Moldova, Explained by ZdG. November 25, 2019.

HAPPENING THIS WEEK

Greetings from Chișinău! Here is what’s happening this week. We take a closer look at the illicit tenders that prejudiced the state with millions of lei in the implementation of faulty projects from European money. In editorials, we talk about the growing Russian influence in Moldova with the change in power, and the options for Moldovans remaining to put up a fight. In weekly investigations, we offer details in a case wiretapping journalists’ conversations during the former Democratic Party government as well as bring you an analysis of the assets and incomes of the newly installed government. All of that and more in this week’s newsletter. Happy reading! 
 

THIS WEEK’S FEATURE

MISUSED EUROPEAN MONEY: Nine persons were detained, among them local and central public service officials, as well as representatives of private companies. The detainees were suspected of having acted according to a determined criminal plan, seeking financial assistance from the Ecological Fund for the implementation of local projects. Despite the fact that five of the nine persons pleaded guilty in public money embezzlement, the court punished them only with a fine. While the state lost more than half a million dollars, the suspects paid fines amounting to 29,000 dollars. As the lawsuit on the fraudulent tenders went on, companies affiliated with the same owners won a contract of almost $3 million, having gained the right to rebuild a border crossing point, a project realized, almost exclusively, from European funds. In less than a year since it was put into operation, one of the beneficiaries, the Border Police, signals the poor quality of the construction works. UNDP Moldova, which had contracted this company, says that, as a managing partner, it does not require criminal records of the founders or company providing services. While analyzing the case, ZdG concluded that money provided by the state and the E.U. for infrastructure projects was misused while the projects remained solely on paper. 

FROM THE EDITORS

RUSSIA CELEBRATING: The ousting of the reformist government on November 14 and its replacement with a so-called technocratic one, which is de facto ruled by President Igor Dodon, is a re-entry of the historical province of Basarabia under Russian rule. From the beginning, Russia’s aim was to attract the right-wing parties in majority coalitions with the political left, in the name of a common political ideal. The outcome of this united left-right governance was to compromise, destroy and eliminate the right-wing parties from the political circuit, so that the left wing, controlled by Moscow, could consolidate power unilaterally, argues ZdG’s Politics Editor Petru Grozavu. And while Russia is celebrating more victories in Moldova, Ukraine is starting to worry about Russia using Moldova to attack Ukraine. 

FIGHTING OR LEAVING: The new leaders in government score lower in terms of political independence, education, qualification, and diversity compared to the previous government. ZdG’s Executive Director Alina Radu claims that we should ask questions and request answers, as it is up to us to demand that a clean state be built on citizens’ money and that corruption be punished. There are people who choose to stay and fight, to build a Moldova for all, associating with activists, journalists, free people who fight against corruption, oligarchy and political interests that lack transparency. Fighting injustice became easier as we are no longer deported (not yet), arrested for meetings (not yet), as we are no longer prohibited from leaving or returning, shouting or criticizing (not yet), we just have to keep the fight consistent and permanent. 

DIGNITY AMONG CIVIL SERVANTS: After the new so-called technocratic government came to power, several civil servants and diplomats resigned their positions and status to preserve their principles and dignity. ZdG’s Editor-in-Chief, Aneta Grosu argues that the problem is not the young professionals leaving the new government led by Ion Chicu, but rather the reason they are leaving. And although they did not say it publicly, it is clear that none of them agreed to dedicate their life and energy, career and inspiration, their personal time to strengthen the image of a government hastily assembled mainly on the Socialist Party principles.

THE FOREIGN BRIEF

RUSSIAN ASSISTANCE: After making his first foreign visit as Moldova’s Prime Minister to Moscow, Ion Chicu held a press briefing mentioning Russia’s agreement to open a credit line of more than $500 million for investment projects in Moldova. The representative of the European Union to Moldova and the former Minister of Foreign Affairs Nicu Popescu affirmed that while the assistance offered by the E.U. consists of non-refundable money, the $500 million that are to come from Russia is a loan which the country will have to pay back. In 2009, Russia made a similar promise to the Communist Party, but the money never reached Moldova.  

OSCE ON JUSTICE REFORM: The O.S.C.E. Bureau for Democratic Institutions and Human Rights (O.D.I.H.R.) released its interim opinion on the draft law on the reform of the Supreme Court of Justice and of the Prosecutor’s Office, previously initiated by the Sandu Government. In its opinion, O.D.I.H.R. emphasizes that the procedure by which this project was developed and adopted does not align with democratic principles, taking into account the fact that there was a relatively short timeframe for consulting the project and for conducting an in-depth study on the expected impact. 

EBRD AND THE EASTERN PARTNERSHIP: During the inaugural E.B.R.D. Eastern Partnership Investment Summit held in London on November 22, the E.B.R.D. President affirmed that the Moldovan banking sector is opening up the country to more global investment. The Eastern Partnership countries of eastern Europe and the Caucasus are becoming more attractive to foreign investors after rolling out reforms that have increased their economic potential. Since the start of the Bank’s operations, the EBRD has invested over €26 billion in more than 1,200 projects across the six countries.

ZDG INVESTIGATES

MILLIONAIRES IN THE GOVERNMENT: Moldova’s new Prime Minister, Ion Chicu lives in a duplex villa which he shares with his sister and his brother-in-law, while the Minister of Internal Affairs owns a luxurious house, built during the period he was in public office. The house was built when the minister’s parents owned the land that they shortly donated after the construction was finalized. ZdG “X-rayed” the assets of the Chicu Government members, voted by the Socialist Party and the Democratic Party deputies on November 14, 2019, concluding that more than half of the ministers can afford luxurious lifestyles for Moldova. ZdG also found out that some of the ministers have trouble proving the origin of their assets, while others bought expensive apartments when they were public servants. 

WIRETAPPED JOURNALISTS: The parliamentary deputy, Chiril Moţpan released a list of the persons who were supposedly intercepted during the Democratic Party government rule, one of them being ZdG’s Executive Director, Alina Radu. Shortly after the declaration, the non-governmental media organizations requested that the Office of the Prosecutor General carry out an objective investigation regarding wiretapping of over 20 journalists and activists from different fields.  

MOLDOVA IN WORLD NEWS

TURBULENT POLITICS: Moldova’s anti-oligarchic government is out of the picture. But it looks like the turmoil is only just beginning, writes Vica Lozinschi for Global Voices. Despite being short-lived, the former ruling alliance managed to provide one of Eastern Europe’s most surprising developments this year. The Socialist Party victory in the local elections in Chișinău and the fight over the Prosecutor General’s selection were the two catalysts that brought the anti-oligarchic alliance down. The mood in Chisinau among activists is that, after only five months of responsible governance, the old game is back in town. 

LENDING RATES: The volume of new loans extended by Moldovan banks has increased by around 26 percent in the third quarter of 2019, the bne IntelliNews writes. The population has begun to borrow after almost three years of stagnation, this is especially due to the low lending interest rates, which are between 7 and 10 percent. The central bank has also promoted lending conditions to stimulate lending to companies. Because of the historically low-interest rates, consumer loans and mortgages are the fastest-growing loans.  

TROUBLESOME GOVERNMENT: The history of independent Moldova is a cemetery of failed authoritarian projects that sought to monopolize and hold on to political and economic power, Stanislav Secrieru writes for Carnegie Moscow Center. In Moldova, the pro-Russia Socialist Party has managed to accumulate an impressive amount of institutional power. But this concentration of power brings not only advantages but also greater vulnerabilities, which can weaken the Socialist Party. Mădălin Necsutu from Balkan Insight also writes about the risks of this big power concentration in the hands of the Socialist Party, mentioning that this power will bring the Socialist Party to its demise, as the party will fail to secure the promises made to Russia and implement the reforms demanded by the European Union.   

SPOTTED THIS WEEK

PUTIN AGAIN IN MOLDOVA: President Igor Dodon invited Russia’s President Vladimir Putin to visit Chișinău in the near future. Dodon noted that he plans to meet with the Russian President by the end of this year in Russia during the informal Commonwealth of Independent States leaders meeting scheduled for December 20, 2019, in St. Petersburg. During his term as Moldova’s President Dodon made more than 20 official visits to Russia, only two to Brussels and one to the U.S.A. 

GENDER-BASED VIOLENCE: On November 25 the O.S.C.E. starts a social media campaign against gender-based violence. The campaign is based on the results of a survey on the well-being and safety of women, conducted by the O.S.C.E. in 2018, in seven states one of them being Moldova. Gender-based violence is a phenomenon that affects women and girls throughout all areas in Moldova, regardless of income or origin.