14.7 C
May 25, 2022

Political parties, close to financial collapse after the presidential election

After the presidential election, the political parties in Romania are in the most difficult financial situation in recent years, accumulating historical debts as a result of campaign expenses much higher than the revenues they could get, shows an analysis released by Mediafax. The debts of the political parties however, reveal the poor legal system in matters of political parties’ funding which allows spending amounts much higher than revenues, without close supervision by the fiscal authorities.


Political parties and independent candidates spent 7.2 million euro  in the elections


The elections brought all parties and independent candidates in a position to spend about 7.2 million euro, or 32,230,686 lei, according to figures reported officially to the Electoral Permanent Authority (AEP). On the other hand, only the first six electoral competitors have entered the presidential campaign with debts of nearly 4 million euros (17.7 million lei), at the top being the PSD-PC-UNPR Alliance.

Moreover, the Social Democrats spent three times higher than the revenues they have made before and during the presidential campaign. The  PSD-PC-UNPR Alliance-entered the election with 6,457,861 lei revenues, as the balance sheet made after the election has revealed, but had expenses of 20,136,729 lei. This represents more than half of the total expenditure by all parties and presidential candidates.

The Social Democrats received during the campaign donations amounting to RON 3,729,969 and other 2,727,892 RON have represented incomes transferred from the party before the campaign.

The largest expenditures for Victor Ponta, the candidate supported by PSD-PC-UNPR were for “printed and promotional materials” (10,002,943 lei) ,outdoor advertising (6,566,454 lei), followed by expenditures for advertising in the press, radio and TV (2,396,203 lei) and service charges (483,488 lei).


Invoices of 13,835,961 lei for PSD at the end of the presidential election


At the end of the presidential election the PSD-PC-UNPR Alliance had to pay invoices of 13,835,961 lei. The PSD’s financial situation is more delicate as after the European elections in May  2014 the PSD-PC-UNPR Alliance recorded 2,971,045 lei unpaid debts after the it  spent 7,943,361 lei in the campaign. Earlier this year, the financial statement revealed historical party debts: 17,973,299 lei representing debts to be paid over a period of up to one year and 14,100,225 lei were listed as debts to be paid within a period exceeding one year. However, in the past year – 2013 being a non-electoral year, the PSD managed to achieve revenue of 15,203,654 lei, and expenses of 14,188,357 lei, so a surplus of 1.015.297 lei.


The new PNL resulted from the merger between the old PNL and PDL, to cumulate debts of both parties


The Christian Liberal Alliance, between PNL and PDL, spent 7,291,221 RON as compared with  5,029,548 RON  earned before and during the campaign.

1,374,309 lei was income transferred from the two parties, while 3,655,239 lei were donations during the election campaign.

To almost all categories of expenditure, the PNL-PDL alliance  showed lower figures than PSD-PC-UNPR, excluding service costs (801,903 lei), which were double than those of  Social Democrats. Otherwise, the ACL had the biggest expenses with printed promotional materials (2,802,377 lei), followed by outdoor advertising (2,382,959 lei) and advertising in the press, radio and TV (854.208 lei). Finally, PNL and PDL have mentioned unpaid debts of 2,730,481 lei.

The merger between PNL and PDL makes the new party, named new PNL, to take both financial benefits and liabilities of the two parties.

Thus, for the Euro- Parliamentary elections, PDL had unpaid debts of  647,857 lei, after it spent  in the campaign 1,988,628 lei. Earlier this year, PDL had to pay 9,112,531 lei, representing debts to be paid within a period of up to one year.

However, the financial statement of 2013, put PDL in a position to have spent more 1,591,434 lei than its revenues of 5,474,992 lei.

In turn, PNL is in a much more delicate situation, on the one hand due to its own commitments, on the other side due to the liabilities recorded in the USL with PSD.

From the European Parliament elections PNL came out with unpaid debts of 4,546,183 lei, after it spent 7,234,547 during the election campaign. This, after the Liberals mentioned in the balance sheet for last year that this year they must pay debts of 15,352,376 lei. In  2013 PNL had revenues of  9,219,922 9,464,889 lei, and expenses of 9.464.889 lei, recording a deficit of 244,967 lei.

In addition,  PSD and PNL still have joint financial commitments associated with the Social Liberal Union (USL), which was mentioning  in the financial statement early this year that it has to pay during 2014 a debt of 9,717,081 lei. USL has mentioned that last year had revenues of  1,001,222 lei and double expenses  of 2,021,943 lei.


PNL leaders say the issue will be solved legally


“At central level we have no more debts, instead we have old debts that we have inherited and which we must solve in the future, “Teodor Atanasiu, senior vice president of the new PNL told Digi24.

PNL’s first deputy chairperson  Andreea Paul expressed her skepticism about this analysis released by Mediafax. She told RFI on Monday the PNL debts problem was not discussed in the National Permanent Bureau (BPN) of the  party . “I am not the Liberals’ treasurer, we have not discussed this issue at the  National Permanent Bureau and it would not be the first time when in the media appear alarming news that are not confirmed,” Andreea Paul told RFI on Monday.”Allow me to take this news more cautious and to believe that things will be solved legally, correctly, naturally,” she added.


Related posts

CSAT to discuss mission to Mali and privatization of CFR Marfa

Nine O' Clock

Liberals, SocialDems clash over alternative rescue measures


Postal voting draft to be discussed by Gov’t this week

Nine O' Clock