Report of the discussion

[TRANSPARENCY OF THE STATE ELECTION CAMPAIGN FUNDING]

GREAT

KHURAL

Transparency of the State Great Khural election campaign funding Brief report of the discussion One. Tripartite discussion The Voters Education Center organized a discussion on Transparency of the State Great Khural election campaign funding with assistance of US Embassy on April 7, 2010 in Bishrelt hotel. Over 60 representatives from political parties, government and non-government organizations, independent researchers as well as resident offices of international organizations took part in the discussion and expressed their views and opinions on the topic. The event was also publicized through the mass media. In accordance with the agenda, the discussion was moderated by the Doc.Prof. B. Chimid, honored lawyer of Mongolia and a member of the Steering Committee of Voters Education Center and started with presentation on Transparency of election campaign funding: The legal environment and its enforcement by R.Burmaa, chairman of the center which was followed by questions and answers by the participants. The Democratic Party, Civil Will Party and Green Party, which hold seats in the parliament, presented their views on current legal environment and its enforcement regulating the election campaign funding, its advantages and weaknesses and expressed their opinions and recommendations on means to reflect the issue in a new draft law on Election of State Great Khural which will be submitted to the parliament in the near future. The event was covered by the press including TM, C1, NTV, Eagle TV and Zuunii Medee, Ardchilal newspapers as well as some news websites. C1 television prepared 20 minute VIP interview program about the discussion and the survey results which was broadcasted 4 times in repetition. Another 20-minute program was also made and will be aired on April 14 and 15 two times a day.

The report also attaches agenda and list of the participants to the tripartite discussion. 6

Report of the discussion

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Two. Outcome of the survey and discussion Following the discussion, report of the survey and detailed recommendations of the participants as well as issues raised by the political parties were submitted to the parliament members S.Oyun and Z.Enkhbold who are also members of the working group on election law. Two days after the discussion, parliament members of the working on election law have submitted a draft of the revised law on election to the parliament on April 9. The draft law incorporated some of the conclusions, assessment, recommendations of the survey and issues raised during the discussion in following aspects: 1. It is prohibited to make a promise expressed by the mode of money in the election program. 2. Requires independent audit on calculation and study on financial sources for implementing election programs of parties, coalitions and independent candidates 3. Candidates from political parties and coalitions should submit their report on the election expenditure within 15 days after voting. 4. Financing of election expenses shall be inspected by the state audit organization. 5. It is prohibited to conduct activities with implication of money and material awards in nominating candidates from political parties and coalitions. 6. Election expenditure to be financed by the state budget should reflect expenses of audit to be conducted on election financing and its utilization by political parties, coalitions and independent candidates. 7. Liabilities including amount of penalties for breaches of prohibitions on election campaign are increased to 5-10 million MNT. 8. Election will be announced 60 days before actual election date and the duration of election campaign is extended. Three. Some comments and conclusions which were raised during the discussion B. Chimid, Doc. Prof, honored lawyer of Mongolia and a member of the Steering Committee of Voters Education Center This is a fine survey on election campaign funding. I would like to thank to the staff of the Voters Education Center and its chairman R. Burmaa for preparing and presenting proper assessment on the issue though some of the basic data is still disputable. The center has become specialized significantly in the monitoring of the election campaign funding. We have focused more on our own views and almost failed to see the election as a political process and its material and other rights issues. In other words Mongolia has faced with major crisis of election law. We should see the election funding as a whole system. The election campaign funding can not be regulated by the election law alone but we need a major law on election campaign funding. The funding system should be divided into two sections i.e. to be financed by the state and by the parties and candidates. There is no control on state or party funding. Documents are disclosed a 6

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month after election when it is too late. Therefore, the audit on election campaign funding should be divided into three parts: preliminary, progress and final audit. Z. Enkhbold, Member of State Great Khural and a member of working group on Election law revision The new draft law will be submitted to the parliament next week but the section regarding the election funding has not been renewed. If there will be any proposal on the election funding in the law from this discussion I will be able to include it in the draft as a member of the working group. The new law abolishes system of 76 small constituencies where vote buying is prevailed. The goal of the Democratic Party seeks to spend minimum expense on elections and candidates receive less funding from the party, If we wish to avoid elections influenced by money we should change the system at first place and allow certain amount of expenses to be funded by the state budget for one-time printing and distribution of materials to every families by the candidates. Since the election held in 2004 I have made my election campaign funding transparent however, others did not follow. Instead I was criticized that Enkhbold is a wealthy man why he has to ask for donations from voters? I always have had an opportunity for taking money from big companies but I did not. Because then I would not be able to criticize them if I was elected in the parliament. Thanks to that I am rather free today. D.Bayanduuren, Head of Department, General Election Committee I hope that concrete results will come out from this discussion in submitting proposals on the current draft law with regard to the election campaign funding. The election campaign funding should be the issue of main concern of this discussion. The Law on State Great Khural Election and Law on Election Central Organization stipulate that the state audit organization should take part in auditing election campaign funding. In pursuant to this provision Election General Committee addresses to the audit organization during every election. However, their position is that they have their own legislation to comply with therefore, is unable to get involved in the audit of election campaign funding issue. As for the Election General Committee, before 2008 we used to form working groups and conduct audit on election campaign funding but since 2008 election this practice ceased to exist. S. Oyun, Member of State Great Khural, Chairman of Civil Will Party Funding of political parties has become one of the most pressing and challenging issues. The funding should be transparent and there should be control on that. It is true that this principal has not been realized but it will not be realistic to talk about fair election and solution of the issue unless we make some advance step by step. Amendments to the election law imposed restrictions on donations as well as duration of TV advertisements and required disclosure of donations and income statement by the candidates however its enforcement is unsatisfactory. For example, the parties are required to submit report of their election campaign funding to the Election General Committee and publish them after elections but candidates are not required to report on their expenses as a result of amendment which was made in May 2008 just before the election and will be effective in 2012. Thus the candidates are not required to submit their report on election campaign expenses. Current survey also reveals increase of the amount of money 6

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KHURAL

spent on election after election. Issue of fair election vanishes when those who promise and spend the most win the election. Although the money is important factor, it is critical to reduce, restrict and control influence of the money. It should not be abandoned for it is impossible to achieve. The most important thing is to create a political will for the parties in power to comply with and adhere with the law. The political will and public pressure should be taken in parallel. D.Erdenebat, Secretary general of Democratic Party In my opinion election campaign funding is related with legal system of the election first of all. Secondly, it is directly associated with national security. Just ten years ago the outside world was contemptuous of Mongolia but today it has become a wealthy country in terms of its mineral resources. There are many evidences that some of them are working intensely to take control by economic means. Therefore, the election funding is directly related with issue of national security. Thirdly, it is important to create a legal environment which eliminates opportunities of corruption for parties and politicians. It is senseless to talk about the state free from corruption without creating an environment that eliminates corruption system when the politicians are nominated at first place. The position of Democratic Party is clear, to change the election system and its legal environment. Thus we can step forward, otherwise the society has exhausted its strength to go on. We should have a different look at politics and strive for the collective solution. If political parties could make decision to change the legal environment then development of Mongolia, which is a small country, ready make an immediate advance. It will be a significant success if we can unite our efforts on the current draft law on election. G. Erdenebat, Legal assistant to the President of Mongolia I am thankful for raising one of the most vulnerable issues. A given candidate has spent MNT15 million in average in the election campaign. If that is the case, this person should have printed 45,000 copies of newspapers using MNT15 million during 2008 election. This means that he or she has printed newspaper for the half of the voters but did not distribute it. If that was a color poster it means that it was printed for the one third of the voters but was not distributed. As it is the reality, we have to talk about election campaign funding. I would like to discuss the issue of election system which has become a nuisance for its been talked repeatedly during previous elections. This is the issue of election system. We should consider about how to make the election funding transparent in the majority system. As for the proportional system this method does not work. Accounting and settlement of dispute should also comply with the system. The current survey contains comparative study of election systems of several countries. B. Jargalsaikhan, Chairman of Republican Party First of all, we should consider about law enforcement. Whether it is law on election or other, there is no enforcement of the law. The people and candidates have no respect of law. Secondly, it is advised that a person with no money should not be nominated. Voters do not show up if the candidate announces a meeting with them because they are tired of empty promises by 6

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two major parties or they will show up if something (gifts or souvenirs) is to be given. Finally, if you aim to change the election law, rights and responsibilities of the candidate should be raised. The current majority system allows each candidate to have their own program which entails a tremendous expense. In the proportional system major parties have a large opportunity for manipulation however this system seems to be more suitable for us. D. Enkhtsetseg, Manager of Open Forum Society I have a comment on recommendations of the survey with regard to the duration of election campaign. During the previous monitoring it was noticed that actual election campaign was completed before it started officially. We should consider whether it can be prevented next time. Another issue with regard to the duration is that report of the election campaign expenses is required to be submitted to the Election General Committee within 15 days after the election and the Committee announces them in 35 days. We all know that this is very inappropriate. We need a regulation that requires publicizing of income and expenses during the election campaign. I wonder whether it is appropriate to have a separate structure that conducts audit in the election funding. Since we have an institution in charge of the auditing it will be better to assign the task to them. As we look at the international practice, audit organizations assist to the parliament and other independent organizations in exercising their supervisory role. However, in case of Mongolia it looks like that the audit organization sits back, saying that they have a separate legislation. L. Tur-Od, Member of the Steering Committee of TI Mongolia I would like to thank for the presentation of the survey on State Great Khural election campaign funding. I agree with the recommendations. Some progresses have been made in terms of legal regulation on election funding. Some workable provisions have been amended to the current law. Now we need specific provisions with respect to the funding. In particular, monitoring mechanism needs to be developed, feasibility of the provisions relating to durations needs to be ensured and their coordination should be improved. General Election Committee should not be blamed for everything but we should take into consideration its capacity and staff number. Furthermore, other state oversight institutions should improve their collaboration and coordination of activities. National Audit Agency should play an important role in conducting audit in the election campaign funding. L. Sanjaasuren, Legal advisor of Green Party The monitoring is well done by R.Burmaa. I would like to emphasize that the main source of todays problems is the Law on State Great Khural Election, Law on Political Parties as well as Law on Election. Huge amount of money flows in to the parties during elections. Today funding of parties should be transparent to the public because the parties have become main blood supply of all problems (corruption etc). We should not comply with those laws which contradict with the Constitution if we want to improve the election law and make the funding of parties transparent. 6

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D. Lamjav, Honorary teacher of Mongolia and a member of Steering Committee of Voters Education Center Funding of political parties is a critical issue. In the light of the influence of money to the society it causes tremendous damage if it goes wrong and plays important role in proper existence of the society when it is in the right direction. We should determine what is the party funding at first. It covers all funds spent to win the election. We all know that numbers in the reports of the parties are complete lie. In any given country election funding has become roof of the corruption. The rumor has it that average amount of money spent by a candidate (MPRP) was MNT800 million. So the numbers in this report turn to be completely incorrect. We should discover genuine truth by any other means. On the other hand General Election Committee is assigned unattainable duties in some cases. It is advisable that every institution has their own tasks to fulfill and not to take the GEC accountable for every responsibility. N.Ariunbold, Lawyer I propose that the parties may submit their reports to the district or General Tax Authority but not to the General Election Committee. These are professional organizations that can carry out audit on the funding of parties.

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