Money and Politics Working group conference

1
Money and Politics Working group conference

• Manila 22 January 2007
• Lolita Cigane,
• Expert in Campaign Finance Monitoring, Latvia

2
Latvias campaign financing system from anarchy
to a half full glass in five years

• Meaningful transparency detailed expenditure
  declarations, donors published on the Internet
  not later then 10 days after donation is received
  
• Cap on total campaign expenditures
• Ban on donations from businesses
• Permission to donate only from verifiable income
• Creation of a meaningful Political Party Finance
  controlling agency anti-corruption bureau

3
What makes campaign financing system change for
better?

• Scandals independent media
• NGO pressure, concerted advocacy based on
  concrete findings
• Political party/politicians who support change
  and have a clout
• Outside pressure
• The right constellation of stars ?

4
Enforcement

• The best laws are just paper tigers without
  enforcement
• Willingness to create a meaningful enforcement
  agency
• Independence of enforcement agency
• Skills
• Courage
• Ability to uphold the spirit of the law
• Independent judiciary

5
Latvian anti-corruption bureau

• Demanded a payback of 180 000 USD in illegal
  donations from a governing coalition party in
  2004, won in the 3rd instance
• Fined 4 parties in 2005 with the maximum fine for
  violating the expenditure limit (10 000 USD)
• Demanded a pay back of 26 000 USD received in
  illegal donations in 2005
• In total 500 000 USD of illegal donations have
  been paid to the state budget

6
Main criticism

• Literal reading of the laws
• Reactive rather then active position
• Lack of awareness of complexities connected with
  Political Party Finance (freedom of expression,
  third party advertising)
• Fear of possible court cases
• Formalism inability to see wood behind the
  trees

7
What can NGOs do?

• Gather data on irregularities, analyze, report
• File complaints, let the media know
• Ask questions in public
• Provide an expert advice
• Criticize but also praise encourage
• Develop good working relations
• Share information

8
Work with politicians

• Using windows of opportunity
• Nation in crisis approach
• When enforcement strengthens, become cautious
  about change
• Inability to understand the complexity of
  Political Party Finance