415 The priority areas of the EU financial assistance agreed by the Parties shall be laid down in annual action programmes based on multi-annual frameworks which reflect agreed policy priorities. The amounts of assistance established in these programmes shall take into account the Republic of Moldova’s needs, sector capacities and progress with reforms, in particular in areas covered by this Agreement. The EU will provide support in the context of the overall priorities for assistance to the Republic of Moldova, as outlined in the European Neighbourhood Instrument (ENI) Single Support Framework (SSF) and in the programming prepared for the Republic of Moldova through the ENI. Ensure effective operation of the domestic mechanism of coordination and establishing priorities for the assistance provided by the EU. State Chancellery Central public authorities 2014-2016 - Correlate the assistance programming process with the expenditures and/or annual budgets. Annually - 416 In order to permit optimum use of the resources available, the Parties shall endeavour to ensure that EU assistance is implemented in close cooperation and coordination with other donor countries, donor organisations and international financial institutions, and in line with international principles of aid effectiveness. The EU will also encourage and seek coordination of support from the Republic of Moldova’s partners. It will use its relevant financial instruments to help implement the Association Agenda. Periodic monitoring of performance of international principles of aid effectiveness at the country State Chancellery Annually - 417 The fundamental administrative and technical basis of financial assistance shall be established within the framework of relevant agreements between the Parties. - Examine, at the request of one of the parties, the opportunity of updating the current legal framework, established through the Framework Agreement between the Government of Republic of Moldova and the Commission of the European Communities on external assistance (Brussels, 11.05.2006). State Chancellery Ministry of Foreign Affairs and European Integration During the process - 418 The Association Council shall be informed of the progress and implementation of financial assistance and its impact upon - Elaborate reports (annual, semi-annual depending on the required periodicity) on monitoring and evaluation of financial assistance. State Chancellery Central public authorities Annually -
pursuing the objectives of this Agreement. To that end, the relevant bodies of the Parties shall provide appropriate monitoring and evaluation information on a mutual and permanent basis. 419 The Parties shall implement assistance in accordance with the principles of sound financial management and cooperate in the protection of the financial interests of the EU and of the Republic of Moldova in accordance with Chapter 2 (Anti-Fraud and Control Provisions) of this Title. - 1. Training national authorities in accordance with the principles of sound financial management and protection of the financial interests of the EU; State Chancellery Central public authorities During the process - 2. Adjust as necessary the legal and regulatory framework on financial management in accordance with the best practices and the protection of financial interests of the EU and RM. State Chancellery Central public authorities During the process - CHAPTER 2: ANTI-FRAUD AND CONTROL PROVISIONS 420 Definitions For the purposes of this Chapter, the following definitions as set out in Protocol IV of this Agreement apply. - 1. Set up a working group at national level in charge of the correct application of the provisions of the Association Agreement on preventing and combating fraud in the management of the EU funds; Ministry of Foreign Affairs and European Integration Quarter IV 2014 Within the limit of budget funds and the funds of possible donors 2. Examine national legislation in order to identify matches of the notions defined in Art. 420 of the Association Agreement with the provisions of national legislation in the area, in particular: - Develop relevant legislative amendments so that the notions of “conflict of interests” and “paid in an inappropriate way” correspond to the international standards in the management of the European Working group National Commission for Integrity Ministry of Justice National Centre Quarter I 2015 2015-2016 421 This Chapter be applicable to any further agreement or financing instrument to be concluded between the Parties, and any other EU financing - Examine the opportunity of transposing in domestic legislation the provision on compulsory analysis of compatibility with the principles of Chapter 2, Title VI of the Association Agreement, while concluding agreements with the EU, as well as identifying the legislative amendments required to ensure that these principles are respected in the management of EU funds. Ministry of Foreign Affairs and European Integration Working group 2015 Project of the capacities of the Ministry of Foreign corruption
instrument to which the Republic of Moldova may be associated, without prejudice to any other additional clauses covering audits, on-the-spot checks, inspections, controls, and anti-fraud measures, including, those conducted by the European Anti-Fraud Office (OLAF) and the European Court of Auditors (ECA). Affairs and European Integration to manage support in the Association Agreement 422 Measures to prevent and fight fraud, and any other illegal activities The Parties shall take effective measures to prevent and fight fraud, corruption and any other illegal activities, inter alia by means of mutual administrative assistance and mutual legal assistance in the fields covered by this Agreement. - 1. Strengthen professional capacities of the employees of the National Anticorruption Centre and of the Ministry of Interior according to the competences attributed to the area of preventing and combating corruption; National Centre Ministry of Interior Permanently Within the limit of budget funds and of the funds of possible donors 2. Adjust the legal framework in order to prevent situations of conflict of interests in the implementation of the EU funds; National Commission for Integrity and other competent authorities 2014 Within the limit of the assigned budget funds 3. Set up and implement a mechanism to promote integrity within the justice system. 423 Exchange of information and further cooperation at operational level 1. For the purposes of proper implementation of this Chapter, the competent authorities of the Republic of Moldova and EU authorities shall regularly exchange information and, at the request of one of the Parties, shall conduct consultations; Ensuring effective cooperation with and assistance to the relevant EU institutions and bodies, including the European Office (OLAF) for checks and inspections related 1. Designate a key partner institution in the Republic of Moldova for cooperation with the European Anti-Fraud Office (OLAF); Quarter IV 2014 - 2. Negotiate and sign an Administrative Agreement on Cooperation with the European Anti-Fraud Office (OLAF) (separately with each institution apart according to the model applied in cooperation with the Customs Service in combating cigarette smuggling, or based on a joint agreement involving all relevant institutions of the RM); 2015-2016 - 3. Ensure exchange of information with EU process of cooperation at the operational
suspected and actual cases of fraud, or any other irregularity including conflict of interest, following national or EU controls. Where appropriate, OLAF may assist the competent authorities of the Republic of Moldova in this task. and prosecution in cases that imply EU funds and other donors’ funds. Develop and promote, as the case may be, the relevant amendments to the national legislation. Ministry of Interior National Commission for Integrity Prosecutor General’s Office 2015-2016 426 Communication of fraud, and irregularities 1. The authorities of the Republic of Moldova shall transmit to the Commission without delay any information which has come to their notice on suspected or actual cases of fraud, or any other irregularity, including conflict of interest, in connection with the implementation of EU funds. In case of suspicion of fraud and corruption, OLAF shall also be informed; 2. The authorities of the Republic of Moldova also report on all measures taken in connection with facts communicated under this article. Should there be no suspected or actual cases of fraud, corruption, or any other irregularity to report, the authorities of the Republic of Moldova shall inform the Commission following the end of each calendar year. Putting in place a functional framework for carrying out effective financial investigations and asset recovery. 1. Develop and promote the adoption of a new draft law, “Law on financial inspection (control)” including the principles of carrying out information exchange with the EU party; 2. Set up a contact point and a mechanism for information exchange with the EU, at the institutions in charge of combating fraud, corruption and other violations, including: Set up and implement a mechanism to provide the European Commission with information/evidence pertaining to the prevention of conflicts of interests in the implementation of EU funds, in accordance with Article 56 of the Regulations (EC, Euratom) No 1605/2002 as of June 25, 2002 on financial Regulation applicable to the general budget of the European Communities. Ministry of Finance National Centre Ministry of Interior Court of Accounts National Commission for Integrity 2015-2016 2015 - 427 Audits 1. The European Commission and the ECA are entitled to examine whether all expenditure pertaining to the Ensuring effective cooperation with and assistance to the relevant EU institutions and bodies, including the Evaluate the regulatory framework in the area with a view to identify the opportunities for the European Commission and the European Court of Auditors to conduct an audit on the territory of the Republic of Moldova related to the implementation of the EU funds. Court of Accounts Other competent authorities Quarter I 2015 -
– Article 2 paragraph (1) – The Republic of Moldova shall undertake the measures required to ensure that the conduct referred to in Article 1, and participating in and instigating to or attempting the conduct referred to in Article 1 paragraph (1) are subject to effective, proportionate and dissuasive criminal sanctions. – Article 3 – Criminal liability of company managers. 432 Protocol to the Convention on the protection of the European Communities’ financial interests. The following provisions of the abovementioned protocol shall apply: – Article 1 paragraph (1) subparagraph (c) and Article 1 paragraph (2) – Relevant definitions; – Article 2 – Passive corruption; – Article 3 – Active corruption; – Article 5 paragraph (1) – The Republic of Moldova shall undertake the measures required to ensure that the conduct referred to in Articles 2 and 3, and participating in and instigating to or attempting the conduct in question are subject to effective, proportionate and dissuasive criminal sanctions; – Article 7, to the extent that it refers to Article 3 of the Convention. Political dialogue and reform 1. Further reforming the justice sector, in particular ensuring the independence, impartiality, professionalism and efficiency of the judiciary, the prosecution, and law enforcement agencies, which should be free from political or any other undue interference, and intensifying the fight against corruption. 2. Ensuring the full functioning of the National Anticorruption Centre, including by taking part in international cooperation against corruption. Revision of the national legal framework, including the Law No. 90 as of April 25, 2008, on preventing and combating and the Criminal Code of the RM, with regard to the correspondence with the provisions of the Convention on the protection of the European Communities’ financial interests. National Centre Ministry of Interior 2014-2015 State budget or within the limits of external assistance projects 432 2nd Protocol to the Convention on the protection of the European Communities’ financial interests The following provisions of the abovementioned protocol shall apply: – Article 1 – Definition; Revision of the national legal framework, including the Law No. 90 as of April 25, 2008, on preventing and combating and the Criminal Code of the RM, with regard to the correspondence with the provisions of the 2nd Protocol to the National Centre 2014-2015 State budget or within the limits of
– Article 2 – laundering; – Article 3 – Liability of legal entities; – Article 4 – Sanctions applicable to legal entities; – Article 12, to the extent that it refers to Article 3 of the Convention. Convention on the protection of the European Communities’ financial interests.. external assistance projects