The Foreign Investors Association in Moldova is raising the alarm overwhat it sees as "corrupt and arbitrary behavior" by the government. Theinvestors say that new law changes run against the principles of aconstitutionally democratic state. Industrial output in Moldovacontinues decreasing, but is up in neighboring Transdniestr
CHISINAU (Tiraspol Times) - Just as Transdniestria is categoricallyrefusing to let itself come under Moldovan rule, foreign investors arenow also thinking twice about investing in Europe's poorest country.And many of those who have already done so are now planning to leave
CHISINAU (Tiraspol Times) - Just as Transdniestria is categoricallyrefusing to let itself come under Moldovan rule, foreign investors arenow also thinking twice about investing in Europe's poorest country.And many of those who have already done so are now planning to leave.
On Monday, Moldova's Foreign Investors Association (FIA) announcedthat newly approved parliamentary amendments to the Competition Law"run against the principles of a constitutionally democratic state anda market economy based on free competition."
Moldova is run by an ineffective and corrupt Communist government,led by former Soviet-era General Vladimir Voronin. During the Voroninclan's grip on Moldova, the President's son, Oleg Voronin, hasrepeatedly been identified as the single richest man in the country.
According to the Foreign Investors Association, the new restrictionsto Moldova's Competition Law "will undoubtedly deteriorate theinvestment climate in the country."
- Presumption of guilt
Whereas other European countries subscribe to the tenet that someoneis innocent until proven guilty, Moldova's Communist-led state hasturned the principle on its head and now assume that a company isguilty of breaking the law until it proves its own innocence.
Under the latest changes to the law, Moldova's National Agency forCompetition Protection (NACP) will have near-unlimited power to applyrandom penalties to companies, and this is not a good idea in a countrywhich has been classified as a "failed state" for two years in a rowand which is known to human rights organizations as one of the mostcorrupt in Europe.
In a public statement of protest, the foreign investors told thepress that Moldova's adopted amendments "infringe upon basicprinciples" and that "they deprive businesses of the presumption ofinnocence, thereby giving NACP an unlimited authority and the right toset up huge fines and penalties. At the same time, the draft amendmentsprovide a vague definition to what should be considered a market, whichis non-compliance with the international practice on one hand, whilegranting the NCAP the right to adopt its own the methodology fordetermining company "dominant" position on the other,” said theAssociation's statement.
On Monday, Moldova's Foreign Investors Association (FIA) announcedthat newly approved parliamentary amendments to the Competition Law"run against the principles of a constitutionally democratic state anda market economy based on free competition."
Moldova is run by an ineffective and corrupt Communist government,led by former Soviet-era General Vladimir Voronin. During the Voroninclan's grip on Moldova, the President's son, Oleg Voronin, hasrepeatedly been identified as the single richest man in the country.
According to the Foreign Investors Association, the new restrictionsto Moldova's Competition Law "will undoubtedly deteriorate theinvestment climate in the country."
- Presumption of guilt
Whereas other European countries subscribe to the tenet that someoneis innocent until proven guilty, Moldova's Communist-led state hasturned the principle on its head and now assume that a company isguilty of breaking the law until it proves its own innocence.
Under the latest changes to the law, Moldova's National Agency forCompetition Protection (NACP) will have near-unlimited power to applyrandom penalties to companies, and this is not a good idea in a countrywhich has been classified as a "failed state" for two years in a rowand which is known to human rights organizations as one of the mostcorrupt in Europe.
In a public statement of protest, the foreign investors told thepress that Moldova's adopted amendments "infringe upon basicprinciples" and that "they deprive businesses of the presumption ofinnocence, thereby giving NACP an unlimited authority and the right toset up huge fines and penalties. At the same time, the draft amendmentsprovide a vague definition to what should be considered a market, whichis non-compliance with the international practice on one hand, whilegranting the NCAP the right to adopt its own the methodology fordetermining company "dominant" position on the other,” said theAssociation's statement.