Riinvest Institute 2014

34 Ibid.
35 Audit&Conto 2011, “Financial Statements and Auditor’s 
Report for 2009 and 2010”
36 Ibid.
37 Ibid.
38 KDI 2013, “Untangling Political Financing”
39 Ibid.
regards to income. For instance, the income sources of 
PDK and the Democratic League of Kosovo (LDK) de-
clared in their annual report did not match the income 
declared in the report of 2009 local elections. Major 
discrepancies were also found between the expenses 
shown in the annual financial reports of PDK, LDK, 
the New Kosovo Alliance (AKR), and AAK and those 
reported on the electoral financial reports.
40
AAK, for 
instance, went too far by not including any electoral 
expenses in its annual financial report, even though, 
based on the electoral financial report, their expenses 
amounted to €154,874.
41
Finally, in order to prevent the fraudulent practices, 
the law specifies that all donations to political parties 
should go via bank accounts of beneficiary political 
parties.
42
Despite this law obligation, most of their fi-
nancial transactions were made in cash.
43
A major cause of the above-mentioned law-violating ac-
tivities is related with the absence of rigorous penalties. 
Although many irregularities and violations were found 
in the audit reports, the total amount of fines issued 
to political parties was only €2700.
44
In addition, the 
same source stated that CEC has not issued any fine 
at all for those political parties who have not respected 
financial accounting standards.
40 GLPS 2013, “Financing of Political Parties in Kosovo”
41 Ibid.
42 Law No. 04/L-058 On Amending and Supplementing the Law 
on Financing Political Parties, Article 5.3
43 KDI 2013, “Untangling Political Financing”
44 Ibid.

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18
n
Public goods and services are delivered by con-
tracting private companies in a competitive process 
which ensures utility maximization for the taxpayer. 
As such, not having an efficient and just procurement 
system not only risks receiving suboptimal quality 
public goods, but also distorting the market. There-
fore, public procurement is the one area of gover-
nance where it is crucially important to have transpar-
ency as it is relevant for all public institutions, makes 
up the bulk of public spending, and has implications 
for the functioning of the market. 
According to the Public Procurement Regulatory 
Commission (PPRC) the yearly value of public con-
tracts in Kosovo fluctuates around €800 million
45
. 
Almost all contracts are awarded using the Lowest 
Price Criterion and only a small portion using the 
Most Economically Advantageous Tender (MEAT). 
The losses incurred in paperwork, bureaucracy, and 
the inefficiency associated with these two, are huge. 
Lack of e-procurement is one of the major threats 
to transparency in the procurement of public funds. 
Currently the Public Procurement Regulatory Com-
mission makes public in its website almost all public 
contracts; however, the process up to the point of 
contracting is not easily followed by all interesting