TABLE OF CONTENTS
- REPORT TO THE TREASURER PAOLO VIGEVANO ON THE RADICAL PARTY'S BUDGET - From 1 January to 30 September 1991.
- The Radical Party's asset and liability statement at 30 September 1991
- The Radical Party's profit and loss account from 1 January 1990 to 30 September 1991
- Budget enclosures
- Board of Auditors report
Copy of the Radical Party's budget for years 1989 and 1990, prepared and presented in conformity with law No.659 of 12 November 1991 and subsequent modifications
Membership section data on the Radical Party's membership trend
ħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħ
REPORT TO THE TREASURER PAOLO VIGEVANO
ON THE RADICAL PARTY'S BUDGET
From 1 January to 30 September 1991.
For the preparation of this budget a unified scheme was used for the first time, relative to the management of all of the party's proceeds, including those resulting from the public financing which the Italian legislation provides for parties represented in Parliament.
This has been possible on the basis of a formal deliberation adopted by the party's Secretary, by the Treasurer, together with the President of the Federal Council and with the President of the Party, in conformity with the congress statutory powers attributed to them by the 35th Budapest Congress (See enclosure No. 5).
Such unified scheme was adopted also in fulfilment of a precise request on the part of the board of auditors on the occasion of the last approval of the party's budget.
The budget submitted for approval on the occasion of this session of the Federal Council refers to the period between 1 January 1990 and 30 September 1991.
Profit and loss account.
The most significant element in the profit and loss account is represented by the L.4.189.896.157 surplus, which is the result of revenues amounting to L.10.307.819.967 and losses amounting to L.6.117.923.810.
Proceeds.
The proceeds are represented by:
- the shares of public funds relative to years 1990 and 1991, amounting to L.2.734 million and L.2.944 million respectively. Such values are net of the shares kept by the parliamentary groups (10%) and of interests paid to banks, which were canceled during 1991, while L.41 million of interests earned were recorded during the year (see enclosure No. 4, item "profit on securities").
- from self-financing, for the amount of L.1.682 million
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- from allowance shares, for the amount of L.1.967 million, which the elected members of the Italian and European Parliament pay to the Radical Party on a monthly basis;
- from the sale of copyright, for the amount of L.800 million. The Radical Party has sold L.400 million worth of copyright for the exploitation of all televised material produced from 1988 to 1990 (over 600 hours of recordings) on the occasion of demonstrations, rallies, congresses. L.400 more million come from the sales of copyright relative to the use of the data of the Centro di Ascolto sull'informazione radio-televisiva to the Torre Argentina Servizi S.p.a. (*), which will see to their commercial exploitation for a period of five years.
Expenses.
For an analysis of the expenses, but especially for a detailed description of the activities carried out, refer to the documents presented on the occasion of the first session of the Federal Council in February in Rome (Economic and financial analysis of the Radical Party for 1990, Report of the First Secretary Sergio Stanzani at the Third Italian Congress). This part contains a concise survey only.
The party's expenses have been considerably limited compared to the previous years, thanks to a drastic reduction of the party's structure and the quasi total block of the "activities", implemented during the whole of 1990 and the first part of 1991. The realization of the political project "The New Party" was activated only in the second part of 1991. At 30 September the budget already included about L.740 million of expenses for such project, while the overall expenditure during the year for the production of five issues will amount to about L.2 billion. The expenses for the installation and operation of the structure necessary for the production of the newspaper account for 15% of the overall expenditure (approximately L.300 million), while 45% of the costs (approximately L.900 million) is represented by the production and distribution of the fifteen editions sent to over 40.000 parliamentarians, while the remaining 40% (approximately L.800 million) is due to further dispatches of each issue, with an aver
age of 240.000 copies per issue, sent to other addressees, prevalently in the Soviet Union, Czechoslovakia, former Yugoslav Republics, Hungary and Italy. This considerable extension of the number of addressees will need to be verified when the newspaper will pass from the current 12-page format to the planned format, consisting of 70-80-page parts.
The expenses for "activities" relative to political initiatives carried out in Italy amount to L.531 million (L.288 million in 1990 and L.243 million in 1991), while those carried out in the other countries amount to L.984 million (L.506 million in 1990 and L.478 million in 1991). The operation of the Budapest centre accounts for about 50% (L.440 million) of the expenses covered in countries other than Italy. Such centre in 1991 coveredthe production of
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the Radical Letter and saw to the printing and distribution of "The New Party" in Hungary, sCzechoslovakia, Poland and Rumania, and which accounts for about L.200 million of the centre's overall expenditure. The activities in the Soviet Union and in Czechoslovakia account for L.110 million and L.45 million respectively on a yearly basis.
The party's expenses for remunerations amount to L.878 million, 606 of which for activities carried out in Italy and 278 for activities carried out directly in the other countries.
The overall number of the remunerations which are currently paid by the Radical Party (19) is the same as in late 1990.
Of these people, 14 operate prevalently in Italy and 5 prevalently or on a stable basis in the other countries. A number of remunerations (5) are also paid to local collaborators in the offices of Budapest, Moscow and Prague.
The Radical Party has no subordinate employees, but only collaborations which are regulated by special contracts. The switchboard, accountancy and logistic services are managed directly by the T.A.S. S.p.a. through its own employees (7 people). The party pays a fee for the supply of services and for the use of the premises to the T.A.S. S.p.a., which amounts, for the period taken into account, to L.209.913.248. In such way it has been possible to keep the number of collaborations directly paid by the party unaltered, even in a period of particularly intense activity.
The liabilities side of the profit and loss account includes L.608 million of contingent liabilities, L.587 of which were already recorded at 31 December 1990 and only 21 of which refer to the first nine months of 1991.
A consistent part of the liabilities (L.152 million) are the result of the expenses covered at the end of 1989 for the purchase of advertisement space on newspapers during the electoral campaign for the Municipality of Rome. Such expense was necessary to subdue the damage caused by false information divulged to the detriment of the Radical Party, and had been authorized by the first-degree judge, to be paid by the damaging part. However, the higher-degree judge did not confirm the measures established by the first-degree sentence.
Moreover, the party has had to pay a certain number of compensations decided by the court, relative to collaborations, for an overall amount of L.204 million, as well as expenses to cover damages in the former headquarters, amounting to L.80 million. The remaining liabilities are represented for approximately L.95 million by extra expenses for Congresses, meetings of the Federal Council and demonstrations held in the three previous years, for the amount of L.40 millions by credits which can no longer be claimed, for L.17 million by legal expenses relative to judicial proceedings concluded after a period of fifteen years, while the remaining L.20 million are the result of various expenses, prevalently for fines of different types.
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Asset and liability statement
The asset and liability statement contains assets amounting to L.3.283.550.070 and liabilities amounting to L.1.568.852.240, and a cash balance of L.1.720.697.546. The difference compared to the revenues listed in the profit and loss account - amounting to L.2.469.198.611 - expresses the proportions of the financial recovery achieved compared to the closing of the previous financial year (31 December 1989).
Assets.
The following items of the assets side are worthy of a detailed analysis:
Holdings.
The holding relative to the T.A.S. S.p.a. has remained unaltered, whereas the one relative to the SO.G.EM. S.r.l. has increased by L.6 million as a result of an increase of the capital stock. As far as this company is concerned, which owns "Radio Radicale", the radical party's organ, it should be noted that the capital stock is currently owned entirely by the party.
Loans.
The L.274 million loan for the increase of the capital stock of the Centro di Produzione S.r.l. comes from the temporary waiver of a part of the credit which the party claimed vis-à-vis the Centro di Produzione itself. The waiver in favour of Paolo Vigevano (president of Radio Radicale) was made necessary for the underwriting of the capital increase provided by the law for the regulation of radio and television broadcasting, passed in 1990.
The loans amounting to L.1.176.853.270 granted to the T.A.S. S.p.a. were used exclusively to finance part of the works for the renovation of the premises (L.1.405.815.697), in addition to which the T.A.S. S.p.a. has made investments in facilities, equipment, computers, furniture as well as copyright amounting to L.976 million.
The investments that were not financed by loans of the Radical Party were covered by a loan amounting to L.1,000 million granted by the IRTA S.r.l., the financial company of the television sector which detains a shareholding in the T.A.S. S.p.a.
The current management of the T.A.S. S.p.a. is entirely covered by autonomous proceeds.
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Other credits (See enclosure No. 1).
The item "other credits" includes credits of the party vis-à-vis members of Parliament and senators for allowances which have not been paid to the party at 31 December 1990, amounting to approximately L.73 million. The credit for allowances has increased considerably throughout 1991 (it will be entered in the budget at the end of the year) also as a result of the raise in the allowances which has been given to members of Parliament and senators of the Italian Parliament. At 30 September, the party's credit amounts to approximately L.260 million, 60 of which refer to the allowance increase which was given in a single payment and which have still not been paid to the party.
Among the other credits, the ones than can surely be claimed amount to L.437 million, while it is not sure that the others may still be claimed. The credits of the Cooperative Edizioni Radicali (**) are on the contrary entirely claimable.
Liabilities
The liabilities side highlights a reduction of current and medium-term debts (See enclosure No. 3) toward suppliers amounting to L.984 million and towards banks amounting to L.2.800 million.
(*) Torre Argentina Servizi S.p.a. (indicated with T.A.S. S.p.a.) is the company that owns the apartments of Via di Torre Argentina 76 in Rome, the Radical Party's headquarters. The Centro d'Ascolto on radio and TV information is a structure belonging to the Radical Party which records and analyses the political information and all programs broadcast by national public and private television networks in Italy.
(**) The Cooperative Edizioni Radicali is a company entirely controlled by the Radical Party which sees to the party's activities in the field of written and computerized communication. The budget of this cooperative is entirely incorporated into the party's budget.
ħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħħ
THE RADICAL PARTY'S ASSET AND LIABILITY STATEMENT
at 30 September 1991
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* ASSETS *
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Current assets
Cash and bonds 187.967.986
Banks 50.593.927
postal current account 10.980.538
Holdings in subsidiary
companies
T. Arg. Servizi Spa 330.000.000
SO.G.EM. S.r.l. 25.070.000
Loans
Centro di Produzione Srl 33.265.873
" for capital increase 274.000.000
Torre Argentina Servizi 1.173.013.012
Other credits
of the Party 667.307.582
of the Cooperative 135.323.108
Credits towards clients
of the Cooperative 80.130.123
Depot (Works of art) 6.950.000
Equipment and facilities
(net) 308.947.921
TOTAL ASSETS 3.283.550.070
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* LIABILITIES *
****************************************
Banks 142.368.299
Various debts 29.670.929
Debts toward suppliers 617.909.508
Advances
from Chamber 74.595.588
Loans
from Chamber Group
from Senate Group 100.000.000
from IRTA s.r.l.
Medium-term debts 598.308.200
TOTAL LIABILITIES 1.562.852.524
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TOTAL ASSETS 3.283.550.070
TOTAL LIABILITIES 1.562.852.524
SURPLUS 1.720.697.546
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THE RADICAL PARTY'S PROFIT AND LOSS ACCOUNT
from 1 January 1990 to 30 September 1991
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* LOSSES *
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Structure expenses
Italian Congress 238.530.446
Federal Councils 267.936.979
Secretariat:
Remunerations 124.004.933
Meetings-Seminars 8.846.214
Travel-Accomodation-Transport 66.448.645
Other expenses 14.264.122
Treasury:
Remunerations 132.554.683
Other expenses 7.365.365
Section in charge of membership:
Remunerations 92.679.976
Other expenses 27.847.335
Total structure expenses 980.478.698
Total expenses for operation and services
Rome offices
Remunerations 183.681.955
Other expenses 825.151.556
T.A. Servizi S.p.a. 209.913.248
Informazion:
Other expenses Italy 301.917.211
Other expenses abroad 167.126.623
Translations 9.821.814
Mailing lists 18.780.546
Total expenses for oper. and serv. 1.716.392.953
Activities
Conventions 16.923.977
Activities in Italy
Remunerations 25.925.930
Petitions, referendums,
other demonstrations 485.496.311
Electoral campaigns 3.045.750
Activities in other countries:
Coordination Centre Brussels:
Remunerations 9.070.613
Other expenses 9.052.169
Coordination Centre Budapest:
Remunerations 37.727.934
Other expenses 400.725.277
Other countries
Remunerations 231.142.811
Other expenses 257.677.820
Electoral campaigns 38.399.038
Project "THE NEW PARTY":
Remunerations 79.611.448
Other expenses 662.616.319
Agorà:
Remunerations 273.269.029
Other expenses 282.113.584
Total activities 2.812.798.010
TOTAL LOSSES 5.509.669.661
Contingent transactions 608.254.149
TOTALE LOSSES 6.117.923.810
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* PROFITS *
*************************************************
Public financing 5.678.552.982
Self-financing:
Memb. fees 1990 713.148.265
Memb. fees 1991 800.060.199
Contributions 168.982.037
Emoluments of representatives 1.967.161.146
Electoral refunds exceeding
credits towars lists 91.175.200
Copyright proceeds 800.000.000
Other profits 88.740.138
TOTAL PROFITS 10.307.819.967
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TOTAL LOSSES 5.509.669.661
TOTAL PROFITS 10.307.819.967
BALANCE 4.798.150.306
Contingent transactions 608.254.149
BALANCE 4.189.896.157
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ENCLOSURE No.1
OTHER CREDITS OF THE PARTY:
Caution money 3.000.000
Other various credits 47.138.249
Debtors Representatives and Senators 72.795.355
Loan CO.R.A. 3.041.740
Debtor Brussels 39.958.541
Debtor Trieste 1.700.000
Debtor L.I.A. 32.626.149
Debtor Moscow 75.459.763
Debtor Yugoslavia 37.630.632
Debtor Czechoslovakia 38.589.134
Debtor Poland 2.891.000
Referendum committee 380.100
Debtor Rumania 625.569
Debtor A.R.CO.D. 29.000
Debtor Burkina Faso 188.350
Advance for Referendum '91 8.254.000
Asterix s.r.l. 303.000.000
667.307.582
OTHER CREDITS OF THE COOPERATIVE:
V.A.T. 114.866.870
STATE-IRPEG AND PART PAYMENTS 283.099
Caution money 500.000
Anticipated leasing fees 7.673.139
Suppliers-advance payments 12.000.000
135.323.108
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ENCLOSURE No.2
VARIOUS DEBTS:
Withholding taxes to be paid by Party 20.111.479
Withholding taxes to be paid by Cooperative 8.129.240
Todaro 1.430.210
29.670.929
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ENCLOSURE No.3
DEBTS TOWARD SUPPLIERS
current
of the PARTY D E B I T C R E D I T
A.G.F 160.650
ALBERGO NAZIONALE 6.419.000
A.T.E.R. 224.200
AVIS AUTONOLEGGIO S.P.A. 4.701.393
UPS-ALIMONDO S.R.L. 3.304.374
A.R.T.- AG.ROMANA TRADUZ. 6.126.120
BONELLI BOLOGNA BUS 2.300.000
CANDIDO AURELIO 10.054.080
CRP S.R.L. 535.500
CAFFE' CAVOUR 109.000
CENTROCARTA F.LLI PALMA 9.520
COOP 2001 778.260
ESEDRA 12.703.753
EXPO 499.800
EUROPCAR S.P.A. 1.251.961
EDITOR GRAFICA 20.559.300
ENGIPROGRAM 3.379.010
EMME DUE GRAFICA S.N.C. 3.927.000
FRANTOUR TOURISME 724.595
GAMMA TOURS 444.500
GIBIPI S.P.A. 223.720
GIACALONE SPEDIZIONI 2.385.950
HOTEL ERGIFE 5.000.000
IDRA TRAVEL TURISMO 23.686.480
INTER TV 1.654.360
INTERPRETI DI CONFERENZA 2.927.400
ITALPUBBLISERVIZI 2000 2.263.380
INFOCOM 4.011.957
JOHNSON ROLTELEX 257.240
JACKY MAEDER S.P.A. 21.134.630
KOMSOMLSKAJA PRAVDA 41.600.000
MERLO 3.332.000
A.MANZONI & C. S.P.A. 3.653.300
TVV-TELEFAX 971.847
POSTEL 204.425
PAN EDIT 119.000
QUINTA RETE 1.180.000
ROMA UFFICIO S.A.S 1.547.000
RADIO DELTA 1 238.000
RADIO SOLE NETWORK TV 297.500
S.I.P. TELEFONI S.P.A. 59.810.245
SEAT DIVISIONE STET 9.135.000
SPINOSI 36.301.913
SPEEDY BOYS 834.000
SINNOS 10
SPORTING S.R.L. 3.241.700
TR56 84.760.010
TELETIC 413.192
UNITECH OWT 2.587.795
32.168.582 359.815.488 327.646.906
of the COOPERATIVE
AP THE ASSOCIATED PRESS 1.445.850
AGENZIA CONTRASTO 1.178.100
CO.LA.GRAF. 6.760.000
CEMIT 31.274.483
EUROTECH 1.249.500
GESTETNER 269.089
GRAFICA PALOMBI 181.220.739
MISCO 530.026
ROMA UFFICIO 5.307.265
SIP 3.984.900
SINNOS 23.437.050
SEAT 31.356.500
SEMANTICA 2.249.100
290.262.602 290.262.602
617.909.508
medium-term
of PARTY D E B I T C R E D I T
PUBLITALIA 350.288.400
ODEON 248.019.800
598.308.200 598.308.200
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ENCLOSURE No. 4
OTHER PROCEEDS
Active interests 3.774.029
Discounts on travel fares 4.499.422
Discount on advertisement 10.732.320
Profits on currency exchange 19.170.970
Profits on bonds 41.030.955
Proceeds from Cooperative 9.532.442
88.740.138
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ENCLOSURE No. 5
The First Secretary of the Radical Party Sergio Stanzani, the Treasurer Paolo Vigevano,
together with
the President of the Party Emma Bonino, the President of the Federal Council Marco Pannella,
Having regard to
the deliberations of the 35th Congress of the Radical party in Budapest concerning the use of all the party's resources for the achievement of its objectives and to avert its discontinuance,
having regard to
the reports and the deliberations passed by the Federal Council from 1988 on, concerning the destination of the party's resources,
having regard to
the contents of the repeated requests of the party's board of auditors, and especially on the occasion of the report presented at the 35th Congress of Budapest, which advocates the adoption of a unified budget for the party's funds and for the funds of the public financing,
on the basis of the congress statutory powers attributed to them by the 35th Congress of the Radical Party
deliberate
to adopt a unified budget scheme starting from the current financial year, relative to the management of all of the party's proceeds, including those coming from the public financing,
charge
the treasurer with the task of preparing the necessary modifications to the party's financial regulations.
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Report of the auditors
on the Balance of the Radical Party
from 1st January 1990 to 30 September 1991
Comrades,
this year the Radical Party will not present two separate budgets, one relative to the Party and one relative to the Public Financing, as it has in the past. This was decided to fulfil the request addressed to the Treasury on the occasion of the last report of the Auditors of 29 December 1989, owing to the extraordinary nature of the party's current management. The budget is therefore single.
The situation of heavy indebtedness toward banks and suppliers, through guarantied by public financing and by real estate assets, has been reduced to L.739.354.809.
It is dutiful to thank the Treasurer, the First Secretary, the President of the Party and the President of the Federal Council for having kept alive a party which was on the verge of ceasing owing to financial reasons.
In the asset and liability statement, under the item "Cash and bonds", by bonds we mean cheques on deposit.
The "Loan to the Centro di Produzione", amounting to L.274.000.000, to increase the capital stock, was made to comply with law requirements.
The amount of the "Other credits of the party" should in fact be reduced to L.470.264.593, as there are documents being processed for a total of L.197.042.989 for the covering of expenses. We guarantee that the credits are claimable, in that the contributions which members of Parliament Azzolina, D'Amato and Viviani should have paid have not yet been entered; Member of Parliament Mauro Mellini, while the only member of Parliament of the European Federalist Group not to be a member of the Radical party, duly pays his share.
Concerning the Profit and Loss Account, we would like to draw your attention on the fact that the "Structure expenses for Federal Councils", amounting to L.267.936.979, do not include the costs actually covered for the Federal Council of January 1990 and for the one of September 1991, because as far as the latter is concerned, to date only expenses amounting to L.74.452.766 (compared to an estimate expense of L.200.000.000) have been entered, as we are still waiting to receive the charges.
As to the editorial "project" of "The New Party", we would like to point out that the sums paid and partly covered also by the Coordination Centre of Budapest, include issues No. 1 and 2 and 90% of issue No.3. Two more issues are planned at the moment, with an estimated expense amounting to L.700.000.000.
As far as "Agorà" is concerned, the economic proceeds of the activity are not entered in the budget, as they are pertaining to the Torre Argentina Società di Servizi S.p.A..
The "Liabilities" side include a consistent sum; this is due to the fact that they include L.152.135.937 of costs covered for the municipal electoral campaign in Rome in 1989, L.283.301.695 for severance pays and the abrogation of leases, and L.40.000.000 for an old credit vis-à-vis the 'Amici della Terra', which can no longer be claimed.
The profits for "copyright sales" refer to two shares of L.400.000.000, cashed following the marketing of the material produced by the Centro di Ascolto Radiotelevisivo and of all the TV recordings made by the Radical Party from 1988 to 1990.
We have checked the budget, by means also of a sample control of the accounting data and of the relative documents, and we judge it to be correct.
Two members of the Board of Auditors have witnessed the auditing of the Budget made by the Chamber Technical Committee and by the Auditors appointed by the Association of Accountants.
As information of general interest, we inform you that a legal suit is open on the subject of two former collaborations. We also inform you that the members of the Italian and European Parliament and the Senators keep L.4.000.000 for themselves monthly; the Regional Councillors pay 20% of their emoluments to the Party and L.500.000 to the CO.R.A.. In consideration of the economic-financial estimate illustrated by the Treasurer at the 1st Session of the Federal Council in Rome from 19 to 22 September, we believe that at the current state of the assets, the resources are insufficient for the continuation of the activities.
We invite you to approve the Budget as it is proposed to you.
Sergio ROVASIO Antonino TAMBURLINI Alberto TORZUOLI
