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The Cabinet of Ministers and the "Delicate situation".

The Cabinet of Ministers and the "Delicate situation".

Last week the President promulgated all 11 laws, the responsibility for which was assumed by the government before the Parliament. This issue has been simmering for nearly a month, and this case is unprecedented!

It can be reminded that the Parliament adopts the organic laws - that is, those that are not constitutional or fundamental in the two readings. In the first reading the deputies decide - do we need such this law or not. In the second, even more important reading, the bill is complemented with consideration of all views, clarifies the details of the bill and specifies the numbers and position to make the most precise clarity for the performers. During the parliamentary debate in the first reading the final document in the second reading can be very different from the original version.

Most of the 11 bills were refined and incorporated for the approval in the second reading in the agenda of the meetings of the Parliament even with the specified dates of the meetings. The Parliament at that time was still working and the members were not on leave.

Why the government decided to take the responsibility for the adoption of these laws? Regarding the legality of this decision of the Cabinet relevant issues can be heard in the Constitutional court.

The procedure, when the government adopts the laws stipulated by the legislation when the Parliament is on vacation and without those or other laws, the government can't do its job. Then, using the given mandate, the government assumes responsibility and performs not only the executive but also the legislative function.

Today it is already obvious that the increased responsibility, which was taken by the government, related to the fact that a large number of controversial moments these laws prepared to be adopted in the second reading will be hardly approved.

As the Prime Minister said, the main thing was to find a way to adopt these laws - and the way was found. But the most interesting is that the number of bills for the unknown reasons has virtually changed and differs from the options of the first reading. In fact, the government adopted the third variant of a number of laws, and options - which conceptually changed the essence of the previously amendments discussed.

Society and business are bewildered! The talk is about specific cases.

In the previous reports we talked about the bill adopted by the Parliament in the first reading, in particular on the amendments to the law on financial institutions. Those changes that reduce the threshold for buyers of the Bank shares to obtain permission from the National Bank from 5% to 1%; prohibiting banking shares to pledge and increase criminal liability of management in the banks. It can be reminded that a heating debate with the adoption of the law in the first reading and in considering in the second will eliminate most of disadvantages.

According to the the Deputy Chairman Iurie Filip : "All discussions and quite intense negotiations on the division of powers between the NCFM and the NBM, which were previously carried out with international partners and Parliament over the fact that the government adopted amendments to the Law on the capital market, are unexpected for the market participants".

According to the law, for the first time in the world practice the Ministry of justice will become a participant at the capital market, as it assumes the functions of the Central securities Depository of the public interest entities, except for the financial institutions - their depositary shall be related to the national Bank. The functions of the Depositary are not only the maintenance of a register of securities and the clearing and settlement operations. The licensed type of activity and the license for such kind of activity the Ministry of Justice should be received from the National Commission for financial market. The National Bank shall also do the same. In addition, the Depositary is performing the commercial activity, and the law of commercial activities does not provide the right to the Ministry of Justice or the National Bank to carry out this activity.

Among the 11 laws we there are those which approval is necessary for the work of the government, and the delay in their adoption could have negative consequences, or would prevent the government to do their job. Introducing the legislation in the Parliament, the Prime Minister numbered them as follows….

Law N- 1. The abolition of the immunity of judges, in case of offences related to money laundering and illicit enrichment and elimination of the Appeals Chamber of Benderi.

Act N-2. Increase in disciplinary responsibility of judges by guaranteeing the inevitability of punishment for all who will break the Judges’ Law.

Law N- 3. The draft law on fighting money laundering, efficiency-enhancing measures to ensure the protection by the competent authorities in the field to transactions and activities in which there are suspects in money laundering and terrorist financing.

Law N- 6. Approval of the combined nomenclature with the aim of implementation of Association agreements and deep and comprehensive free trade area with the EU.

Law N- 7. Relating to public Finance and fiscal responsibility, regarding salaries and pensions increase in Moldova.

Acts N- 8, N- 9 and N-10. These are changes into the law on the state budget for the current year, in the state social insurance budget, mandatory health insurance funds for 2014. Such adjustments to these laws with regard to the current situation are accepted every year.

Law N-11. For organization and functioning of the Single National emergency call 112.

With varying degrees of urgency to these laws, in general it was a fault. It won’t be difficult for the government to explain why it needs to ensure that the Cabinet could absolutely fulfill its mission.

But among this list, in mid - numbers four and five there were changes directly related to business, economics and finance-money activity. Those laws, included inaccuracies and dampness in the legal framework, which had fraught with billions of dollars in losses to the economy and the country's budget.

Law N- 4. It makes changes and additions to many laws and, in particular, applies to the banking sector. This is the same bill that the deputies promised to consider carefully before the adopting it in the second reading. But that's not all. The government adopted the law on the capital market – and that shocked the market and regulator especially. The Deputy Chairman of NCFM Iurie Filip stated that on the date of entry of this law may provoke such situations when not any transactions at the securities market with shares of the banks, insurance companies and large companies will be held.

Law N- 5 involves changing some of the laws relating to movable property pledges and other commitments on the movable property. According to one of the changes, the state guarantees the return of VAT when you purchase the collateral, on the other hand - it creates opportunities for unscrupulous taxpayers to create a number of schemes to return VAT. As a result, according to the statement of the Chairman of the parliamentary Committee on the budget and Finance, the state budget will lose half a billion lei per year.

But we will not discuss this situation. If the government decided that it requires some laws, which for one reason or another, the Parliament will tighten their adoption, it availed this opportunity. The parliament in the allotted 72 hours did not send the government to resignation for these actions and thus supported its initiative. The last instance which could stop the entry into force of these laws – the President and Cabinet of Ministers supported adoption of these laws.

When on August 8, these laws were published in Monitorul Oficial, promulgated by the President, and signed by the Chairman of the Parliament, although in the preamble it was clarified that they were adopted under the responsibility of the government.

Moldova is a Parliamentary Republic. The laws should be adopted by the elected MPs.

There is a logical question: if the government adopts laws - why we need the Parliament?

I don’t want to be accused of anti-constitutional propaganda, but it is agreed on the part of Constitution and the government as the Executive authority.

From the outlook it looks like this: the government got tired that the Parliament does not accept the laws as it is required by the government, or delaying their adoption. The Cabinet goes to the deputies and says: as long as you discuss here, I can not work, so I, as the Cabinet determines that these laws were adopted and you - if you disagree - can send me in resignation, knowing full well that in three months before the parliamentary elections, no one will dare to change the government. I don't think it is blackmail, but such idea exists.

So we are talking about the block of the comprising 11 documents. If the failure of some laws could create difficulties for the government to fulfill its mission and there will be justification for their adoption, about half of the laws in no way will create difficulties for the government, and the urgent necessity to adopt them. In addition, there are many controversies in society and in the Parliament during the discussions in the first readings, and there is no common vision on these laws within one faction.

Excuse me Mr. Prime Minister; with all due respect, I don't think that taking in haste such a large package of laws, the government was aware of the implications of some of them. Indeed, a number of laws adopted by the government are different from what was proposed for the approval of Parliament, and was discussed neither by the public, nor with the ministries and agencies to which these laws were directed. Maybe these projects were just slipped?

Today it is already obvious that there are problems with the execution of a number of laws, there are serious financial and economic losses for business and the government. Legitimate question, if it is impossible to fulfill, it is possible to fix it or stop the action of these laws?

Politicians, can you explain a simple truth? In the classic sense there are three powers: legislative, executive and judicial. How can we talk about the Republic and democracy in this regard?

I would like to emphasize that the bewilderment of people was caused not by the laws on the elimination of the Appeals chamber of Benderi or on the creation of a single emergency number 112 but the fact that the government, with a working Parliament took responsibility for financial, economic laws, which the lawmakers pledged to carefully consider when adopting them in the second reading. The government deprived us of this fact. Responsibility for this will not bear the government and the Prime Minister, but the Parliament and each MP individually. Before the elections the government will work three-four months. Why was it necessary to adopt these 11 laws? The economic consequences you will see before the end of the current year.


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