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2007 Assessment

Latvia: Integrity Indicators Scorecard

Latvia: Integrity Scorecard Report > Sub-Category: Political Financing
Indicators		Score
20	Are there regulations governing political financing?	100
21	Are the regulations governing political financing effective?	50
22	Can citizens access records related to political financing?	100

Indicator and sub-Indicator Details

Are there regulations governing political financing?

20a: In law, there are regulations governing private contributions to political parties.

Score:

YES

Comments:

References: Political Organizations (Parties) Financing Law. Sec. 4, 6, 7.

20b: In law, there are limits on individual donations to candidates and political parties.

Score:

YES

Comments: An individual may contribute no more than approx. USD 19,000 (LVL 10,000) per party per year. An individual may contribute financial donations only from means legally earned during three preceding years.

References: Political Organizations (Parties) Financing Law. Sec.2, 4.

20c: In law, there are limits on corporate donations to candidates and political parties.

Score:

YES

Comments: Corporate donations to political parties are prohibited in Latvia.

References: Political Organizations (Parties) Financing Law. Art. 4.

20d: In law, there are limits on total political party expenditures.

Score:

YES

Comments: A political party (or a union of parties) that has submitted a list of candidates for a parliamentary election may spend on the election campaign an amount, which does not exceed approx. USD 0.38 (LVL 0.20) per voter in the previous parliamentary election.

References: Political Organizations (Parties) Financing Law. Art.8.4.

20e: In law, there are requirements for disclosure of donations to political candidates and parties.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there are any requirements mandating the disclosure of financial contributions to political parties or candidates. NO: A NO score is earned if there are no requirements mandating the disclosure of contributions to political parties or candidates, existing regulations do not require a donor\'s name or amount given, or the regulations allow for anonymous donations.$

Comments: Within ten days after having received a donation, a party shall publish in the internet information on this donation (type, amount, date of receipt, individual who donated).

References: Political Organizations (Parties) Financing Law. Sec. 4.

20f: In law, there are requirements for the independent auditing of the finances of political parties and candidates.

Score:

YES

Comments: At least once a year, a sworn auditor shall audit the financial and economic activity of each political party.

References: Political Organizations (Parties) Financing Law. Sec.11.

Peer Review Comments: Yes but of course there are informal mechanisms to avoid detection.

20g: In law, there is an agency or entity that monitors the political financing process.

Score:

YES

Comments: Corruption Prevention and Combating Bureau supervises the implementation of the Political Organizations (Parties) Financing Law and audits the finances of parties.

References: Political Organisations (Parties) Financing Law. Sec.13. Corruption Prevention and Combating Bureau Law. Sec.2, Clause 1., Sec.9.

Are the regulations governing political financing effective?

21a: In practice, the limits on individual donations to candidates and political parties are effective in regulating an individual's ability to financially support a candidate or political party.

Score:

100

Comments: Various sources suggest that election campaigns are in part run with the help of undeclared financial means. Consequently there is very little transparency and possibilities to regulate contributions to this unofficial part of campaign budget.

References: Cigane, L. 9. Saeimas velesanu izdevumi: partiju un citu personu prieksvelesanu kampanas izdevumi (Expenditure at the elections of the 9th Saeima: pre-election campaign expenditure by parties and other persons). Centre for Public Policy PROVIDUS. 22.02.2007. [ LINK ]

Ikstens, J. Prieksvelesanu kampanu regulejums Latvija, politikas kopsavilkums [Regulative Framework of Preelection Campaigns in Latvia, Policy Brief]. Public policy portal Politika.lv 10.05.2005. [ LINK ]

21b: In practice, the limits on corporate donations to candidates and political parties are effective in regulating a company's ability to financially support a candidate or political party.

Score:

100

Comments: Donations from corporate entities to political parties are prohibited in Latvia. However, various sources suggest that election campaigns are in part run with the help of undeclared financial means. Consequently there is very little transparency and possibilities to check whether contributions to this unofficial part of campaign budget stem from corporate entities.

21c: In practice, the limits on total party expenditures are effective in regulating a political party's ability to fund campaigns or politically-related activities.

Score:

100

Comments: During the campaign of parliamentary elections of 2006, two political parties (the People's Party and the coalition of the Latvian First Party and party "Latvian Way") used extensive advertising, which was formally placed by the so-called third-party organizations. These were formally independent entities that, however, were set up by people closely related to these parties. This was essentially a way to circumvent the limit on party expenditure. The advertising appeared to have largely influenced the election outcome and showed major weaknesses in the enforcement of the expenditure limit.

Ikstens, J., Runcis, A. Brivas un godigas velesanas [Free and Fair Elections]. Published in: Rozenvalds, J. (ed.). Cik demokratiska ir Latvija. Demokratijas monitorings 2005-2007. [How Democratic is Latvia. Monitoring of Democracy 2005-2007]. Zinatne, 2007. Pp.40-44.

Auers, D., Ikstens, J. Politisko partiju loma demokratija [The Role of Political Parties in a Democracy]. Published in: Rozenvalds, J. (ed.). Cik demokratiska ir Latvija. Demokratijas monitorings 2005-2007. [How Democratic is Latvia. Monitoring of Democracy 2005-2007]. Zinatne, 2007. Pp.45-48.

21d: In practice, when necessary, an agency or entity monitoring political financing independently initiates investigations.

Score:

100

Comments: The Corruption Prevention and Combating Bureau routinely scrutinizes the financial activity of all parties and investigates possible irregularities whenever they appear to have taken place. However, the effectiveness of this scrutiny varies from case to case.

21e: In practice, when necessary, an agency or entity monitoring political financing imposes penalties on offenders.

Score:

100

The Corruption Prevention and Combating Bureau. Annual report 2006. Results of activities in the checking of the implementation of rules on financing political parties and their unions. Pp.31-33. [ LINK ]

21f: In practice, contributions to political parties and candidates are audited.

Score:

100

Comments: The Corruption Prevention and Combating Bureau scrutinizes regularly contributions to all political parties. However, the Bureau's effectiveness in the investigation of unofficial contributions appears to be weak.

Can citizens access records related to political financing?

22a: In practice, political parties and candidates disclose data relating to financial support and expenditures within a reasonable time period.

Score:

100

Comments: Political parties publish their donations within ten days from the receipt of such donations. This is done through a data base, which is run by the Corruption Prevention and Combating Bureau.

References: Auers, D., Ikstens.J. Democratic Role of Political Parties. Published in: Rozenvalds, J. (Ed.)How Democratic is Latvia. Democratic Audit. LU Akademiskais apgads (2005). P.94. [ LINK ]

The official data base of political party finances: [ LINK ]

22b: In practice, citizens can access the financial records of political parties and candidates within a reasonable time period.

Score:

100

Comments: The database contains complete records of donations to parties as well as financial declarations, which are legally required. It is available instantly on-line for any user.

References: The database of parties' financial records on the website of the Corruption Prevention and Combating Bureau. [ LINK ]

22c: In practice, citizens can access the financial records of political parties and candidates at a reasonable cost.

Score:

100

Comments: The database is available on-line at no cost.

References: The database of parties' financial records on the website of the Corruption Prevention and Combating Bureau. [ LINK ]