Changes to auditing law approved without opposition’s consent

TIRANA, July 6 – The majority members of the parliamentary economy committee approved on Monday some controversial changes to the auditing law imposing high fines to unregistered accounting experts and firms.
The new changes, which come after the law’s dismissal by the Constitutional Court, were strongly opposed by the opposition Socialist Party which demanded a qualified majority vote of two-thirds for its approval by Parliament.
However, the new changes proposed by government allow the majority to pass the law with a simple majority of 71 votes following the removal of imprisonment article from the law.
The law now envisages only fines of 5 to 10 million Lek (50,000 to 100,000 dollars) for auditing experts or firms which operate without being registered in the public register of accounting experts.
The Socialist Party (SP) said the majority was using a trick by changing the criminal offence to administrative violation to avoid a qualified majority of votes which would require the opposition’s consent.
SP MP Erion Brace, who exchanged insults with majority members, said the law should be sent to the legal affairs committee to reexamine its constitutionality.
Meanwhile, the committee’s chair Edmond Spaho said the law was turned down by the Constitutional Court only because of the imprisonment provisions which should have been approved with 84 votes as changes to the Criminal Code.
The changes to the law came after suspicion of false declarations made by businesses. The decision on fines will be taken by a board of public supervision, according to the government decision.
The changes are aimed at avoiding the camouflage the companies’ real financial situation, a situation which sparked the global financial crisis.
Experts say companies often use double balance sheets declaring lower revenues to avoid taxes and higher revenues when applying for loans.