in increasing political integrity regarding the financing of political entities,” with the participation of leaders from the central election commissions of Albania, North Macedonia, and Kosova.

Ilirjan Celibashi, the State Commissioner of Elections in Albania, commenced by presenting the regulatory framework for the financing of political entities in Albania. Celibashi highlighted that the law on political parties governs party finances before the election campaign, while finances during the campaign are regulated by the Electoral Code. The legislation in Albania encompasses various sources of finance for political parties, including membership fees, public funds, and non-public funds. Notably, the Central Election Commission of Albania has implemented an electronic financial reporting platform, a unique feature for the region and beyond.

Ditmire Shehu, Vice President of the State Election Commission in North Macedonia, shared experiences emphasizing that fair elections lay the foundations for democracy. She stressed that effective implementation of the electoral process is crucial for providing all parties with open and equal access and playfield in elections. The primary source of funding for political entities in North Macedonia is stated to be the public budget. Shehu noted that North Macedonia stands as the sole country in the Balkans allowing political advertising funded by the state budget.

Kreshnik Radoniqi, Chairman of the Central Election Commission in Kosova, expressed that despite the approval of a new law on the financing of political entities, the internal regulatory framework enabling effective law implementation has not been consolidated. Regarding financial reporting, Kosovo has initiated procedures to establish an electronic platform. Radoniqi also appreciated Kosovo’s adoption of experiences from the Czech Republic, a country with legislation similar to Kosovo’s.

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