Last update: Sunday, March 29, 2020

Socialist Movement for Integration, Incomes and Expenditures for the 2017 Electoral Campaign

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Open Data Albania is investigating into the incomes and expenditures of the Socialist Movement for Integration for its electoral campaign of 2017 elections. The data provided here are extracted from the party’s audit reports prepared by independent certified accountants, who are registered with the Institute of Certified Accountants. Such audit reports are compiled in compliance with the Electoral Code of the Republic of Albania, i.e. Law No. 10019, dated, as amended, and Law No. 8580, dated 17.02.2000, as amended, on Political Parties.  The political parties running in these elections were required by law to declare their expenditures for a period starting from 5 December 2016, i.e. the date when the election date, June 25th, was announced. The Socialist Movement for Integration Party has a central internal audit board that oversees the party’s financial activity.
The Socialist Movement for Integration has declared 75 283 960 lekė of incomes for the reporting period, and 71 336 809 lekė of expenditures. In both its incomes and expenditures, this party has also included not only monetary ones, but also ‘in kind’ contributions recognized by the beneficiaries. 
Its incomes of 75 283 960 lekė include: funds from the state budget, contributions from physical persons in cash and in kind, incomes from unpaid media advertising, and own revenues.

Comments and Analysis: ODA

Incomes of the Socialist Movement for Integration during the 2017 electoral campaign (in ALL)
Source: Report of Certified Auditor Anita Pulaj for funds benefitted and spent by the Socialist Movement for Integration for the electoral campaign of the parliamentary elections of 25 June 2017.
Comments and Analysis: ODA

The Socialist Movement for Integration declares to have received two types of financing from the state budget during this reporting period, including 7 094 507 lekė for its electoral campaign and 16 405 453 lekė as annual financing for the party in general, amounting in total to 23 499 960 lekė of public funds. One transaction between the state budget and this party is executed after the reporting period, i.e. on 25 June.  However, this is still qualified in its report as incomes for electoral purposes. 

Public Funds (state budget) for SMI, Annual Fund and Campaign Fund 2017
Comments and Analysis: ODA

In total, the SMI has received 13 967 727 lekė of donations for its electoral campaign. The SMI is the recipient of the largest amount of donations for this electoral campaign. They include donations from minor donors (less than one hundred thousand lekė) and donations exceeding one hundred thousand lekė. Donors of less than one hundred thousand lekė each are not required by law to declare that they have no conflict of interest with the recipient of their donation. In total, these minor donors have donated to SMI an amount of 5 715 966 lekė. Based on the Electoral Code, donors may donate less than one hundred thousand lekė. SMI has also declared having received I kind contributions, such as office space for electoral purposes in the amount of 427 776 lekė. The party however, has not explained how it has calculated such contributions, and has not identified the respective donors in this case.

Comments and Analysis: ODA

Donations for SMI, Election Campaign 2017 (in ALL)
Comments and Analysis: ODA

Donations that exceed one hundred thousand lekė and are described by Article 90 of the Electoral Code have reached the amount of 7 823 986 lekė in total. This party was ranked on the top in these elections for the largest number of donors. It had a total of 55 individual donors, none of whom was a commercial or legal entity.

Donors of more than 100 000 ALL each for 2017 electoral campaign of the Socialist Movement for Integration

While the Electoral Code does not allow electoral subjects to receive donations from media organizations or shareholders thereof, an amendment made to the Political Parties Law on the eve of elections, required private national, local, and satellite radio and televisions to provide electoral subjects with free advertising for the parliamentary elections of 2017, including 90 minutes for the largest parliamentary majority and minority parties, 45 minutes for other parliamentary parties, and 10 minutes for non-parliamentary parties. This article, though, banned paid political advertising during the electoral campaign. The cost of free advertising for political parties was recognized as a fully deductible expense for purposes of tax calculations. In fact, such amendment was contested, arguing g that a simple law may not abrogate a qualified law, such as codes, including the Electoral Code. Even though the article was considered illegal, the political parties and televisions continued to declare having received free advertising. Thus, the SMI has declared has declared having received 22.5 minutes of free advertising from Top Channel TV, equal to 24 325 626 lekė. This is declared as Free Advertising Service, without providing the legal basis for this type of contribution.
The party’s own revenues of  13 490 647 are declared as a source of income for the SMI, including the membership fees, membership cards, membership in the SMI Youth Forum, sales of the party’s press, bank interests,  and party budget allocated to the electoral campaign.

Party's self-generated incomes for the electoral campaign by source (in ALL)
Comments and Analysis: ODA

The electoral expenditures, on the other hand, amount to 71 826 809 lekė, and they include: office rent, free TV advertising, paid TV advertising, publications, consultancy services, promotional materials, advertising and expenses for electoral rallies and meetings. The SMI has declared to have made administrative expenditures of a general nature, and not necessarily for the electoral campaign.

Expenditures of SMI for the 2017 electoral campaign (type of expenditures and method of payment) in ALL

The difference between the expenditures and incomes corresponds with unpaid bills during the reporting period, i.e. the electoral period.
You may find the Incomes and Expenditures for the electoral subjects under the 2017 Electoral Spending section on the Open Data Albania portal.

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    Contributer: Open Data Albania
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