UNMIK's broad ideas for an eventual pensions scheme including the level of contributions and payments were outlined for the Interim Administrative Council last week. The payments are set to begin in 2002, revealed Central Fiscal Authority (CFA) Co-Head, Tony Preston-Stanley. They have been delayed, DSRSG Tom Koenigs reminded the Council, because past pensions contributions had been paid into a fund in Belgrade-to which UNMIK has no access.

The new UNMIK pensions policy considers several groups: the elderly who have paid into a pension plan but have had no compensation; the elderly who never paid contributions; older workers nearing retirement and younger workers who should now start to pay into a plan. The Department of Health and Social Welfare, which will be responsible for paying out pensions, will immediately need DM 12 million more than its current budget in order to begin payments. This could later go as high as DM 40 million as more reach pensionable age. Current estimates are that Kosovo has 77.000 people over 70 years of age; 200,00 over 60.

On the positive side from a pensions management perspective, families are growing smaller, so that within 15 years the share of pensioners in the total population will start to match the levels of Western European countries. Pension contributions and payments will be incorporated in the Kosovo Consolidated Budget for the year 2002. However, considerable work remains before all the details are finalized. Experts are now studying the set of common principles and will be holding further discussions this week. The CFA anticipates having the first draft of a pension administration regulation by the end of July.

One planning principle, says the CFA, is to avoid an old fashioned socialist-style pensions system, which is too expensive and offers too little coverage. Its replacement will address the needs of all population groups, treat people from all ethnicities equally, and provide a comprehensive, sustainable solution based on a long-term pension fund-rather than a quick-fix solution called for in some political circles.

The immediate beneficiaries of the scheme will be the over 100,000 pensioners in Kosovo who have been waiting for more than two years to receive their pensions. Both UNMIK and Kosovo Albanian political party leaders have been criticized by pensioners who feel that the topic is not high enough in anyone's agenda.

Pensionser have protested UNMIK's inability to pay their pensions many times, demonstrating outside the Government Building in Pristina.

Gerhard Fischer, Deputy to the DSRSG for Civil Administration, explained recently to a three-member delegation that pensions have to come out from domestic resources. The Kosovo Transitional Council is expected to take up the issue of pensions again this week.

No Kosovar Forensic expert for FRY mass graves

Members of the Kosovo Transition Council (KTC) were surprised and concerned last week over the failure of the Kosovo Institute of Forensic Medicine, after considerable negotiation and planning, to send anyone to participate in the exhumation of bodies from mass graves in Serbia-something the KTC itself had been demanding for some time. One member said the Institute's refusal was incomprehensible.

With rare resolution, the Council decided that the issue would be handled in the first instance by the Department of Health and Social Welfare, and if that failed, to call Institute officials before it for an explanation.

The KTC was meanwhile embarrassed, said DSRSG Tom Koenigs, who chaired the session in the absence of SRSG Hans Haekkerup. He also expressed surprise at the Institute's explanation so far that "political advisors had discouraged the experts of the Institute to take part in what is supposed to be "manipulation by UNMIK in its political interest". Far from that, Haekkerup had, following the KTC initiative, taken a personal interest and negotiated agreement at the highest level in Belgrade to allow Kosovo Albanian forensic pathologists to be present during the exhumation process. The Serb side had shown a most co-operative attitude and it was a pity that the Kosovo Albanian side had refused to co-operate, he added.

UNMIK, KFOR interdict Serb convoy

UNMIK and KFOR intervened this weekend to prevent convoys of Serb-registered buses and trucks bearing humanitarian supplies gifted by the Serbia Democratic Socialist Party to Serbs living in Kosovo's enclaves from driving through Kosovo. The move exemplifies potential conflicts between the international community's policies for maintaining security and those to promote Kosovo Serb participation in the Kosovo-wide elections this year.

As in other post-conflict theatres, the style of any political event and the authorities's measures to diffuse difference of interest are crucial. One side, a political party based in Serbia proper wished to promote its cause with part of the electorate. It proposed to bring 300 "witnesses, politicians and journalists" in ten buses to accompany ten trucks of supplies. KFOR felt unable to guarantee their security and argued for a 24-hour delay. The advice was ignored and the convoy crossed the boundary line in the early hours of Saturday morning.

Stopped by KFOR at Leshak/Lesak north of Leposaviq/Leposavic, the solution took over 12 hours to negotiate. All the supplies were transferred to KFOR trucks, each of which carried two representatives from the Serbian group to six Kosovo Serb enclaves in the Mitrovica and Pristina regions.

Briefs . . .

All parties, coalitions, citizens' initiatives and independent candidates will have equitable representation in the media, according to a rule on the role of the media in the electoral campaign, adopted by the Central Election Commission (CEC). The rule also directs Kosovo's media to give free broadcast time for political entities which have been certified by the CEC and equitable access and pricing for those political parties, coalitions, citizens' initiatives and independent candidates who advertise in newspapers and magazines. Under the new edict, there must be a news blackout 24 hours prior to the voting and a blackout on the publication of public opinion polls five days prior to the vote. The rule comes into force in addition to the one passed in June 2001, which requires broadcasters to carry voter information, produced by the OSCE, free of charge.

In a further step aimed at nurturing conditions for democratic developments, the OSCE has inaugurated a new community centre in Globocica (Dragash/Dragas municipality). Designed as places for training and assisting community-based initiatives, similar centres will soon be opened in Vrbovac (Viti/Vitina), Ropotovo (Kamenice/Kamenica), Mitrovica and Zubin Potok. The has placed great effort into assisting many groups through its network of political party service centres and NGO resource centres. These institutions have provided logistical support and advisory services to a wide range of societal actors to help foster the growth of a democratic culture and contribute to the development of civil society.

Voter service and community registration supervisors have started training on all aspects of updating the Voters' List and on community registration, which will start on 30 July. Organized by the OSCE, the training deals with such issues as how to fill in registration forms, prevent fraud and deal with appeals. Of 170 supervisors, 120 will be working in Kosovo while 50 will be based in Serbia proper and Montenegro. The OSCE is committed to holding an election in Kosovo whish is up to international standards and this training is an important means to ensuring that these high standards are met.

Emissions of flue gas particles from Units A3 and A4 of the Obiliq/Obilic power plant will be reduced by 98 per cent as a result of a major overhaul which starts later this month. Special filters and ash removal systems will be installed. The DM 23 million rehabilitation programme is being financed by KfW (DM 12 million), KEK (DM 7 million) and the European Agency for Reconstruction (DM 4 million). Both units should be back in operation by mid-December 2001.

The commercialization of businesses is continuing as two new contracts have been signed by Deputy SRSG Andy Bearpark with the Lipjan/Lipljan Chicken and Fish Farm and the Fapol Plastic Factory in Pristina. The total investment in the two companies will be DM 8 million. The contract for the Lipjan/Lipljan company was awarded to NT 'ADI' from the same municipality, and that for the Fapol factory-which has not been working until now-to CPK, a consortium of five Pristina-based private enterprises. This brings the total number of commercialized companies to eight.

Responding to the BPK campaign to introduce direct electronic payments of wages and salaries, the Department of Public Services has initiated such a system on a trial basis. Payments from UNMIK were credited to three commercial banks which then credited the 41 individual employees who had volunteered to have the payment made to their accounts in different banks. This trial programme will be expanded but UNMIK and the commercial banks must still resolve some technical and organizational problems. It is hoped that this programme will lead to an increase in the number of persons opening bank accounts and a reduced reliance on cash payments.

UNMIK has renewed licences to sell motor vehicle insurance to INSIG, Siguria, Kosova and Dardania companies, albeit on a temporary basis, and established new conditions for auto insurance. Coverage for third party liability insurance has been substantially increased to provide additional protection to policyholders. The new minimum compulsory insurance sums for bodily damage range from DM 100,000 to DM 300,000 and for material damage from DM 50,000 to DM 200,000. Insurance companies are not entitled to provide discounts or bonuses of above 10 per cent of the premium. They also cannot pay commissions of above 15 per cent of the premium to insurance agents and brokers. As of 1 July, Adriatic Insurance Group (AIG) ceased selling insurance coverage in Kosovo. However, AIG will honour all claims of policyholders until the expiration of the last policy sold on 30 May 2001.

The UN Environmental Programme (UNEP) has carried out a survey of priority areas for the protection of the natural environment: Rugova Canyon, Mirusha Falls, Bistrica Valley, Marble Cave, Germia Park, and Ura e Fshajt. The major findings and conclusions still need to be finalized. However, preliminary findings indicate that the construction of a swimming pool in Ura e Fshajt, the lack of management for the marble cave, new development pressures on the Bistrica Valley due to its vicinity to Prizren can cause major, irreversible damage. Mirusha Falls also faces pressure to develop it for recreational use that could be detrimental from the environmental angle.

The first group-102 doctors-has finished training in family medicine organized by the World Health Organization (WHO). Fifty-two of them, who had earlier a previous specialization or more than 10 years of practice, were recognized by the Department of Health and Social Welfare as Specialists in Family Medicine. The remaining 50 will enter their second year of residency and later be recognized as such specialists. Fifty doctors from both groups have also undergone a Training for Trainers course. These will assist the WHO in conducting the next courses for approximately 250 doctors currently working in primary health care, the first one starting in September this year.

The inaugural meeting of the Public Transport Advisory Board took place on 9 July. The Board will review, monitor and recommend proposals for the introduction and implementation of public transport regulations. The new body includes an independent Chairperson, one representative from each: Socially Owned Enterprise, private operators, Kosovo Chamber of Commerce, KFOR, UNMIK Police and Kosovo Police Service, and the Director-General of the Public Transport Directorate.

In view of the reported large scale illegal quarrying being done in Kacanik municipality (Gjilan/Gnjilane region), a survey was undertaken by the UNMIK municipal authorities. Two on-site visits were made by a team to estimate the damage done by quarrying activities as well as the amount of rock and gravel illegally removed. As a consequence of this operation, 18 notices have been issued to cease quarrying operations in line with the directives of the Department of Trade and Industry.