MILS: News from the FYROM, 97-06-23

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From: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>

CONTENTS

[01] MACEDONIA - A ROLE-MODEL FOR COUNTRIES UNDERGOING TRANSITION

[02] CORRIDOR NORTH-SOUTH: `THEMATIC FOCUS OF HELSINKI CONFERENCE'

[03] PRESSURING THE MEMBERSHIP OF POLICE TRADE UNION

[04] CRIMINAL CHARGES, INVESTIGATIONS, ...

[05] NOVA MAKEDONIJA: `SKOPJE AIRPORT TO BE CLOSED'

[06] DNEVNIK: `RUSSIAN GAS TO ARRIVE IN AUGUST'

[07] RECORD PRODUCTION AT `FENIMAK' AT KAVADARCI

[08] IMRO-DPMNE: `WITHDRAWING BILL ON FLAGS'

[09] ROSS-ROT SEMINAR AT OHRID - MACEDONIA LIFTS ITSELF OUT OF THE PITS OF THE CRISIS

[10] LIONS' CLUB PROMOTION IN SKOPJE

MILS SUPPLEMENT

[11] `Paying Tax At the Border' (`Nova Makedonija' - 20th June 1997)

MILS NEWS

Skopje, 23 June, 1997

[01] MACEDONIA - A ROLE-MODEL FOR COUNTRIES UNDERGOING TRANSITION

Macro-economic stability as one of Macedonia's achievements, it has been assessed, should be complemented by an economic strategy addressing two of the key issues: unemployment and the decline in social standings. Talks with US Congress representatives and the Foreign Policy Committee also focused on the `University of Tetovo' and President Gligorov indicated that it had been clarified that there is a red line which is not be crossed as the opposite would entail the loss of national sovereignty and the beginning of its disintegration.

With respect to Macedonia's candidacy for temporary UN Security Council membership, both states Gligorov visited had expressed their encouragement though they have not made any explicit statements in terms of casting their vote in favour of certain candidate as this would violate regulations. Upon assessing his visit to China, Gligorov said to the press yesterday that talks had resulted in realizing the necessity of focusing bilateral relations on economic issues, paralleled by the gradual generating of possibilities to intensify trade and development.

[02] CORRIDOR NORTH-SOUTH: `THEMATIC FOCUS OF HELSINKI CONFERENCE'

Besides this, Macedonian participants intend to submit their proposal for entering corridor 10 (North-South / Budapest-Athens) into the European register of capital corridors. Along with the East-West Corridor, this connection has been entered into such a register during the Crete Conference. Such a motion would be of considerable importance to Macedonia since both corridors would intersect in our country.

[03] PRESSURING THE MEMBERSHIP OF POLICE TRADE UNION

This again entailed a reply by the Police Trade Union last Friday, concordant to which the legitimacy of their Chairman was being challenged to pressure the Trade Union's membership into abstaining from striking and supporting Union demands at tomorrow's referendum. While emphasising that such views represent a direct interference into Trade Union matters and an obstruction of its activities, it is being underlined that the Trade Union fully supports Manchev as its only legitimate Chairman - and that as such only the Federal Congress is entitled to suspend him. As regards the statement made by the Ministry that the collective agreement was being accepted, it has been denoted as unrealistic since it contains three debated issues which represent the motives for the announced strike.

[04] CRIMINAL CHARGES, INVESTIGATIONS, ...

So far Macedonian media have pointed out repeatedly that during the mandate of the above mentioned, service vehicles had been purchased at a price exceeding their market value by far. The same would apply to the production of ID documents and passports; artifacts, etc. All this has cost the Ministry several ten million dollars. `Vecher' also states (`off the record' again) that former Foreign Secretary Ljubomir Frchkovski is to appear as a witness of the state, since he had been heading the Ministry during the mandate of Sazdov.

What is then to be said about the `public holy cow' that Sazdov and Frchkovski are cousins? In this sense, the aforesaid daily has repeatedly quoted unofficial data confirming that the Public Revenues Dept. has completed the extensive and thorough investigation of Kratovo-based `Sileks.' The inquiry is reported to have detected a series of violations of rules regulating accounting and financial management, especially in terms of withholding tax and payroll contributions worth several ten million DM. It is common knowledge that this company is being headed by SPM leader and Member of Parliament Ljubisav Ivanov - Singo, who is also a coalition partner to the SDSM and Head of the Macedonian Football Association.

[05] NOVA MAKEDONIJA: `SKOPJE AIRPORT TO BE CLOSED'

All this is happening in spite of that fact that the Directorate of Civil Aviation (the umbrella-organisation also covering the Flight Control Dept.) has been generating significant incomes... Such a several-month-long financial vacuum is being attributed to the incapability of the Finance Ministry to transfer all funds (3 million dollars for rendering services to international air lines flying in/across Macedonia) into the country. Thus they keep `catching dust' in Zurich, since January this year. By now they should have been transferred via EUROCONTROL, but for unknown reasons the Ministry of Finance has not yet compiled an official documents claiming these funds.

The management at Flight Control states that besides subsistent expenditures, their Dept. also owed a considerable amount in pay to hired employees from FR Yugoslavia and Bulgaria, who may resign if conditions are not improved. Estimates reveal that a total of 20 million dollars in revenues per annum is to be generated by rendering flight control services. Of these 10 million dollars are being allocated for operations of the Civil Aviation Directorate. Bearing in mind the fact that remaining funds should flow into the National Budget, the attitude exhibited by the Government appears even less comprehensible - the Dept. of Flight Control claims.

[06] DNEVNIK: `RUSSIAN GAS TO ARRIVE IN AUGUST'

The consensus on all these issues has so far delayed the forming of `GA-MA' as a shareholding company for about 6 months. According to `GA-MA' Director Mihajlo Kostovski this is to be entailed by the second project phase called `Skopje Consumers' or `GA-MA 100'. For this the EBRD has granted Macedonia a loan of 60 million dollars. Besides this, the share packages of all project partners are to reach the following structure by the end of this year: 51% will be held by the Government, 25% by the Russian partner, 15 - 16% by `Makpetrol' and 8 or 9% by the EBRD. Such a structure is to be maintained over the first five years, and then be followed by the privatization of `GA-MA' by selling Government (in spite of having invested less than 51% of capital) and EBRD stocks.

[07] RECORD PRODUCTION AT `FENIMAK' AT KAVADARCI

[08] IMRO-DPMNE: `WITHDRAWING BILL ON FLAGS'

[09] ROSS-ROT SEMINAR AT OHRID - MACEDONIA LIFTS ITSELF OUT OF THE PITS OF THE CRISIS

As regards unemployment and evaluations determining its rate as app. 30% of the population, Minister Fiti stated (according to `Vecher') that this rate is lower in practice and varies somewhere between 20 and 22 % concordant to data compiled by his Cabinet and the Macedonian Academy of Sciences and Arts (MANU). In conditions like these, as much as 25% of Budget means fall off to social transfers. What it missing in this respect are efficient monitoring mechanisms following up on the utilization of these means. Thus, Minister Fiti stated, the Government would prepare a package of measures to review and complete the registers of those indeed requiring social services. Upon discussing economic issues, Maurizio Locatelli (Head of the PHARE Implementation Office in Macedonia) delved into EU experience in terms of what is quintessential during the transition into a market- economy order - including the accepting of all incorporated risks and challenges.

A noteworthy speech on threats to privatization and perspectives of the country's future economic development was given by MANU Chairman Ksente Bogoev. The same could be said about the address given by the Macedonian Secretary of the Interior Tomislav Chokrevski, who did not ascribe the maintaining of stability in Macedonia to chance, but rather to the prevailing of a philosophy advocating the respecting of human rights and liberties in its legislation - in addition to the advocating of a modern civil society. He did not deny the existence of crime in Macedonia (e.g. arms trafficking, drug trafficking and money laundering), stressing at the same time however that the state has attacked these problems with an extensive programme, in its endeavour to provide safety to the citizens and the protection of their property, as well as that of democracy in a pluralistic society. Conflicts, their prevention and resolving were addressed by representatives of UNPREDEP, the OSCE and the Centre for Inter-Ethnic Relations at the `Ss. Cyril and Methodius' University.

[10] LIONS' CLUB PROMOTION IN SKOPJE

Media report that the basic objective of this institution is the advocating of humanism, the spreading of respect and understanding among people and countries. The motto of all activities is `We Serve' and the slogan complements this with `Liberty, Knowledge and Security for Our People.' Priority issues to be addressed by this organisation are drug abuse, integrating people with disabilities, cooperating with social services, health institutions, etc. The Club's propositions prohibit the admission of any politically active individuals, thus the members' list includes the names of former Minister Vlado Kambovski, Drama Theatre Director Blagoja Chokrevski, former Minister Jovan Andonov, businessman and former Mayor of Skopje Ljupcho Nikolovski - Fufo, Vanja Bitoljanu - former Director of `Palair Macedonian', Dr. Lazar Lazarov, etc.

MILS SUPPLEMENT

[11] `Paying Tax At the Border'

(`Nova Makedonija' - 20th June 1997)

The nationally-owned enterprise entrusted with the handling of residential and development real estate has imposed tax on citizens entering and leaving the country. This Thursday public media received the news that as of 25th June fees would be charged for all passengers and vehicles entering and leaving Macedonia at all border crossings of the Republic. The decision to do so, as well as the determining of the actual amount of means requited to maintain all objects, installations, facilities and services at the border, has been put in the hands of the nationally-owned Enterprise for Handling Residential and Development Real Estate.

In spite of the fact that this decision has been publicized via the Official Gazette of the Republic of Macedonia some time ago (on 13th February), its enactment has been postponed until only fairly recently. It has quite obviously taken a long time to `digest' this resolution, even by those who created it. The population however do not have any vote on this issue; they merely have to make sure that they pay upon leaving the country - and put enough aside so that they will be permitted to return home... Here we go again - another case study for the Constitutional Court of Macedonia. This institution has to assess whether a nationally-owned enterprise is collecting tax as a reimbursement (!) for some sort of imaginary, non-existent services which citizens are to benefit from upon entering and leaving the country.

It is indeed difficult to determine the nature of services: could this apply to the several hours of waiting for the border traffic flow to decrease so that one can experience the keen pleasure of being controlled and checked over and over... It may be the case that the state is entitled to tax border services through one of its enterprises for each passenger and vehicle, should the Constitutional Court not object to such practice - as has been the case with so many other laws and decisions. This has proven to be the least popular way of filling up the till. What is the regular laughing stock throughout democracies all over the world has become common practice in our country. Here is another way to create a genuine chaos at border crossings during the peak of the summer travelling season. Due to this `surprise' (!!!!) offered to the Macedonian population and the not meeting of certain bureaucratic requirements, we will enjoy the even longer queues at the border and the longer `rest' taken while waiting to cross the border. It does not require mind-boggling arithmetic skills to conclude that the paying of the charge (which is not too meager: 300 denars in both directions for a four-member family in one vehicle) will not only create first-rate traffic jams, but that it may also cost much more than earn us.

This is due to the fact that the implementation of this idea will require additional employments, new regulations, etc. in order to avoid the proverbial shot in the foot. We also need to bear in mind that those collecting the charges will adhere to the motto `one for me, one for the state, one for me...' The icing on this `gateau' comes in the shape of another question: what happens if those re-entering the country simply forget to put aside enough denars - or do not have any hard currency funds. Will they be prohibited to return into their own country. Should the state budget be empty, this is the worst variant for it to end up refilled. What is even worse, does such a concept not - even partially, formally and legally - limit our freedom of movement.

Threats of spreading any livestock epidemics have no longer been an issue for a long time, which is why the `desinfection barriers' are a thing of the past... Nobody however thought of this and of subsequently suspending one more tax law initiated by the above mentioned national facility for handling residential and development real estate property.

(end)

mils news 23 June, 1997

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