5th November 2012

Party Funding system to be changed

The Government has proposed the Bill on Political Parties' funding (zákon o hospodaření politických stran) that specifies the Act on Political Parties (zákon o politických stranách). The Bill has been prepared in accordance with the governmental anti-corruption strategy. The Bill regulates the process of party funding auditing (currently, a financial report should be carried out once a year and is kept by the Chancellery of the Chamber of Deputies). Political parties should declare any revenues stemming from real estate lease and precisely describe any donation provided by party members as well as donators out of the party. The Bill also stipulates the obligation to provide a report of party campaign funding. According to the analysis of the current state of affairs, a new system of party funding auditing should be introduced. Currently, the Chamber of Deputies keeps records and informs political parties if an obligatory part of the financial report is missing. In the future, a new office of party funding auditing should be set up (in case, the Supreme Auditing Office is not designated to do so) and control the report in terms of correctness. The Bill also emphasizes conditions for choice of independent auditors and transparency and open access to financial reports by citizens and NGOs. 
The Bill has been prepared in accordance with GRECO recommendations (Group of State against the corruption, the Council of Europe’s initiative).
The Bill has undergone the internal commentary procedure. The Government should discuss the amendment till the end of the year 2012.
For further information regarding the Bill, click here (explanatory report).

Members of the American Chamber of Commerce in the Czech Republic