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National Audit Commission Reveals Shortcomings in Moldova’s Whistleblower Protection, Corporate Governance, and Procurement Systems

Overview

The National Audit Commission (NAC) has released a report highlighting several shortcomings in Moldova’s whistleblower protection, corporate governance, and procurement systems. The report emphasizes the need for improvement in these areas to combat corruption and ensure transparency.

Whistleblower Protection Shortcomings

  • A law is in place to protect whistleblowers, but it lacks effective implementation.
  • The People’s Advocate, responsible for whistleblower protection, only received three applications in 2022, none of which qualified for protection due to lack of resources and training.

Corporate Governance Challenges

  • Lack of transparency in corporate governance, including the absence of a dedicated institution to handle complaints by companies concerning violations of their rights.
  • Initiative to set up such an institution was abandoned after comments from international organizations.

Procurement System Gaps

  • While Moldova has implemented various measures to combat corruption, there are gaps in terms of sanctions for violation of conflict of interest rules and mandatory debarment from public procurement of individuals convicted of corruption.

Judiciary System Challenges

  • Understaffing, underpayment of judges, and a growing backlog of cases.
  • Judicial reforms have been launched since 2021, but their practical application remains uncertain.

State-Owned Enterprises (SOEs) Governance Issues

  • Lack of transparency in the appointment of independent board members at SOEs.
  • Absence of comprehensive compliance programs in Moldova’s largest SOEs.

Recommendations and Next Steps

The NAC has called on the government to address these shortcomings and improve whistleblower protection, corporate governance, procurement systems, and judiciary reforms. The institution will continue to monitor the implementation of anti-corruption reforms in Moldova.

Contact:

National Audit Commission [Email] [Phone]

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