In response to ongoing concerns about transparency and oversight in this arena, the bill expands the investigative powers of the Party Financing Supervision Committee (ERJK).

The bill, if it entered into law, would introduce new provisions which establish authorization norms, enabling the ERJK to require political parties, electoral alliances, non-affiliated individuals who have run on party or alliance lists, as well as independent candidates, affiliated organizations including NGOs, and third parties, to submit documents, information, and explanations.

Beyond investigative powers, the bill also seeks to enhance financial accountability. It clarifies the definition of donations and the list of prohibited donations, as well as changing the consequences of accepting a prohibited donation.

Under the amendment, a deadline of 30 days from the receipt of a donation will be established, within which time the recipient must return any donation to the donor if that donation infringes the rules.

If the deadline passes, the prohibited donation must be transferred to state coffers.

To further close loopholes in party financing, the bill broadens the definition of an affiliated organization so that being considered affiliated will no longer depend solely on whether the party is the founder or member of a foundation or non-profit organization.

The ERJK is currently weighing up whether a Postimees program podcast hosted by Isamaa chair Urmas Reinsalu constitutes a prohibited donation. LINK

While separate from the bill itself, the case underscores the ongoing scrutiny of political financing practices.

Additionally, the bill clarifies the reporting obligations of political parties and stipulates that parties must henceforth disclose expenses related to research and data collection as part of their political expenses.

Another significant change concerns financial borrowing rules imposed on political parties.

The bill removes the upper limit on the amount of obligations arising from loan agreements for parties, currently set at 25 percent of the sum allocated to parties from the state budget.

Riigikogu Constitutional Committee Chair Hendrik Johannes Terras (Eesti 200) said the bill addresses several legal and organizational obstacles which have emerged during ERJK operations, such as the committee's limited powers in gathering information and responding to the making and receiving of prohibited donations.

Terras said: "During the further proceedings, we will also review broader issues not currently covered in the bill," adding that the necessary changes for the effective work of the supervisory committee are intended to be implemented well before the next Riigikogu elections, in 2027.

At the Riigikogu committee meeting, the planned changes in the bill were introduced by Minister of Justice and Digital Affairs Liisa Pakosta (Eesti 200) together with the head of the public law department at the Ministry of Justice and Digital Affairs, Illimar Pärnamägi, as well as advisor Mariko Jõeorg-Jurtšenko.

The constitutional committee opted to propose to the Riigikogu's board that the bill amending the Political Parties Act and the Credit Institutions Act be included in the agenda of a Riigikogu plenary session scheduled for March 18, and that the first reading of the bill be concluded.

Bills require three readings before entering into law, and a majority vote in each case. Substantive amendments may be put forward between first and second readings, while only cosmetic amendments can be made between second and third readings.

--

Follow ERR News on Facebook and Twitter and never miss an update!