Financial Control and Budgeting Integrity – The Process of Opening Negotiations for Chapter 32

On October 12, at Hotel Rogner, an event entitled “Financial Control and Integrity in Budgets, the Process of Opening Negotiations for Chapter 32” was held.

As part of the series of presentations and discussions with important actors in the negotiation process, the Albanian Institute of Science (AIS) and ALTAX organized today the Discussion Table “Financial Control and Integrity in Budgeting: The Process of Opening Negotiations for Chapter 32″.

In this event, both organizations presented Policy Papers prepared by them, specifically:

– Albania’s Road to European Integration, Financial Control, and the Process of Opening Negotiations for Chapter 32”. – prepared by AIS/Open Data Albania.

– Local Finances; Accountability and Financial Integrity – prepared by ALTAX.

During the activity, there was a discussion with guests and participants from public institutions as well as experts in the field on the 2 policy documents

Although Financial Control is one of the 33 negotiating chapters, the implementation of the legal framework in Albania presents certain challenges. In this regard, the panelists and the guests present emphasized the importance of fulfilling the obligations for Chapter 32 “Financial Control”.

This is not only as one of the most complex and important chapters of Group Chapter 1 (#Cluster1), but also as an obligation of the country to achieve financial stability, prevent misuse of financial resources and efficient and transparent spending of public funds.

Some of the issues discussed and the suggested recommendations in focus on the recommendations of the first policy document are:

✅ The engagement and involvement of all actors as well as the strengthening of inter-institutional cooperation and priority support from the Government and the Assembly.

✅ Accelerating the process of analytical review (screening) of legislation for alignment with the EU acquis for Chapter 32.

✅ Strengthening the expertise and stability of structures and human resources involved in the negotiation process.

✅ The extent of financial education as well as the improvement of transparency and accountability to the public for fulfilling the obligations of alignment with the EU acquis for Chapter 32.

✅ You can access the Policy document by clicking on the dedicated page Cluster 1

Some of the issues discussed and the suggested recommendations focused on the recommendations of the second policy document are:

✅ Public consultation and transparency should receive special attention and care in completing the data. In a lobbying process that we have started as an organization for changing the Law on Public Consultation [1], it is necessary that the obligation to consult be improved by establishing a condition that the minutes of the consultation are confirmed with arguments by the public representatives.

✅ During any discussion of the implementation of the Municipal budget, monitoring and evaluation mechanisms should be included, in groups composed of the Ministry of Finance and public expertise to create a mechanism like the analysis “Accounting for Public Expenditures and Finances (PEFA) to be as well as for central finances, an up-to-date objective diagnosis of the performance of local public finance management.

✅ The level of fulfillment of the political program and strategic objectives needs to be made transparent to minimize the risk factors for manipulation of citizens with false/malicious information, but it also serves better accountability and focusing the dialogue with CSOs and voters towards topics that need greater attention and support from all.

✅ Among the issues that need the attention and involvement of the Municipalities is the lack of public debate for in-depth feasibility studies for international capital investment projects, where the monitoring and reporting by the Municipalities is small or negligible. In this case, assistance with direct expertise from local and national expertise in the absence/lack of expertise from the central government (line ministries) should be synchronized with the needs of the Municipalities.

✅ There is a lack of proper connection with sectoral strategies, the National Development Strategy, as well as the MTBP of the central government. Legal changes in themselves are not considered comprehensive enough to improve the existing budget process, which should increase policy focus, credibility, and results orientation

✅ You can access the Policy document by clicking on the dedicated page ALTAX Center

The ALTAX organization is implementing the project entitled Public Monitoring through Citizen Interaction supported by the MATRA Program of the Embassy of the Kingdom of the Netherlands in Tirana.

The AIS organization is part of the consortium implementing the project C1 –EU – NPA, Improving Policy Debate and Accountability to Fulfill Basic Rights through the creation of the Negotiation Platform of Cluster 1 Albania.

The project is implemented by four civil society organizations Center for the Study of Democracy and Governance CSDG, Institute of Political Studies ISP, Albanian Committee of Helsinki, and AIS / Open Data Albania. The Embassy of the Kingdom of the Netherlands in Tirana support the project.

[1] https://www.adisa.gov.al/wp-content/uploads/2021/03/Ligj_146_2014_30.10.2014.pdf, Neni 6