Under international law, discrimination is any difference of treatment based on a prohibited  ground that does not have an objective and reasonable justification. Discrimination impairs  the exercise of other human rights on an equal basis. Prohibited grounds can include any 
personal quality, characteristic or circumstances upon which arbitrary distinctions are made  such as: ethnicity, religion, national or social origin, language, physical appearance, descent,  gender, gender identity, sexual orientation, age or disability, religion or belief, domicile, or any other status. 
A difference of treatment may be considered as having an objective or reasonable  justification if it is for a legitimate purpose compatible with the human rights obligations of the state.
A legitimate purpose could be related to public health or security, or public policy concerns such as health and safety. However, in order for a difference of treatment to qualify as objective and reasonable it should also be proportionate to the aim it seeks to achieve.
The European Court of Human Rights has been insistent that unfavorable treatment based on prohibited ground will require particularly weighty justification to be compatible with human rights standards.
International and European anti-discrimination law prohibits both direct and indirect discrimination. The latter occurs when an apparently neutral law, procedure or practice 
results in a disproportionate disadvantage for, or has a disparate impact on, a particular group without any objective or reasonable justification. 
Moldova is party to several human rights treaties prohibiting discrimination. These include the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR), the UN Convention on the Elimination of All Forms of Discrimination against women (CEDAW), the UN Convention on the Elimination of All Forms of Racial Discrimination (CERD) and the European Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR) Most recently in September 2010 Moldova ratified the United Nations Convention on the Rights of Persons with 
Disabilities. 
What these obligations mean in practice is that Moldova must: 
  • Prohibit direct and indirect discrimination on all grounds and in all areas of life; 
  • Set up independent national anti-discrimination bodies to monitor and make recommendations regarding respect for non-discrimination legislation that have effective investigative powers, a mandate to examine individual complaints of discrimination in both the private and the public sector and take binding and enforceable decisions, and adequate staff and funds; 
  • Provide access to effective judicial remedies for victims of discrimination including measures such as the provision of legal aid and representation by non-governmental organizations; 
  • Ensure effective monitoring of the impact of legislation and policies on different groups and collection of accurate disaggregated data to use in identifying and addressing discrimination. 
Although discrimination on the grounds of sexual orientation is not explicitly mentioned in the non-discrimination provisions of the ICCPR and the ECHR, both instruments include nonexhaustive lists of prohibited grounds of discrimination, noting that States must combat discrimination on any grounds. Moreover, the European Court of Human Rights has clarified that the list or prohibited grounds included in Article 14 of the ECHR covers sexual orientation and the Human Rights Committee has reached the same conclusion with respect to the non-discrimination provisions of the ICCPR.10
Crimes which fall under the definition of “hate crimes” are the most insidious manifestation of intolerance and discrimination. The Organization for Security and Co-operation in Europe (OSCE) has defined hate crimes as “criminal offences, including offences against persons or property, where the victim, premises or target of the offence are selected because of their real or perceived connection, attachment, affiliation, support or membership of a group”. 
The European Court of Human Rights (ECHR) has found that states have the duty to take all necessary steps to unmask possible racist motivations behind crimes: 
Where there is suspicion that racial attitudes induced a violent act it is particularly important that the official investigation is pursued with vigour and impartiality, having regard to the need to reassert continuously society's condemnation of racism and ethnic hatred and to maintain the confidence of minorities in the ability of the authorities to protect them from the threat of racist violence. 11 It also found that crimes perpetrated with a racist bias cannot be treated as common crimes because they are particularly destructive of fundamental rights.12The European Commission against Racism and Intolerance (ECRI) has addressed the role of the police in combating racist offences and monitoring racist incidents. In its General Policy Recommendation No. 11, ECRI calls on the governments of Council of Europe member states 
to: 
  • ensure that the police thoroughly investigate racist offences, including by fully taking the racist motivation of ordinary offences into account; 
  • establish and operate a system for recording and monitoring racist incidents, and the extent to which these are brought before prosecutors and are eventually qualified as racist offences; 
  • encourage victims and witnesses of racist incidents to report such incidents.


Law No 312-XIII dated 08.12.94

Published in the Official Gazette of the Republic of Moldova No 7/77, dated 02.02.1995

Note: the Law was republished in the Official Gazette, in a special issue dated 09.12.2005, page 4.
Note: the Law was republished anew in the Official Gazette, No 25 – 26, dated 21.02.2003, page 5.
Note: The word “collaborator” used in the wording of the Law shall be replaced with the word “employee”, in line with Law No 1063-XV, dated 17.05.2002.
Note: See the Parliament Decree No 313-XIII dated 08.12.94 “On the implementation of the Law on the Court of Accounts”.

The Parliament adopts this Law.

Chapter I
GENERAL

Article 1. – (1) The subject of this law refers to the basic provisions on the external financial control carried out by the Court of Accounts.

(2) The goals of this law are:
a) Ensuring observance of the formation, management and use of the public financial resources;
b) Ensuring the use of the public assets in a legal way, in line with their destination;
c) Ensuring an economical, efficient and effective use of the public assets;
d) Ensuring a legal governing of the Court of Accounts.

Article 2. – The terms used in this law designate the following:

Objective of the control – a precise declaration of the things a control seeks to realize and/or the question to which the control is supposed to give an answer;

Thematic control – a control of one or more financial aspects related to the operation of the entity subject of the control or the use of the public assets;

Policies followed by the governing programme – a set of measures meant to contribute to the realization of a number of goals using the corresponding resources during a set period of time;

Specific programme – use of the appropriated finances for a concrete action or a set of coherent actions undertaken to achieve an objective or a set of well defined objectives with respect to which there exist performance indicators and evaluation indicators of the envisaged outcomes.

Organisation – an efficient use of the human resources, economic structures and processes for the realization of certain objectives;

Management policies – decrees , actions and rules, observed in monitoring, accounting and using of human, financial and other type resources. The management policy refers to the internal operations of the institution;

Economical approach – minimising costs of resources used in a certain activity without an impact on the effective realization of set objectives (the quality);

Efficiency – relationship between the outcomes and resources used for the purpose;

Effectiveness – the degree to which set objectives are realized and the relationship between the envisaged impact and the real one;

Public property – total set of ownership rights and duties belonging to the state, standing for a closely linked totality of assets and equity valued in money, and which is managed by assigned legal entities;

Financial revision – checking accuracy of financial statements, observance of the law and rules relevant to the economic financial operations;

Entities subject to controls – institutions subject to controls;

Control (audit) procedures – tests, guidelines and actions to be applied during the control (audit) process in a systematic and reasonable way;

Findings – specific aspects identified by the auditor as contributing to the realization of the control objectives;

Pertinent control evidence – sufficient and relevant data facilitating the realization of the control objectives. The data are highly qualitative and inspire trust and security;

Relevant control evidence – pertinent data referring to the control objectives, which are meant to back up the findings;

Reasonable control evidence – economical, efficient and effective data from the point of view  of their cost.

Performance control (audit) – and independent evaluation or examination of the extent to which an activity, a programme or an institution operates in an economical, efficient and effective way;

Subsequent control - a control of an entity subject to control at the end of an economical financial operation;

Verification control - a control of the partners of an entity subject to control with the purpose to verify the correctness of undertaken operations;

Standard (norm) – a document establishing the minimum orientation of a control (audit) and determining the control (audit) stages and procedures;

External control – a control carried out by an empowered body displaying activity in conditions of organizational and functional independence with respect to entities subject to control.

Article 3. – (1) The Court of Account is the supreme state financial control body and carries out its activity in line with the Constitution of the Republic of Moldova, this Law and other legal acts regulating this area. The Court of Accounts enjoys an organizational and functional independence.

(2) Annually, before July 15 of the year, the Court of Accounts submits a report to the Parliament on the management of public finances during the expired budgetary execution. The report refers to identified violations and measures undertaken for their correction. The President of the Court of Accounts makes the presentation of the annual report during a special session of the Parliament. The Parliament and deputies of the Parliament shall receive copies of the annual report at least 15 days in advance to the special session of the Parliament.

(3) The Official Gazette of the Republic of Moldova publishes the annual report of the Court of Accounts within 15 days since the presentation of the report in the special session of the Parliament.

(4) The Court of Accounts is a legal entity and has its own stamp with the national coat of arms on it.

(9) The Court of Accounts has its headquarters locate in the capital of the country.

Article 4. - In carrying out its external financial control the Court of Accounts observes the following principles:

a) Legality;
b) Responsibility;
c) Integrity;
d) Objectiveness and independence;
e) Competence;
f) Rigorousness;
g) Perseverance;
h) Clear disclosure of findings;
i) Transparency.

Article 5. – (1) The Court of Accounts approves its activity programme in an autonomous way.

(2) Controls of the Court of Accounts are initiated ex officio and may not be suspended.

(3) Parliament decrees requesting the Court of Accounts to carry out certain controls within its terms of reference are binding.

(4) Once in a quarter of a year, at the request of any parliamentary faction, the Court of Accounts can make an additional control of the public funds management without a Parliamentary decree for that. The Court of Accounts shall report to the Parliament the outcomes of such a control within at the most 60 days since the day of the request.

(5) No other public authority can oblige the Court of Accounts to carry out controls or revisions.

Article 6. – (1) The Court of Accounts submits additional reports to the Parliamentary standing commissions with findings of controls of special importance for the state requesting a Parliament decision hereupon.

(2) At the request of a parliamentary faction, a parliamentary commission or a deputy the Court of Accounts shall submit, within 5 days period of time, the documents, decrees and reports with the outcomes of controls made.

(3) Decrees of the Court of Accounts of the Republic of Moldova issued based on controls shall be published in the Official Gazette of the Republic of Moldova within 10 days following their effectiveness. Decrees that have been appealed shall be published only when the final ruling of the court has been made.

Article 7. – (1) The Court of Accounts shall have free access to any natural person or legal entity’s acts, documents and information it needs to perform its control functions.

(2) All natural people and legal entities controlled by the Court of Accounts are obliged to submit in due terms the requested acts, documents and information and ensure access to their premises.

(3) If the Court of Accounts comes across information, which constitutes state, official, commercial or personal secret, it is obliged to observe its confidentiality and disclose it exclusively to the authorized agencies.

Article 8. – The Court of Accounts shall have its own budget envisaged as distinct item in the state budget and is entitled, on a monthly basis, to draw funds from the State Treasury account within the approved limits.

Article 9. – The organisation structure and the staffing of the Court of Accounts are established by the Parliament at the proposal of the President of the Court of Accounts.

Article 10.  – (1) The Court of Accounts may participate to the activities of respective specialised international organisations and become member of such.

(2) The Court of Accounts may cooperate with respective specialised international organisations and exercise on their behalf control of the management of funds provided to the Republic of Moldova if the international treaties, conventions or other agreements stipulate this power.

Article 11. – (1) The Court of Accounts, if necessary, may cooperate with the General Prosecutor’s Office, interior affairs bodies and other law enforcement and control bodies. In doing so it shall avoid interfering into their activities related to the public prosecutor’s powers, investigation, inquiry and justice.

(2) Whenever controls identify violations, the investigation of which constitute the responsibility of other control or law enforcement bodies, the Court of Accounts shall are develop control acts for each separate violation and submit them to the relevant bodies obliged to undertake measures.

(3) The Court of Accounts is entitled to request and to use in its activity control materials developed by other control and law enforcement bodies with respect to entities subject of control and the latter are obliged to submit them at its first request.


Chapter II
ORGANISATION AND OPERATION OF THE COURT OF ACCOUNTS

Article 12. – The Court of Accounts shall comprise 7 members, out of which 3 shall represent the parliamentary majority and 4 shall represent the parliamentary opposition.

Article 13. – The Court of Accounts shall be run by the President and the deputy President of the Court.

Article 14. – The President of the Court of Accounts shall be appointed by the Parliament for a five - year mandate with the total vote of elected deputies. The candidate shall be proposed by the Chairman of the Parliament who makes the proposal subsequent to an obligatory consultation with the parliament factions constituted within the law.

(2) The President of the Court of Accounts proposes candidates for the Court members at the recommendation of the parliament factions constituted within the law. Each parliamentary faction has the right to recommend at least 2 candidates.

(3) Members of the Court of Accounts shall be appointed by the Parliament at the proposal of the President of the Court of Accounts for a five-year term with the total vote of elected deputies.

(4) A person shall exercise the function of a member of the Court of Accounts for two mandates at the most, which can be consecutive.

(5) In exercising their mandates the members of the Court of Accounts are independent and immovable during its total term.

(6) Members of the Court of Accounts could be citizens of the Republic of Moldova with relevant higher education in economics or law and a work experience in the last tens years adequate for the activity of the Court of Accounts.

(7) The position of the President, the deputy President and the member of the Court of Accounts is incompatible with any business activities, or part-time jobs with the exception of teaching, scientific or other creative work, carried out in their spare time.

(8) Before taking the office the President, the deputy President and the members of the Court of Accounts shall make the following swear: “I swear to faithfully serve the Republic of Moldova, to observe the Constitution and the laws of the Republic of Moldova, to protect the state property, democracy and the welfare of the people”.

(9) A vacancy of a member of the Court of Accounts may take place in the following cases:
a) resignation;
b) expiration of the mandate term;
c) sentencing through a final court decision;
d) loss of citizenship of the Republic of Moldova;
e) health reasons;
f) reaching the age of 65 years.

Article 15. – (1) The President of the Court of Accounts proposes the Parliament for approval the candidate of the deputy President of the Court out of the members of the Court.

(2) The Parliament shall confirm a member of the Court in the function of the deputy President of the Court of Accounts exclusively for the duration of his mandate of a member of the Court of Accounts.

Article 16. – The President and the deputy President of the Court have the right to attend the sessions of the Parliament and the Government.

Article 18. – (1) A function of an employee of the Court of Accounts is incompatible with any other paid public or private function.

(2) The Parliament may recall the President and the members of the Court of Accounts of their office ahead of term by majority vote of elected members of Parliament in the event of unsatisfactory fulfilment of their official duties, violations of law or excess of their commission.

Article 19. –The employees of the Court of Accounts shall be appointed and relieved of their functions by the President of the Court.

Article 20. – In carrying out controls the Court of Account may contract highly qualified experts to deliver consultation and share expertise in different areas and remunerate them in compliance with the law in force.

Chapter III
CONTROL FUNCTIONS OF THE COURT OF ACCOUNTS

Section I
General

Article 21. – (1) The Court of Accounts shall exercise control over the formation, management and use of the public funds and the public property management. As the case may be the Court of Accounts may seek services individual auditors or audit companies. The control shall be carried out in line with constitutional provisions and modern accounting methods.

(2) By carrying out control the Court of Accounts is pursuing observance of laws and implementation of the principles of rational use, expediency and efficiency in managing public tangible assets and funds.

Article 22. – In exercising its functions the Court of Accounts shall carry out control over the following:

a) Formation and use of the state budget, the state social insurance budget funds, the budgets of the territorial administrative units and the funds of compulsory medical insurance;

b) Formation, uses and management of the special funds and the state treasury funds;

c) Public debt formation and management, compliance with the state guarantees for domestic and foreign loans;

d) The public institutions use of grants and funds allocated by the external donors for the implementation of common programmes with the Republic of Moldova;

e) Use of budget allocations for investment purposes, as well as subsidies and other forms of state financial assistance;

f) Execution, justification and efficiency of intergovernmental treaties in the economical financial area;

g) Process of the ownership change and privatisation of the public property;

h) Activity of other control bodies and of the internal control bodies;

i) Money issue, use of public loans and foreign exchange;

j) Other activities, stipulated by organic laws to fall under the responsibility of the Court of Accounts.

Article 23. The following shall be subject to the financial audit:

a) Office of the Parliament, office of the President of the Republic of Moldova, the Constitutional Court, the State Chancellery, the Supreme Court of Justice, the Economic Court, the Prosecutor General’s Office, the National Commission of Securities, the Central Election Commission.

b) Specialised central public administrative authorities, other administrative authorities, the National Bank of Moldova and the commercial banks with state shareholdings exceeding 50 percents.

Article 24.  – The Court of Accounts shall also carry out controls of the legal entities irrespective on their ownership status and legal charter if these entities:

a) Benefit of state guarantees on loans, subsidies and other state assistance;

b) Carry out management on a contract basis of the assets belonging to the public property;

c) Hold integral social capital or more than 50 percents of their social capital belongs to the state.

Article 25. (1) The Court of Accounts carries out subsequent controls in its office or at site, which include financial revisions, thematic controls and performance controls (audits).

(2)) Controls carried out in the office of the Court of Accounts shall be based on documents and information available in the Court of Accounts as well as on documents requested in a written form by the President (deputy President) of the Court of Accounts from the entity subject to control, or from other entity in possession of the needed documents, irrespective on its ownership, legal and organisation status.

(3) Controls at the site shall be carried out based on a control order and a control programme, signed by the President (deputy President) of the Court of Accounts.

(4) In the need to confirm certain evidence, which is not totally relevant, the President (deputy President) of the Court of Accounts shall issue decrees requesting verifying controls over any entity subject of control.

(5) The Court of Accounts shall make comments on the draft of the state budget law, the draft of the law on the state social insurance budget and the funds of the compulsory medical insurance for the respective year.

Section 2
Control procedures

Article 27
(1) The Court of Accounts shall control, either in its offices or in the field, the financial reports submitted by the controlled entities.
(2) The control/audit procedures and other related actions are defined by the standards (norms), developed and adopted by the Court of Accounts in compliance with the law in force.
(3) The Court of Accounts employees, responsible for the control procedures, shall draft control reports (documents) on the identified financial violations and submit them to the controlled entity for commentaries and objections.
(4) The control reports shall be examined by the Court of Accounts in the presence of representatives of the respective public authorities. The failure of public authorities’ representative to show up, unless they have well grounded reasons, cannot prevent the Court of Accounts from passing the decree, if they have been notified in the stipulated way.
(5) The Court of Accounts shall rule decrees on these reports in compliance with the law in force. The Court of Accounts decrees represent the main method of providing the controlled entities, their superior bodies, and the society with independent information, solutions and guarantees on the legality, conformity and accuracy of the conducted economic and financial transactions and drafted financial reports, as well on the economy, efficiency and effectiveness of the use of public assets by the controlled entities. The decrees shall be clear and well documented.
(6) The decrees shall be concise and summarize the control results and evidence. The draft decrees shall be developed by the heads of Court of Accounts departments (directorates) on the base of control reports (documents), developed by controllers. They shall consist of the following items:
a) title of the decree;
b) overview on the background of the controlled activities, including the institutional background;
c) objectives of the controlled entity’s activity;
d) description of the methodology of evidence collection and analysis, specifying their sources;
e) activity assessment criteria;
f) the control findings or, at least, the data deemed as relevant for the decree addressees and users;
g) conclusions referring to the control objectives;
h) requirements and recommendations about the necessary corrective actions.
(7) The recommendations shall be made only if the control process identifies possible and efficient remedies for the committed violations. They shall present the main directions of the proposed changes, avoiding a detailed description. The draft decree shall clearly stipulate the name of the person, who committed the violations and the name of the person, responsible for their remediation.
(8) The draft decree shall be examined by the Court of Accounts members together with the control team, project authors, representatives of the controlled entity, and other people, as decided by the President of The Court of Accounts. The Court of Accounts members can request the opinion of independent experts (specialists) in form of consultations, conclusions, or recommendations.
(9) The Court of Accounts members may modify the conclusions and recommendations stipulated in the draft decree if the controlled entity or another person submits new evidence. The draft decision may be revised and changed substantially, if the new evidence greatly impacts the control findings. In such a case, the new decision shall be re-examined together with the controlled entity.
(10) The Court of Accounts decrees are official documents and shall be executed by all public authorities and the sanctioned legal entities and individuals.
(11) The decrees passed by the Court of Accounts in relation to control reports shall be submitted to the budget executors of the appropriate public authorities. The violations shall be reported to competent superior body and, if needed, to the appropriate financial and legal authorities.
(12) The heads of public authorities shall inform the Court of Accounts about the undertaken measures in relation to the violations revealed during the control process.

Chapter IV
Other Functions of the Court of Accounts and Obligations of its Employees
   
Section 1
Other Functions of the Court of Accounts
Article 28 – Besides the control function, the Court of Accounts shall:
a) develop and approve regulations and documents on the Court of Accounts internal organization and its annual financial control programme;
b) comment on the draft state budget,  draft state social insurance budget, and draft compulsory health insurance funds;
c) change its internal organization, in compliance with the law in force and  within its legal competence and budgetary constraints;
d) discuss and submit its own draft budget as to integrate it into the state budget;
e) appoint heads of departments;
f) evaluate and analyze the activity reports of the Court directorates on a periodical basis;
g) demand penalization of people responsible for violating the use of public financial resources and request compensation of the country damages after providing the involved people with the opportunity to ground their position and justify their actions related to the  violations revealed during the control;
h) submit the revealed cases of financial violations with constituent elements of offences to the Centre for Combating Economic Crimes and Corruption;
i) request the dismissal of people who either committed severe law offences or failed to comply with the law.

Article 29
 The Court of Accounts shall carry out its duties having a membership of at least 5 members, and shall pass decrees on the conducted controls with the majority vote of its members.    

Article 30
(1) The President of the Court of Accounts shall:
a) run and organize the activity of the Court of Accounts, manage the financial resources according to its approved budget;
b) represent the Court of Accounts interests in the relations with public authorities and agencies, as well as with relevant domestic and international agencies, and guarantee stable relationships with them;
c) summon and chair the Court of Accounts sessions, monitor the implementation of the adopted decrees;
d) submit the Court of Accounts reports and comments to the Parliament;
e) appoint and dismiss the employees of the Court of Accounts in conformity with the law in force, including the employees engaged on a five-year individual contract;
f) guarantee order and apply disciplinary sanctions, if needed, in compliance with the law in force.
g) report to the Parliament about vacancies of the Court of Accounts, approves the list of vacancies, which will be occupied on a contest basis;
h) establish control teams that will operate only during the implementation period of the assigned tasks;
i) carry out the controls requested by the Parliament, as well additional controls that are not stipulated in the annual financial control programme of the Court of Accounts;
j) announce and carry outs contests to occupy the vacancies of the Court of Accounts directorates and departments;
k) authorize the conclusion of labour and service contracts, as requested by the Court of Accounts operation.
(2) In the absence of the President of The Court of Accounts the duties stipulated in paragraph (1) shall be carried out by the vice-president of the Court of Accounts.

Section 2
The Obligations of the Court of Accounts members
Article31
(1) The Court of Accounts members shall:
a) fulfil their obligations impartially and in compliance with the Constitution;
b) vote for or against the Court of Accounts documents; abstaining is not allowed;
c) report in writing to the President of the Court of Accounts about any situation that might run against the exercised mandate;
d) avoid any involvement in commercial advertising;
e) not participate in any activities contradictory to the principle of independence and dignity of the Court of Accounts membership;
f) keep the secret of vote and consultation;
g) submit, in compliance with the law, the income and real estate declaration.
(2) If the Court of Accounts member breaks any of the obligations stipulated in paragraph (1), he/she shall be dismissed.

Article32
The Court of Accounts members cannot be investigated, detained, arrested, or sanctioned with administrative and juridical penalties, unless requested by the General Prosecutor.

Chapter V
Rights, Obligations, and Liabilities of the Court of Accounts employees

Article 33
The Court of Accounts employees have the right, on the basis of the authorization issued by the CA President, to:
a) request any document or other materials related to the economic and financial activity of the public authorities.
b) freely enter the facilities, warehouses, shops, production halls and other places possessed by local authorities to check the existence and use of the state owned material and financial resources;
c) receive written and verbal explanations and copies of the documents related to the public authority’s activity from the directors and other responsibles of public authorities.
d) withdraw documents and seal the places where documents, money and other goods of the public authorities are stored;
e) request copies of financial excerpts from the National Bank and other commercial banks, where the state owns a share in the equity.

Article 34
The Court of Accounts members and employees are not allowed to:
a) be members of political parties or carry out public activities with a political character;
b) reveal the state, working, trade or individual secret.

Art 35
The Court of Accounts employees bear responsibility, in compliance with the law in force, for misrepresentation of the control results, submission of wrong data to the Court of Accounts or other institutions.

Chapter VI
FINAL PROVISIONS

Article 36
(1) The Parliament, Moldovan President, Government, ministries and departments, other public authorities, the National Bank shall submit to the Court of Accounts, on compulsory terms, the adopted normative acts, which refer to the operations listed in Article 22.
(2) The public authorities shall help the Court of Accounts officials to fulfil their tasks, assist them during the controls, and provide them with space, transportation and communication means, depending on the control requirements.

Article 37
The Parliament shall monitor Court of Accounts’ observance of the budget.

Article 38
Law no. 465-XII dated January 31, 1991 on the State Control Department of the Republic of Moldova shall be annulled.

Parliament Chairman-Petru LUCINSCHI
Chisinau December 8, 1994
No. 312-XIII.


On 26 December 2012, the Parliament of the Republic of Moldova (Moldova) passed Act No. 303/2012 on amending and supplementing of certain legal acts (Act No. 303). Act No. 303 entered into force on 29 March 2013 and inter alia changed Act No. 180/2008 on Labor Migration (Act No.180). The effected changes have a direct and positive impact on the legal right of residence of foreign citizens (expatriates) employed in Moldova or detached to exercise their labor duties in Moldova.

One of the major novelties implemented by the Act No. 303 is the complete removal of the immigration quota. Under previous legislation, the Moldovan Government was to determine on a yearly basis the maximum number of foreigners who were eligible for employment by local employers. Such quotas were compulsory for the Moldovan authorities dealing with the workforce's migration. Besides the fact that this quota was set at a rather low threshold (approx. 2,000 employees / year), there were years when the Government reached no decisions at all on the issue. Moreover, there were cases when local employers were simply prevented from employing foreign specialists due to the quota for the respective year being depleted.

Following the effected legislative changes, Moldovan employers hiring foreigners are no longer required to observe the immigration quota, but are instead guided by their internal requirements in employing foreign workers.

Act No. 303 enlarges the list of those classes of individuals who fall outside the scope of the Act No.180 and therefore do not require a temporary labor right while in Moldova or prior permission of the National Employment Agency in order to be employed by a local employer.

One such group includes foreigners who are no longer required to obtain a temporary labor right while in Moldova. These are foreigners: (i) who arrived to Moldova for scientific research  in the context of European or/and international projects (except for those employed on the basis of an individual labor agreement); (ii) who are holders of permanent rights of residence in Moldova; or (iii) who are holders of the temporary rights of residence for the purpose of family reintegration.

A second group includes persons who no longer require the prior permission of the National Employment Agency to be employed locally. Such foreigners should have come to exercise their duties in domains of high importance for the Moldovan state, namely: (i) persons who are invited for labor purposes by the Government or the Moldovan ministries, or central public bodies (e.g. national agencies, etc.); (ii) professionals who came to Moldova on the basis of treaties to which Moldova is a party; and (iii) foreign professionals participating in investment projects for the national economy, provided that such interest is confirmed by the local Ministry of Economy.

New rules are also implemented with regard to the so-called "detached" (RO detașați) employees. Detached employees can exercise their duties in Moldova for a period of up to 90 days (in total), calculated as of the individual's first entry into Moldova, and without being required to hold a temporary labor right.

For all cases of detachment of foreigners, such must be effected on the basis of an agreement of supply of works / services concluded between the Moldovan employer on the one side and a foreign employee / foreign employer on the other. An affidavit on the scope and duration of activity of the foreign employee in Moldova, accompanied by relevant copies, is compulsory and must be submitted to the Migration and Asylum Bureau and to the National Employment Agency within 3 business days as of the individual's date of entry into Moldova.

Besides the new features mentioned above, Act No. 303 changes [by increasing] the minimum thresholds that entitle applicants to longer temporary labor rights. In particular, the size of investment must be at least USD 100,000 (USD 10,000 under former legislation) in order to obtain a temporary labor right for a period of 2 years; at least USD 200,000 (USD 100,000 under former legislation) to be eligible for a temporary right of stay of 3 years; and at least USD 500,000 (USD 250,000 under former provisions) to be eligible for a temporary right of stay of 5 years; and at least USD 1,000,000 to obtain one for up to 10 years.

The recently adopted amendments appear to show the Moldovan authorities' openness and intention to be friendlier towards foreign investors currently implementing various projects in Moldova. At a first glance, this new stance would seem to be in line with the EU principles of free movement. However, it is very important that the adopted novelties are properly implemented, including by ensuring that all state officials are sufficiently familiarized with the new legislation and refrain from sending (unnecessarily) investors to courts to defend their lawful rights.

Law No. 861-XII of January 14, 1992
(Official Monitor, 1992, no. 1, art. 12)
(including amendments as of March 10, 1999)


Chapter I
General Provisions

Article 1. Tasks of the Law
This Law regulates the lease relations, establishing the objects and subjects of lease relations, their rights and obligations.

Article 2. Notion of Lease Relations
In lease relations, the Lessee possesses and uses, on a contractual basis and for a payment, the assets belonging to the person who leases them out.

Article 3. Persons who Lease Out
The owner, particularly individuals and legal entities from Moldova and other states, shall enjoy the right to lease out assets.
A Lessor may also be an individual or legal entity empowered by the Owner.

Article 4. Lessees
A Lessee may be an individual or legal entity from Moldova and other states, joint ventures and organizations, stateless individuals, international organizations.
The republic’s law shall determine the participation of individuals and legal entities from other states, as well as of stateless individuals, to lease of assets on the territory of the Republic of Moldova.

Article 5. Lease Sphere and Objects
Lease is allowed in all national economic branches.  Assets of all ownership types and forms may be leased.
The following can be leased: land and other natural resources, enterprises, organizations, units of enterprises and organizations, buildings, installations, premises, agricultural and other machinery, transportation means, inventory, instruments, other material goods.
Jointly agreed upon with the pledge creditor, the pledged object can also be an object of lease (pursuant to Law no. 229-XIV of December 16, 1998).
The law shall establish the types (groups) of enterprises and organizations, kinds of state assets that are not allowed for lease.

lease agreement
Article 6. Law on Lease
The lease and other legal ties related to it shall be regulated by this Law and other legislative acts.

Chapter II
Lease Agreement

Article 7. Lease Agreement Conclusion
The key document to regulate the relations between the Lessee and the Lessor shall be the lease agreement.  Such agreement shall be signed in writing for a specific period, not greater than 99 years (pursuant to Law no. 417-XIII of March 29, 1995).
The lease agreement shall be concluded based on direct negotiations or based on auction results, in the form agreed upon by parties, by stating the object and term of contract, the lease payment, observing the requirements of this law (pursuant to Law no. 237-XIV of December 23, 1998).

Article 7-1. Registration of Right of Lease
The right of lease to real estate for a period over 3 years shall be subject to mandatory registration in the real estate registry within 3 months as of concluding the lease agreement.  Failure to observe this deadline shall bring upon invalidity of agreement.
Upon Lessee's request, a right of lease for a period of less than 3 years can be also registered. 
Registration of right of lease shall be performed under Law on Real Estate Cadastre (pursuant to Law no. 237-XIV of December 23, 1998).

Article 8. Lease Agreement for Land and Other Natural Resources
The lease agreement for land and other natural resources upon parties consent may contain (pursuant to Law no. 237-XIV of December 23, 1998):

  • characteristics of the natural environment, land and other natural resources;
  • extent to which these are used;
  • technological requirements on their use;
  • land recultivation conditions;
  • compensation payments in case of excluding the land and other natural resources from the circuit;
  • protection conditions for adjacent natural resources;
  • industrial waste amount and depositing procedure;
  • maximum admissible standards on impacting the environment;
  • other conditions which do not contradict the law.

Article 9. Rent
The rent and its payment procedure shall be set by the owner and shall be stipulated in the lease agreement.  For state owned assets, the procedure for establishing the rent shall be set by Government (pursuant to Law no. 311-XIV of March 10, 1999).
The rent shall be established for all leased goods or separately for each leased object, in-kind, or in cash or both.
The rent size can be changed by the owner, while for state owned assets - by Government, in case the prices, tariffs, amortization (depreciation) payments or standards regulated by state are changed, as well as in other cases provided by law (pursuant to Law no. 311-XIV of March 10, 1999).
In addition to the rent, the Lessee shall pay all taxes provided by law, unless the law or agreement assigns such to the Lessor.
The Lessee shall have the right to request a rent reduction, if the assets state or use conditions, stipulated in the agreement, have essentially worsen due to circumstances not accountable to the Lessee.

Article 10. Conveyance of Assets to the Lessee
The Lessor shall be required to convey the Lessee the assets in a state conforming their designation, stipulated in the agreement.
The Lessor shall not be liable for any assets defects, stated in the agreement.
Where the Lessor does not pass in time the leased assets to the Lessee, the later shall have the right to request such assets from the Lessor as well as a compensation for damages caused by a delinquent execution of the agreement, or to cancel the agreement and request a compensation for damages caused by failure to execute the agreement, pursuant to the Civil Code.

Article 11. Sublease of Leased Assets
The Lessee shall have the right to sublease, fully or partially, the leased assets (except land and natural resources) upon Lessor’s consent, unless the law or agreement provide otherwise.  In this case the Lessee shall remain responsible under the agreement before the Lessor.

Article 12. Use of Leased Assets
The Lessee shall be required to maintain and use the leased assets according to their purpose and the agreement.
The Lessor shall be required to repair on his own account the leased assets, unless the law or agreement provide otherwise.
Where the Lessor fails to fulfil his/her obligations as to the repairs, the Lessee shall have the right to perform urgent repairs and request the Lessor to compensate the repair costs.

Article 13. Ownership of Leased Property and Its Growth
Lease shall not bring upon conveyance of ownership to that property.
The production obtained by using the leased assets and the revenues therefrom, as well as the assets acquired using such revenues shall belong to the Lessee, unless the agreement provides otherwise.
Upon agreement’s expiration or its cancellation, the buildings and installations which cannot be moved, built on the leased land by the Lessee upon Lessor’s consent, shall become the Lessor’s property, unless the contract provides otherwise.  In such case the Lessee shall have the right to request a compensation of their cost.
Upon agreement’s expiration or its cancellation, the buildings and installations which cannot be moved, built on the leased land by the Lessee without Lessor’s consent, shall become the Lessor’s property.  Where the later request the structures demolition, the Lessee shall be required to demolish these on his/her own account or compensate the Lessor all costs associated with demolition.
Where the leased assets are improved with Lessors permission, then the Lessee shall have the right to request, upon agreement expiration or cancellation, a compensation of all expenditures incurred for such purpose, unless the law or agreement provide otherwise.
The Lessee may take any improvements to the leased property done without Lessor’s permission, upon expiration or cancellation of agreement, provided that such improvements can be separated without causing any damage to the leased property or the Lessor does not agree to compensate the Lessee their cost.
Any improvements made without Lessor’s permission, which cannot be separated from the leased property without causing direct damage to it, shall pass free of charge under the Lessors’ ownership, upon expiration or cancellation of agreement.

Article 14. Redemption of Leased Property
The Lessee, upon Owner’s consent and of the person empowered by him, can redeem, pursuant to the law, fully or partially the leased assets.
The law provides for cases in which any redemption of the leased property is limited or forbidden.

Article 15. Independence of Lessee’s Economic Activity
The Lessee, pursuant to the agreement, shall conduct an independent economic activity and shall dispose of the obtained production and income.
Any interference of the Lessor in the use of leased assets, in the Lessee’s economic activity is not allowed.

Article 16. Changes to the Agreement.  Agreement Expiration and Succession of Right to It
The agreement can be amended upon consent of both Parties.
One Party can request an amendment to the agreement only in cases provided by law or by the agreement.
Where the economic agent - the Lessor reorganizes, or the owner of leased property changes, this shall not serve as basis to amend or cancel the agreement.
The agreement shall cease upon expiration of its period, upon liquidation of the economic agent, destruction of leased property, its deterioration or redemption by the owner.
Any premature cancellation of the agreement shall be done upon consent of both Parties.  The agreement can be cancelled upon request of one Party only based on a court decision in case the other Party violates the agreement (pursuant to Law no. 1322-XIII of September 25, 1997).
The agreement shall be cancelled also in case the land and other natural resources is expropriated for public and social needs.
Upon expiration of the agreement concluded with the Lessee, who is a citizen, the preferential right for signing a new agreement shall have the Lessor’s family members, who live or work together with him.
Where the Lessee (who is an individual) dies, the successor of his rights, pursuant to the agreement, shall be one of his/her family members who lived or worked with him, provided that such member wishes to be a Lessee.  The Lessor shall have no right reject the exercise of rights of the new successor, unless the lease agreement was determined by certain professional skills of the deceased Lessee.
In case of any dispute among the Lessee’s family members, right to have priority in concluding the agreement shall be decided in court, given the real possibilities of each member (work capacity, professional training and other skills).

Article 17. Premature Agreement Cancellation upon Lessor’s Request 
The Lessor can request a premature cancellation of the agreement, if the Lessee:
- fails to maintain and use the leased property in conformity with the contract or property’s designation;
- deliberately or carelessly worsens the state of leased property;
- fails to pay the rent for three months since the rent deadline, unless the agreement provides otherwise;
- fails to fulfil the contractual obligations with regard to fully restoring and repairing the leased property;
- subleases the leased property, received under the contract, without owner’s consent;
- uses irrationally the leased property or uses it by means which lead to deterioration of land and other natural resources;
- fails to undertake re-production actions of natural resources which have the ability to re-produce (restore - TN);
- has left unused the agricultural land for one year, and the non-agricultural land for two years;

Article 18. Premature Agreement Cancellation Upon Lessee’s Request
The Lessee can request a premature cancellation of the agreement, if:
- Lessor does not fulfil the contractual obligations with regard to fully restoring and repairing the leased property, technical-material supply, technical endowment of production and other actions alike;
- leased property, for reasons not accountable to the Lessee, are unusable;
- Lessor has not passed in time the property to the Lessee.
The Lessee can request the agreement cancellation in case he/she becomes physically disabled or is declared incapable, or if he/she serves a sentence for committing an infringement or any other punishment which does not allow for further execution of the agreement.  The preferential right, in the above mentioned cases, to conclude the agreement shall belong to one of the Lessee’s family members who has worked or lived together with him.

Article 19. Return of Property to the Lessor
After expiration of agreement, the Lessee shall be required to return the property to the Lessor in the state the Lessee has received it given the normal amortization, or in the state provided for in the agreement.
Where the Lessee worsens the leased property, he/she shall repair the damages caused to the Lessor, unless proves that such worsening happened not through his fault.  The persons (family members, sub-lessees, etc.) whom the Lessee allowed to use the leased property shall be deemed as guilty as the Lessee.
Where the leased property is deteriorated before expiration of the use period stated in the agreement, the Lessee shall compensate the Lessor the property’s residual value, unless the agreement provides otherwise.

Article 20. Lease of Enterprise Property
The enterprise property can be leased by one or more individuals and legal entities.
A lease company can be founded as a legal entity for purposes of leasing out enterprise property.  The procedure and conditions on foundation and operation of such lease company shall be established by Government.
For lease of enterprise property, the employees of such enterprise shall enjoy a pre-emptive right to conclude a lease agreement, other conditions being equal, irrespective of whether a lease company is or not founded.

Article 21. Lease Contracting
The lease contracting is a form of legal ties within an economic agent.  Such ties are based on a lease contracting agreement between the economic agent which leases out and the Lessees, presented by one or a few citizens which are employees or member of the economic agent in question.
The principles of lease contracting shall be set by Government.

Chapter III
Protection of Lessee's Property Rights,
Liability Under Lease Agreement, Disputes

Article 22. Protection of Lessee’s Right to the Leased Property
The Lessee’s right to the leased property shall be protected equally as the ownership right.
The Lessee can request for restitution of leased property from any illegal possession, request a liquidation of obstructions to its use, a repair of damages caused to the property by any person, including the Lessor.
No foreclosure shall be used for clearing the Lessor’s debts out of the leased property.
The property can be taken from the Lessee only by court decision (pursuant to Law no. 788-XIII of March 26, 1996).
Where the leased in land is expropriated for state or social needs, the new land user shall compensate the Lessee the caused damages.  The Lessee shall be distributed, upon request, another parcel of equal value, the existing lease agreement being amended by parties consent or ceased.

Article 23. Parties Liability for Failure to Fulfil or Improper Fulfillment of Contractual Obligations
For failure to fulfil or improper fulfillment of contractual obligations, including for agreement amendment or its unilateral cancellation, the culpable Party shall be liable under the agreement and law.
Article 24. Property Owner's Liability for State Authority’s Obligations

Where the state authority which leased out the property of a state enterprise or organization has insufficient funds, the owner of such property shall be liable before the Lessee for the state authority’s obligations.

Article 25. Disputes During Signing and Execution of Agreement, Its Amendment and Cessation
Any disputes arising during conclusion and execution of the agreement, its amendment and cessation shall be settled by the competent court (pursuant to Law no. 788-XIII of March 26, 1996).

President 
of the Republic of Moldova Mircea Snegur


DECISION
on Implementation of Law on Lease
The RM Parliament DECIDES:


1.The Law on Lease shall be effective as of its publication day.
2.The Government shall:
submit the Parliament, by February 20, 1992, proposals on types (groups) of enterprises and organization, types of state assets, which lease is not allowed, as well as of cases of restricting or forbidding the redemption of leased property;
by February 10, 1992 shall:
- establish the lease procedure, based on paragraph 2 of Article 4 of the Law on Lease;
- establish the procedure and conditions on foundation and operation of a lease company, as well as the principles on managing a lease contracting;
• by March 1, 1992: 
- submit to the Parliament proposals on conforming the legislative acts with the passed Law;
- bring its decisions and other normative acts in conformity with the above mentioned Law.
3.The Law on Lease shall not apply to rent of dwellings.

Chairman of 
RM Parliament Alexandru Mosanu

Chisinau
January 14, 1992
no. 862-XII



Chisinau, March 29, 1995


LAW
On amending the Law on Lease

The Parliament adopts this Law.

Art. I. – Law no. 861-XII as of January 14 1992 on Lease (Monitor of the Parliament of the Republic of Moldova, 1992, no.4, Art. 12) shall be amended as follows:

1. Last phrase of Art. 7, paragraph 1 shall be excluded.
2. In Art. 9:
paragraph 1 shall have the following wording:
“Lease and payment procedure shall be established by the owner and fixed into the lease contract.”;
paragraph 3 shall have the following wording:
“Amount of rent can be modified by the owner in case of change in prices, tariffs, payments or amortization norms regulated by the state, and in other cases provided by the legislation. “

Art. II – This Law shall be enacted as of the publication date. 



This Memorandum contains ARTICLE 19’s analysis of the Draft Law on Freedom of Expression of Republic of Moldova (“Draft Law”);1 that was submitted by the Moldovan Government to the Parliament 

This Memorandum analyses the Draft Law from the viewpoint of its compatibility with relevant international human rights standards. The Memorandum also examines the Draft Law in the light of international best practices in regard to freedom of expression laws. The Constitution of Moldova recognises the binding character of international human rights law and proclaims its supremacy over domestic law in Article 4. Therefore the Moldovan authorities are obliged to comply with the provisions of the International Covenant on Civil and Political Rights2 (“ICCPR”) and the European Convention on Human Rights3 (“European Convention”), against which the Draft Law is analysed.

ARTICLE 19 is an international, non-governmental human rights organisation which works with partner organisations around the world to protect and promote the right to freedom of expression. It has previously provided legal analyses in the area of media law to government and civil society organisations in over 30 countries.4 Regarding Moldova, ARTICLE 19 has analysed a number of the freedom of expression and freedom of information-related laws and

Draft Laws, including the 1999 and 2000 versions of the Draft Law on freedom of information, the 2003 version of Draft Law on freedom of press, the 2006 version of the Draft Law to promote participation and transparency in the decision making of public authorities, the audiovisual code, the 2008 version of draft state secrets law. ARTICLE 19 has also analysed the defamation provisions in the legislation of Moldova in its 2006 Memorandum concerning the amendments to decriminalise defamation and the 2008 Comment on the Moldovan President’s proposal on moral damages for defamation.5

The proposed Draft Law is praised for aiming at elaboration of the content of the right to freedom of expression as guaranteed by the Constitution and incorporation in national legislation of general international principles of freedom of expression. Although Moldova abolished criminal defamation in 2004, the domestic law and practice in the area of freedom of expression remain problematic.6 The introduction of the present Draft Law would therefore represent a significant step forward in the realisation of the right to freedom of expression in Moldova.

At the same time, ARTICLE 19 has serious concerns about the vagueness of some provisions of the Draft Law as international freedom of expression standards are not always correctly reflected in the legal principles of the Draft Law. In particular, the Draft Law fails to ensure that all restrictions on the right to freedom of expression fulfil the necessity requirement of the three-part test and that confiscation of the circulation or liquidation of media outlets are allowed only as a last resort in response to extremely serious violations of the law. The regulation of protection of confidential sources is not in full compliance with Council of Europe Recommendation R (2000)7. The defence of ‘reasonable publication’ cannot be invoked by all citizens. The regime of measures for ensuring legal action is confusing, and the proposed measures can be widely used. Finally, it allows interested persons to sue for defamation of deceased persons.

Section II of the Memorandum summarises the general international principles on freedom of expression and defamation that the analysis draws on, focusing on the jurisprudence of the European Court of Human Rights. The analysis additionally refers to several documents developed by ARTICLE 19 and endorsed by international bodies and other stakeholders. In particular, we refer to Defining Defamation: Principles on Freedom of Expression and Protection of Reputations (“Defining Defamation”)7 as an authoritative standard-setting document, drawing on comparative constitutional and international law jurisprudence. It contains principles which have attained significant international endorsement, including that of the three official mandates on freedom of expression, the UN Special Rapporteur on Freedom of Opinion and Expression, the OSCE Representative on Freedom of the Media and the OAS Special Rapporteur on Freedom of Expression.8 In addition, ARTICLE 19 also relies on The Camden Principles on Freedom of Expression and Equality (the “Camden Principles”), a progressive interpretation of international law and standards concerning the balance between the rights to freedom of expression and equality prepared by ARTICLE 19 in consultation with high-level inter-governmental officials, civil society representatives and academic experts.9


Next PostNewer Posts Previous PostOlder Posts Home