Analysis of pre-election period advertising and communication funds of local authorities National Audit Office of Estonia Anneliis Arm, auditor Warsaw, October 2015

Screenshots of some TV clips

Outdoor media ´Photo: Erakogu/Tartu Postimees Photo: Mihkel Maripuu/Postimees/Scanpix Baltics Photo: Peeter Langovits/Postimees/Scanpix Baltics Photo: Mihkel Maripuu/Postimees/Scanpix BalticsPhoto: Rauno Volmar/Delfi/Eesti Ajalehed

Auditing local authorities  The National Audit Office of Estonia (NAOE) has had the right to audit the use of the municipal assets and money of local authorities since  The NAOE cannot assess the expedience of the activities and use of money by local authorities in order to avoid conflict with the principle of autonomy of local authorities which derives from the Charter of Local Self-Government. In other words, the NAOE cannot conduct performance audits in local authorities.  In connection with conducting compliance audits among local authorities we have started to debate whether the formal compliance with the law is which fulfills NAOE objective or should the compliance with the meaning of the law be assessed?

Analysis of pre-election period advertising and communication funds of local authorities  The NAOE audited the expenses of the information activities of 15 local authorities in 2012 and 2013 in order to obtain an overview of the content and size of these expenses.  Two local authorities (Tallinn, Tartu) were selected on the basis of the analyzed data where the expenses were analyzed in great detail to assess their legitimacy.  The criteria by which the opinion was given was an interpretation of the meaning of the law that the information expenses of local authorities, just like the amounts spent on any other activities, can only arise from public interest. It did not derive explicitly from the law, but nevertheless audited local authorities agreed that it should be this way and herewith the criteria was in place.  The central question was whether the funds of the local authority have been used to advertise politicians and parties before the local elections of Statement of accounts and budgets of local authorities were analyzed by NAOE. Information forwarded through TV clips and posters where assessed by external experts (semiotician, advertising experts). Interviews with officials of local authorities were carried out by NAOE.  In relation to potential advertising we focused on television, radio and outdoor media among the various ways of giving information.

The results of the analysis

1. Use of advertising and communication funds concentrated into pre-election period (1)

1. Use of advertising and communication funds concentrated into pre-election period (2) January February MarchApril May June July August September October November December

2. The unusual behavior of the agencies in the period leading to the elections (1)

2. The unusual behavior of the agencies in the period leading to the elections (2)

What did we conclude on the basis of the audit? (1)  The amount spent from the budget of Tallinn on information that can be construed as election advertising was ca 337,000 euros. The NAOE is of the opinion that this information was not based on the need to act in public interest, but it was intentionally political and its impact was amplified in confluence of different notifications.  In addition to the elements of election advertising in the messages of the information, the NAOE also identified facts in the transactions related to the notifications that suggest the city planned to seek political influence.  It also became evident that on top of adding political nuances to messages, the city also started giving information about events of which the general public is usually not informed on such a massive scale, such as the completion of investment projects.

What did we conclude on the basis of the audit? (2)  In Tartu the evidence collected in the course of the audit gives no reason to claim that the event was supported in order to communicate information that advertised politicians or parties. However, representatives of local authority should avoid situations where they promote events supported by the city via themselves as a person, which makes it look like election advertising.  The NAOE is of the opinion that the laws of Estonia are currently inadequate and cannot efficiently prevent election advertising for the money of public agencies. The NAOE considers it necessary for the Parliament to continue reviewing the laws that regulate advertising and the financing of political parties. The NAOE also advises that the Political Parties Act be amended by giving the PPFSC the status of a body that exercises state supervision with the right to apply the state supervision measures set forth in the Law Enforcement Act

THANK YOU FOR YOUR ATTENTION!