а) Description of the situation By adopting the Law on the Financing Political Activities (“Official Gazette of the RS”, No. 43/11), the Republic of Serbia has substantially improved the legal framework in this field. However, in practice, certain legal solutions proved to be deficient, particularly in terms of obligations of the persons connected to political entities, the use of public resources, and obligations of the authorities competent for the control of the financing of political entities. No external audit of political entities has been carried out until the present day as they are not provided for by the Law as mandatory subjects of the audit conducted by the State Audit Institution (SAI). An additional difficulty in this filed makes the lack of necessary capacities of the authorities competent for the control of financing activities.
The Anti-Corruption Agency (ACA) has achieved significant results in the field of prevention of conflict of interest regarding the incompatibility of functions. However, the issue of conflict of interest, in terms of elimination of the influence of the private interest of the persons performing a public function, has not been regulated properly, which inhibits actions of the ACA. Therefore, it is necessary to specify and provide mechanisms for monitoring and consistent application of the provisions on the conflict of interest and increase accountability and transparency in actions. In the field of control of property and incomes of public officials, the ACA has faced difficulties related to the verification of accuracy and completeness of property and income reports and to keeping a register. The main deficiencies in practice are a loosely defined legal term, rights and obligations of a public official and non-existence of a range of public functions. Furthermore, imprecisely defined powers and duties of the ACA in the control procedure, as well as inadequate cooperation with competent authorities, further complicate the procedure of verification of data in submitted property cards.