transparency Archives

Report: Montenegro Ruling Coalition Hired Offshore Company for Election

Posted on May 27, 2021January 26, 2023 by Ivana Jeremic

The head of the prominent Montenegrin watchdog MANS, Vanja Calovic Markovic, on Wednesday alleged that most political parties concealed part of their election funding sources and the actual costs of their campaigns for last year’s parliamentary elections.

At the promotion of MANS’ parliamentary election report, Calovic Markovic also said one of the parties in the now ruling For the Future of Montenegro coalition used an offshore company to make camaign videos.

“They hired an offshore company, Limanaki Studios LTD, from Cyprus, to produce videos. That company has not submitted financial reports since its establishment, and its owners are hidden,” Calovic Markovic said, not naming the actual party.

“The contract specifies the given company to do advertising videos for 50,000 euros, without the number of commercials or the deadline by when it must be completed, only the payment deadline,” she added.

In parliamentary elections held on August 30 last year, three opposition blocs won a slender majority of 41 of the 81 seats in parliament, ousting the long-ruling Democratic Party of Socialists, DPS.

New Prime Minister Zdravko Krivokaic led the largest bloc in the now ruling majority, the pro-Serbian For the Future of Montenegro, with the Democratic Front, DF, as its strongest member.

DF officials and the Prime Minister have not commented on the MANS report.

Calovic Markovic said that all the competing electoral lists spent a total of about 245,000 euros on advertising on social networks, almost ten times more than in the 2016 parliamentary elections.

“The administrators on social networks that financed the advertising of certain political structures were exclusively from Serbia,” Calovic Markovic noted.

In December 2020, in its report on the election, the OSCE/ODIHR mission said that Montenegro had not managed to ensure transparency, accountability and integrity of campaign finances, despite changes to electoral laws.

“There is general public mistrust in the campaign finance regulatory system, as currently implemented, and despite some improvements, the legal framework does not establish effective safeguards against corruption or circumvention of campaign finance rules,” the report said.

In its 2020 progress report on the country, the European Commission warned that the electoral legal framework remained largely unchanged since the parliamentary elections in 2016.

“While it provides basic regulations for the conduct of democratic elections, gaps and ambiguities allow for circumvention, particularly in campaign finance,” it observed.

Suspicions about secret camaign funds grew in January 2019, when a video clip from 2016 surfaced in which Dusko Knezevic, chairman of the Montenegro-based Atlas Group, appears to hand the then-mayor of Podgorica, Slavoljub Stijepovic, an envelope containing what Knezevic later said was $200,000 to fund election campaigns.

Knezevic, now believed to be in London, told the media he had been giving the DPS, led by President Milo Djukanovic, such sums for about 25 years, during which time the DPS had never been out of power.

In February 2019, the DPS was fined 20,000 euros and ordered to pay 47,500 euros to the state budget, while in February this year the Higher Court in Podgorica suspended criminal proceedings on Stijepovic.

Facebook Reveals Cost of Albanian Parties’ and Candidates’ Election Ads

Posted on April 15, 2021January 26, 2023 by Ivana Jeremic

Facebook has for the first time published a report on what Albanian parties have spent on online advertising on the social media giant during the current parliamentary election campaign.

According to the report, the biggest parties predictably spent more money in sponsored posts for political content than the others.

The biggest advertiser was the ruling Socialist Party, which so far posted 394 ads costing 21,907 US dollars, followed by the main opposition centre-right Democratic Party, which spent 11,536 dollars on 81 ads.

According to BIRN’s calculations, 123,152 dollars was spent on political and social advertising by the parties in all. However, its data show that only 113,252 dollars were actually spent by parties, candidates or sites that distribute political ads. The rest of the ads were from the media and from companies that have been wrongly categorized by Facebook’s algorithm.

Gent Progni a web developer, told BIRN that the total amount spent by each party on FB seems quite low for a target audience of two million people, but the figures change if every candidate or other Facebook page campaigning for a political party is counted.

“The amounts are small for an audience of two million Albanians, looked at from the official websites of the parties. But if you see each candidate in particular, or sites that have just opened and are campaigning for parties, we have a completely different reflection of the amount, which increases several times,” he told BIRN.

According to BIRN, many newly opened Facebook pages are spreading political advertising but their expenses, which are high, are not connected always to parties or political candidates.

Facebook asked Albania to be transparent with political advertising in March during the election campaign by including “paid for by…” in sponsored posts.

Political expert Afrim Krasniqi, head of the Albanian Institute of Political Studies, a think tank based in Tirana, told BIRN that this is the first time an Albanian election campaign is being held more virtually than physically.

“This is why parties and candidates are using social media as the cheapest and fastest source of communication,” he told BIRN.

He added that Albania lacks a strong regulatory legal basis or control mechanism concerning the finances of election campaigns or party propaganda on social media.

A law, “On Political Parties”, only obliges parties to be transparent about their financial resources, while the Central Election Commission is responsible for monitoring and auditing the finances of political parties.

Brussels Greenlights Contentious Media Sale in Central Europe

Posted on October 7, 2020January 26, 2023 by Ivana Jeremic

The European Commission on Wednesday approved the sale of Central European Media Enterprises, CME, to the PPF Group conglomerate, whose owner, the Czech Republic’s richest businessman, Peter Kellner, has been accused of acting as a proxy for China.

The CME, majority owned by AT&T, operates 30 television channels in five Central and East European markets.

Civil society groups earlier warned that the sale could boost China’s influence on the TV sector in Central and Eastern European countries where both groups are present. Concerns have also been raised over potential market concentration.

The EU executive body dismissed these objections, however. “Based on its market investigation, the Commission found that the transaction, as notified, would not impact the companies’ position in these markets,” a statement on its website said.

“PPF and CME are both active in the acquisition of sports broadcasting rights in Czechia and Slovakia and in the sale of advertising space in Czechia,” the statement added. “In parallel, the two companies are active at different levels of the TV value chain,” it continued.

“CME is mainly active as a wholesale supplier of TV channels in a number of Member States, while PPF offers retail audio-visual and telecommunications services in Bulgaria, Czechia and Slovakia,” it asserted.

These elements pose no real risk to fair competition, the Commission went on, as “the companies generally do not compete for the acquisition of the same sports rights and the transaction would only lead to a limited increase in PPF’s existing share of the market.

“Similarly, PPF’s activities represent a negligible share and would not add significantly to CME’s position in the market for the sale of advertising space in Czechia.”

The sale will give Kellner’s group control over leading private television stations now owned by CME in Bulgaria, Romania, Slovenia and Slovakia. CME’s main channel in Slovakia, Markiza TV, is widely considered a rare independent television station in the country.

PPF has already interests in the audiovisual and telecommunications sectors in some of these countries.

The deal was signed in October last year. A PPF representative said on Wednesday that the group expected the purchase to be finalised on October 13.

Last February, US Republican Senator Marco Rubio, a known China hawk, urged the US authorities to launch “a full review of the national security implications” of the sale.

Rubio insisted that the deal would advance “the Chinese Communist Party’s political interference” in the countries where CME operates.

If the sale to PPF went ahead, Rubio observed, Kellner’s group would control of channels with a massive audience of 97 million people only in Romania and Bulgaria, where CME owns rating market leaders Pro TV and b1.

China in July announced retaliatory sanctions on Rubio, fellow Republican Senator Ted Cruz and other US officials for their harsh criticism of its policies.

Kellner has often been accused of serving China’s interests in Czechia, where his PPF group has its base. These services are said to include whitewashing Beijing’s record through a paid propaganda campaign in the Czech media.

North Macedonia: Facebook Pages Target Users with ‘Identical Content’

Posted on June 25, 2020January 26, 2023 by BIRD

The Atlantic Council’s Digital Forensic Research Lab, DFRLab, which works to counter disinformation online, says its researchers have found dozens of Facebook pages linked to at least 10 Macedonian news outlets, demonstrating “several characteristics pointing to coordinated activity, including the near simultaneous publication of identical content”.

While some of these Facebook “assets” acknowledged their connection to the outlets whose content they were amplifying, others had no known connection.

“The assets also demonstrated signs of inauthenticity, as they were created as various interest pages, but ultimately promoted content from news sites to which they disclosed no connection,” DFRLab said.

It added this was clearly an efficient strategy, as the pages in every network had more followers than the official Facebook pages of the promoted media outlets.

A total of four separate networks or subsets of coordinated Facebook assets were amplifying content published by some of these websites: Republika Online, Kurir, Denesen, News24, Puls 24, Galama Club, among others.

Only one of these is a tabloid. The others publish mostly political content: one of the outlets is openly pro-opposition. The others offer more balanced reporting on internal affairs.

DFRLab research found coordination within networks of pages, but not across the four networks. There was also no sign that North Macedonian media outlets themselves managed the inauthentic networks.

The Facebook pages were created between 2009 and 2018 and were mostly managed from North Macedonia. Some were managed from the US.

According to DFRLab’s research, some of the Facebook pages seemed connected to Adinamic Media, which publishes news sites supporting the main opposition VMRO-DPMNE party.

This media company is believed to have links with the Hungarian pro-government public TV network, Magyar Televizio, MTV.

Researchers said the presence and success of these networks had added to the political polarization in North Macedonia ahead of early parliamentary elections due this year.

“The use of an inauthentic network on social media may enable political forces to mislead people and spread manipulated content to garner voter support, raising a concern on the integrity of the electoral process in the country,” DFRLab said.

VMRO-DPMNE, Putin and right-Wingers

Different pages amplified the same content at the same time from the same media outlets. Red boxes highlight posts from official Facebook pages of Vistina and Republika showing simultaneous posting by official and amplifier pages. Photo: Courtesy of DFRLab

According to the research, the first network consisted of seven Facebook pages that were amplifying articles published by Republika Online, Kurir, Denesen and Vistina.

Vistina is a tabloid and doesn’t cover political topics. The remaining three mainly report on political issues and feature pro-VMRO-DPMNE views. All are owned by the same media holding, Adinamic Media, which is connected to Hungary’s MTV, the report said.

According to the Organized Crime and Corruption Reporting Project (OCCRP), a former senior executive at MTV, Agnes Adamik, established Adinamic Media in 2017. The company then purchased a majority of shares in three media companies in the country, mostly supporting VMRO-DPMNE.

According to some experts, these acquisitions helped Hungary’s Prime Minister, Viktor Orban, expand his and his country’s influence in the Balkans. They also supported his then ally in Macedonia, Nikola Gruevski, who obtained asylum in Hungary after fleeing a prison sentence in his home country in 2018.

The Facebook pages in this network posted almost identical articles and at the same frequency. The total number of followers of the seven pages was more than 690,000, while the official Facebook pages had less than 300,000 followers.

“This may indicate that since these outlets had not been successful in growing audiences for their official Facebook pages, they decided to create coordinated networks to amplify their content,” the researchers say.

The second network comprised 17 Facebook pages publishing content from three news outlets: Markukle, News24 and Signal. These also report political issues, but their content is not openly anti-government.

Some publish supportive articles on Russian President Vladimir Putin, portraying him as an influential leader who upholds traditional values and helps friends in need. News24 sometimes amplified Russia Today and Sputnik videos.

As for the third network of pages, the DFRLab researchers found that the “amplifier pages … may be connected to Filip Petrovski, a right-wing presidential candidate in the 2019 North Macedonia presidential elections and a former member of VMRO-DPMNE party”.

Petrovski opposed the country’s change of name to North Macedonia and has called for the cancellation of the related Prespa agreement with Greece, signed in 2018. Petrovski also posts News24 articles on his own Facebook account.

Two pages in this network had names related to Petrovski, and their “about” sections contained details from his biography and political views.

The fourth network of Facebook assets amplified content published by two outlets, Net Medical Diet, which reports on health, and Galama. According to the research, the eight amplifier pages were managed from North Macedonia and from the US.

DFRLab also found five Facebook pages amplifying content from outlets owned by EM media, in which Adinamic Media has a majority of shares.

“Although the DFRLab was not able to identify coordination between them, there is a likelihood that EM Media was using these assets for content promotion,” the report said.

Greek Govt Support for Media Comes at Expense of Transparency

Posted on April 14, 2020January 26, 2023 by BIRD

A decision by Greek Prime Minister Kuriakos Mitsotakis’ secretary-general to commit 11 million euros from the national budget to an urgent publicity campaign that will run until the end of May to promote measures to contain the spread of COVID-19 has raised alarm among opposition MPs.

Urgent legislation was already introduced on March 11, obliging TV and radio stations to regularly broadcast short public health messages for free.

Another piece of legislation on March 30 suspended payments for six television companies of the annual fees they pay for nationwide licences to broadcast.

As each of them was due to pay 3.5 million euros in 2020, this year’s loss of income would be up to 21 million euros. The content of the legislation is vague and it remains unclear if, when and how the suspended fees will be paid in the future.

The decisions have raised criticism among opposition MPs that the government is using the COVID-19 measures to improve its relations with the media without transparency.

More concerns were raised when the contract to implement the 11-million-euro publicity campaign was directly awarded to a private company with a three per cent commission on the total amount, which amounts to 330,000 euros. The criteria for how media outlets will be chosen to carry the publicity material and what amounts of money will be distributed to the chosen media outlets have also not been made public.

On top of this, the implementation of the programme by a private company removes the responsibility to upload information on the allocation of funds to the public transparency registry, which would have been necessary if the government had decided to implement the programme without an intermediary.

“There are a number of pertinent questions around this campaign that the government will have to answer,” veteran MP Sofia Sakorafa from the Mera 25 party told BIRN.

“Why is this campaign necessary if media are already obliged to broadcast free messages and they are reporting on COVID-19 from early morning till late at night anyway? How was the implementing partner chosen, using which criteria and out of what other companies? Since we are talking about public funds, which state or independent authority will examine which allocations [are made] and under what criteria they happened? Is there going to be transparency so we all learn which media were funded and with how much?”

An urgent meeting of the Greek parliament’s Transparency Committee discussed the issues on April 10. Answering questions regarding the direct award to a private company as well as the suspension of TV licence payments, government spokesperson Stelios Petsas responded that “if we held a tender we would need at least six months” before starting the campaign, which would be completely inefficient.

Greek Parliament building in Syntagma square and the empty streets of the capital city of Athens, Greece, 2020. Photo: EPA-EFE/ANDREAS TSAKNARIDIS

He also insisted that in the end, the amounts given to media companies under the programme will be made public and that TV licenses fees would be paid in full.

But Syriza MP Nikos Voutsis, who was president of the Greek parliament from Oct 2015 to July 2019, told BIRN that the answers were less than satisfying.

“Due to past experience we know the government can bring in an urgent amendment anytime and exempt TV channels from paying these obligations. The future will prove what the intentions of the government are on this issue. Until then, this suspension is a small first gift,” Voutsis said.

But the lack of scrutiny over the 11-million-euro campaign is an even bigger problem, he argued.

“The big issue is that they are evading the obligation to publish the information on the transparency registry. The spokesperson has not taken any step back, it’s not a practical issue but a political choice, since the previous government had put in place a transparent process to distribute ten million euros of support funding to the press,” he said.

“We believe this is a process that should only take place with bipartisan cooperation and consensus based on the existing media registry [of outlets that can receive state funding],” he added.

The Greek press’s circulation has collapsed since COVID-19 lockdown measures were introduced. To contain the downward trend, owners and employees’ associations asked for newspapers to be circulated through supermarket chains – a move to which the government agreed at the end of March.

Illustration. Photo: EPA-EFE/ORESTIS PANAGIOTOU

The association of regional newspapers has asked that 30 per cent of the 11-million-euro package is committed to the regional press. It also claimed that urgent advertising bought by regional municipalities around the country “is not following any of the criteria envisaged by the law”.

According to the law, public funding should follow certain criteria based on circulation and readership as well as the income of each media outlet being funded, in order to protect pluralism and objectivity and avoid influence.

Meanwhile, according to experts, TV viewing ratings have increased by 25 per cent since the lockdown, and bymore than 60 per cent among four-to-17-year-olds, but profits are estimated to have plummeted by 30 per cent since mid-February.

Greek journalist Yannis-Orestis Papadimitriou, a member of an investigative journalists’ consortium called The Manifold, told BIRN that transparency is the key issue that must be addressed.

“Support for the media is necessary, but distributing money in a habitat like that of the Greek media, which is notorious for its lack of transparency and clientelistic relations, without making clear immediately who gets what and why, is a very serious issue,” Papadimitriou said.

He argued that without transparency, no matter how much support is given, the big issues that shape the media situation in Greece won’t be addressed.

“There is no excuse for a lack of transparency in distributing funds from the government to a media landscape that was already largely abstaining from contesting the government’s actions, even before the coronavirus crisis,” he said.

“It is even more worrying when that happens in a situation in which media, their owners, who are also involved in other sectors of the economy, and the political class have proved to be co-dependent in many ways,” he added.

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