Moldova's Mayoral Reform Raises Questions Over Assets and Debt

Opinion: The reform of local authorities leaves the issue of assets, budgets and debts unresolved

The transfer of assets, budgets, debts and ongoing contracts following the abolition of local councils remains one of the issues requiring clarification within the reform of local public administration.

Elena Grițco

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MP Elena Grițco warns that the lack of a clear transition mechanism could lead to legal and administrative problems, as well as disruptions to the provision of public services.

In her view, before changing the administrative structure, it must be established how responsibilities and resources will be allocated amongst the new administrations.

“It is not enough simply to abolish an institution by law. You must ensure the continuity of all the functions it performs. Who will take over the management of assets, land, buildings and municipal enterprises? Who will take over ongoing contracts, debts and financial obligations? How will budgets, accounts, archives and databases be transferred? “What will happen to the employees and specialists who currently ensure the functioning of the local councils?”, said Grițco at a press conference.

According to the MP, it also remains unclear who will be responsible for ongoing infrastructure projects, public procurement, land registry documents, building permits and citizens’ requests following the reorganisation of the local authorities.

Grițco warns that the transfer of assets and liabilities, the reorganisation of staff and the relocation of archives could lead to disputes and administrative deadlocks. At the same time, the new local councils risk taking on additional responsibilities without sufficient specialists and without adequate financial resources.

It should be noted that, according to statements by the authorities, the reform will involve the redistribution of powers and financial resources amongst local councils, the future regions and the territorial structures of the central public administration. The current legislative package represents only the first stage of the reform. Further changes, including in the areas of local public finance and service delivery, are yet to be drawn up.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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