INTERNATIONAL CRISIS GROUP: "CORRUPTION THREATENS STABILITY IN MACEDONIA"

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06728912
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: December 28, 2022
• Document Release Date: May 8, 2018
• Case Number: F-2017-00089
• Publication Date: August 15, 2002

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CENTRAL INTELLIGENCE AGENCY
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Balkan Update
15 August 2002
Macedonia Development
International Crisis Group: "Corruption
Threatens Stability in Macedonia"
A report released yesterday by the Brussels-based
International Crisis Group (ICG) highlights extensive
corruption in Macedonia involving high-ranking
government and party officials on both sides of the
ethnic divide. The corruption is so endemic,
according to ICG, that it threatens to undermine the
This report was prepared by the Office of Russian and European Analysis. Comments and queries are
welcome and may be directed to the Manager, OREA,
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international community's efforts�outlined in the
Ohrid Agreement�to promote stability through
economic development and integration. In addition
to diminishing the government's ability to provide
services to its citizens, corruption and patronage
undermine its credibility and deters the foreign
investment that Macedonia needs to drive economic
recovery.
� Customs officials interviewed by the ICG allege
that Customs Director Daravelski is coercing
businesses into using a favored freight-forwarding
firm or face possible shipping delays, hiked fees, or
confiscations.
� Another scheme cited in the report alleges that the
Internal Macedonian Revolutionary Organization-
Democratic Party for Macedonian National Unity
(VMRO-DPMNE) party is using the Health
Insurance Fund (HIF), which controls the country's
medical market, to shake down drug suppliers for a
"contribution" to the party in exchange for drug
sales to the HIF. One supplier told ICG staff that
the "contribution" had been raised to 30 percent of
the value of the goods sold "because it is an election
year."
VMRO-DPME leaders are likely to claim that the
timing of the report's release is aimed at bolstering
the electoral prospects of the rival Social
Democratic Alliance of Macedonia (SDSM). The
ICG acknowledged that the timing of the report's
release would enable SDSM officials to use it for
political gains in the runup to 15 September
legislative elections, but warned that a regime change
is unlikely to rid the government of its corrupt
practices and patronage systems. The report urges the
public and international community to become more
involved in pressing Macedonia's officials to reform
from within.
� A July survey by local media shows that the public
sees agencies, such as the customs service,
privatization agency, and public health system, and
two of the leading political parties�the VMRO-
DPMNE and the Democratic Party for Albanians
(DPA) �as institutions where corruption is most
deeply rooted.
� Topping the survey's most-corrupt list was Prime
Minister Georgievski, Daravelski, Development
Agency Director Stankov, and DPA Chairman
Thaci.
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