Category Archives: democracy

Deconstructing Vlad Plahotniuc’s article in the Wall Street Journal

An article published in the WSJ opinion section on 27 December, 2017, signed by the head of Moldova’s ruling Democratic Party Vlad Plahotniuc proclaimed that Moldova needs the West’s help against an aggressive Russia, but a closer scrutiny of Plahotniuc’s record reveals that his anti-Russian rhetoric is nothing more than a political strategy aimed at gaining domestic legitimacy and foreign support for his increasingly anti-democratic regime. This becomes all the more clear once we put Mr. P’s WSJ statements into actual context.

Mr. P: “Moldova is dependent on Russian energy. We are seeking to diversify and hope to integrate with the European gas and electricity markets via Romania by end of next year.”

–    On 1 April 2017, following an internationally monitored procurement procedure,  Moldova’s state owned Energocom (controlled by Plahotniuc’s government) signed a one-year contract to import electricity from Ukraine. Two months later, Moldovan side (read Plahotniuc)surprised its western partners by deciding to modify the contract in favor of the Russian state owned power plant in the separatist region of Transnistria, which fails to pay for the Russian gas it uses to produce the electricity it sells to Moldova, having accrued an over 6 billion USD debt, officially accumulating on the books of the Moldovan state owned gas company. Thus, Plahotniuc is increasing Moldova’s strategic dependence on Russia, instead of reducing it by acquiring electricity from Ukraine.

–       Moreover, after the Annexation of Crimea and during the War in Donbas, in November 2014 then Deputy Prime Minister, Minister of Economy Andrian Candu, now Parliament Speaker and Plahotniuc’s closest protégé was eager to offer Russian investors concessions or have them privatize strategic Moldovan infrastructure assets such as the energy grid, national railway, state  telecom company, which only proves that, when it comes to making money, the Democratic Party and Plahotniuc totally disregard the Russian threat to Moldova and the region.                      

Mr. P: “Between 2011 and 2014, Russian-backed interest groups manipulated Moldova’s banking system to launder more than $20 billion.”

–          Plahotniuc has held enormous sway over the Moldovan justice system and banking sector. During that timeframe, he controlled a large stake in one of the banks involved in money laundering. He also controlled the prosecutor general. Needless to say, such a large scale laundering operation would not have been possible without his blessing. Similarly, Plahotniuc fails to mention the billion dollars stolen from Moldovan banks under his watch and the failure to prosecute the main fraudster – Ilan Shor, as identified in an independent Western financial forensic investigation.

–          Moreover, it was none other than the current Justice Minister Alexandru Tanase who back in 2010, as a legislator, promoted the amendment that created the necessary conditions for the $20 billion Laundromat by eliminating the 3% state tax in cases of property disputes, replacing it with a ceiling of about 1500 EUR for physical  persons and 3000 EUR for legal persons. Without this crucial amendment, the launderings of $20 billion would have cost 0.6 billion, making it a much less attractive undertaking, even without adding all the presumed bribes offered to the judges and other accomplices in this vast criminal enterprise.       

Mr. P: “Given that a significant percentage of Moldova’s population is exposed to Russian-controlled media, propaganda and the anxiety it stirs are among the biggest threats we face.”

–          Plahotniuc owns the rebroadcasting rights to the first Russian federal TV channel – Perviy Kanal – the most influential Kremlin propaganda tool. Moldova’s Broadcasting Regulator controlled by Plahotniuc offered an associate of pro-Russian president Igor Dodon a license to rebroadcast the second Russian federal channel – the nefarious NTV. For a decade now, Plahotniuc has been making a fortune off Russian TV propaganda in Moldova.

Mr. P: “We need the West to invest in an independent media market.”

–        Plahotniuc’s political and administrative machine has been harassing and obstructing independent media, including those funded by Western donors. The six months delay in issuing TV8 a license is a case in point. It is largely because of Plahotniuc’s actions that Moldova dropped four positions in the Reporters without Borders 2017 Press Freedom Index.        

Mr. P: “Unfortunately, powerful political forces, including our pro-Russia president, Igor Dodon, are sympathetic to Moscow’s narrative.”

–        Plahotniuc’s media empire played a major role in the election of pro-Russian president Igor Dodon. Dodon’s fellow Socialists, in turn, offered Plahotniuc a life vest by supporting the highly controversial introduction of the mixed electoral system that gives Plahotniuc a chance to hold onto power after the next election, as his party risked not passing the 6% threshold under the previous proportional party list system.  

Mr. P: “Moldova is a proud multiethnic state, devoted to reform and democracy.”

–         In the last two years, Moldova has been suffering from clear democratic backsliding, as reflected in the worsening of the country’s Freedom House Democracy Score. Similarly, Moldova has fallen in the Economist Intelligence Unit’s Democracy Index. Democratic Party’s ongoing attack on local public administration and intimation on mayors, aimed at forcing them to join the ruling party is particularly damaging to local democracy. After orchestrating a hostile takeover against the democratically elected Chisinau municipal administration, now the second largest city Balti is undergoing a similar scenario.  

 

Shevcuk_Tank

Former Transnistrian Separatist Leader Finds Refuge in Moldova Thanks to Plahotniuc.

 

 

 

 

 

           

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Moldovan Politics 2017: The Good, the Bad and the Ugly

Moldova has witnessed clear signs of democratic backsliding in 2017 on the backdrop of some consumptions based economic growth – the government calls it stability, while the opposition views it as stagnation at best. Window-dressing reforms and paying lip service to international and domestic commitments is the hallmark of 2017. Next year’s legislative elections can be a turning point in terms of how the country has been governed since independence. Sadly, Moldovan voters have had high hopes before, only to find their trust betrayed yet again by the political class. Many disillusioned voters see real change as almost too good to ever materialize. This makes apathy all too common, which only works in favor of the ruling elite content with obfuscating popular scrutiny and relishing in impunity.  This somber reality of the past year took Moldova back at least a decade in terms of media freedom, rule of law and political pluralism. If this trend continues Moldova will soon become more like Belarus and Azerbaijan and less like the European Union many so aspire to.

The Ugly

The year 2017 proved to be a time of Vlad Plahotniuc’s power consolidation, as predicted in an article from last January. The leader of the Democratic Party which only gained 15.8% in the 2014 parliamentary elections, resulting in 19 seats in Parliament, managed to turn 17 of 21 Communist legislators and 18 and 23 Liberal Democratic Members of Parliament to his side, in effect pulling off a hostile takeover of two competing legislative factions. Plahotniuc now fully controls the government thanks to his comfortable majority in Parliament, despite being the most reviled politician in the country, no matter the resources he pours into whitewashing his image. Despite controlling about 75% of the media market, employing dozens of political and PR consultants, including world-class lobbyists, a recent national poll showed Plahotniuc to be the most corrupt politician in Moldova by far. In a country with robust democratic traditions, compared to the rest of the post-soviet space, Plahotniuc’s utter lack of legitimacy makes him vulnerable. That is why, knowing that his party stood no chance in the next election, Plahotniuc did what any authoritarian leader does, he radically changed the rules by introducing a mixed electoral system to benefit his party and his bedfellow, former Socialist leader Igor Dodon, who became president with Plahotniuc’s help in December 2016.

The Bad

For President Dodon, the year 2017 was a year of lost opportunities, unforced errors and perplexing submissiveness to Plahotniuc.  Having run on a strongly pro-Russian platform, Dodon spent much of his 2017 in Russia, having met President Putin six times. Yet, Dodon failed to visit either Romania or Ukraine.  Even so, Dodon’s frequent visits to Russia did not translate into better political or economic relations with Moscow. On the eve of his sixth meeting with Putin at the informal CIS summit, Dodon lamented that not everyone in Russia is in awe of the Socialists’ powerful grip over the entire left-wing electorate. Dodon went so far as to accuse Russian intelligence of plotting against him and his joint efforts with Russian leadership to improve relations between the two countries (sic!). In the same interview to Kommersant, Dodon appeared to regret the fact that Russian prosecutors issued an international arrest warrant for Vlad Plahotniuc (on charges of attempted murder and criminal conspiracy;  Interpol rejected the warrant as politically motivated)  because, according to Dodon, this only boosted Plahotniuc’s standing with his western benefactors and it does not play well politically for Dodon and his fellow Socialists. Reality is hard to discern in the smoke and mirrors of Moldovan politics, but Dodon may actually be accurate in his allusion about Moscow hedging its bets. The part that Dodon may not feel comfortable admitting is that the Kremlin is not betting on just one horse in Moldova. Plahotniuc may, in fact, be the Kremlin’s second option and a coalition between Plahotniuc and Dodon may be exactly what Russia is after. Just remember 2010, when then head of the Russian president’s administration Sergey Naryshkin famously acted as a negotiator between the Communists and the Democratic Party.

If a future PD-PSRM coalition is indeed on the cards than it is no longer so astonishing that Dodon has refused to capitalize on Plahotniuc’s legal troubles in Russia or in Romania where he is being investigated for organized crime and money laundering. Moreover, this also explains Dodon’s uncanny response to his shameful temporary suspension from office by Plahontiuc. All this vindicates the political cartel narrative between PD and PSRM, the natural conclusion of which is a Russia backed governing coalition. A grand PD-PSRM coalition is already being accredited as the most likely post electoral scenario by leading pro-Plahotniuc pundits. Meanwhile, the mutual public demonization between Igor Dodon and Vlad Plahotniuc continues unabated – a political theater aimed at gullible domestic and foreign audiences alike.

The Good

In order to mitigate their relative weakness and fractionalization, the centre-right opposition parties announced plans for consolidation. On November 20, Maia Sandu and Andrei Nastase on behalf of Action and Solidarity Party and Dignity and Truth Platform Party respectively announced a would be electoral bloc of center-right pro-EU and anti-oligarchic political forces. The bloc will also encompass prominent civil society activists and leaders from various professional fields. In response, on December 14, a group of 77 personalities, including members of Moldova’s first Parliament and signatories of the declarations of independence launched the Civic European Movement with the goal of galvanizing support for the newly announced electoral bloc. The ruling party gave a response of its own by spearheading an effort to launch a new spoiler party – Party for Animal Rights (Partidul Politic pentru Drepturile Animalelor, PPDA) – with the same acronym as the Dignity and Truth Platform Party (PPDA), aiming to steal votes from the opposition by confusing and misleading the voters. This is yet another example of anti-democratic behavior, adding to the long list of political intimidation tactics employed by the Democratic Party against its real competition. In this context, it should come as no surprise that Action and Solidarity Party and its partners reject even the thought of a post-electoral coalition with the Plahotniuc controlled Democratic Party, not to mention Dodon’s Party of Socialists. Thus, the center-right parties are doomed to cooperate in order to increase their electoral standing. According to Sun Tzu, having no alternative is the best commitment device there is. Though, it is certainly not a substitute for an electoral campaign strategy.  Will the genuinely pro-reform and integrity driven political figures be successful? Only 2018 will tell…