Funding of Political Entities and Election Campaigns Under Scrutiny: Challenges and Solutions

04/11/2024

On December 27, 2019, the Parliament of Montenegro adopted a new Law on the Financing of Political Entities and Election Campaigns (“Official Gazette of Montenegro,” No. 3/20), which came into effect at the beginning of 2020. The intent behind this new legislation was to optimize the overall environment for upcoming election cycles and to establish mechanisms that would strengthen public trust in the electoral process and increase transparency in the financing of political entities and election campaigns. The legislators emphasized the importance of reinforcing the role of institutions involved in the electoral process, such as the Agency for the Prevention of Corruption and the State Audit Institution. The law regulates the oversight of political financing by the Agency for the Prevention of Corruption, and it introduces a new provision requiring the State Audit Institution to audit annual consolidated financial reports of political entities.

To create a foundation for lawful and transparent financing and operations of political entities and to enhance public trust in the electoral process, this law outlines the methods for acquiring and securing financial resources for the regular activities and election campaigns of political entities. It also sets restrictions on the use of state assets, funds, and public authority during the campaign, along with provisions for the monitoring, oversight, and auditing of the financial operations of political entities to ensure their legality and transparency.

Despite the establishment of this legal framework as part of a comprehensive legislative reform of electoral and related laws, which took into account relevant international recommendations (notably from OSCE/ODIHR), and after holding elections since its implementation, numerous issues and ambiguities have been identified in the existing legislation. Consequently, it is clear that amendments are needed to address these gaps.

The complete analysis, “Funding of Political Entities and Election Campaigns Under Scrutiny: Challenges and Solutions,” was prepared by UZOR as part of the project “Contributing to the EU Integration Process,” which is implemented in cooperation with the Center for Democratic Transition (CDT) and supported by the Ministry of Foreign Affairs and International Cooperation of the Republic of Italy.