PRESS RELEASE The Fight Against Corruption on Standby Until Election Year

Sarajevo, January 8, 2025

In September of last year, the Government of the Federation of Bosnia and Herzegovina (FBiH), under its Prime Minister Nermin Nik?i?, announced the establishment of what was colloquially termed the “federal USKOK” by the end of the year. As we bear witness, this institution has not been established, while a significant sum in rent for its premises continues to be regularly paid. Naturally, these expenses are covered by taxpayers—citizens—yet no minister who voted for such a decision during the telephone session will bear any responsibility, as usual. Following the recent, somewhat surprising decision on the minimum wage in FBiH, after a two-year saga of announcements and the adoption of a set of fiscal laws, the government’s irresponsibility in fulfilling its promises may no longer come as a shock. The declarative platitudes about prioritizing the fight against corruption, made before assuming office, are nearly forgotten. The Law on the Prevention of Conflicts of Interest in the FBiH Governmental Bodies, which the previous government submitted to parliamentary procedure in August 2022, likely awaits in some drawer until appointments to the remaining positions are completed. The same applies to the establishment of a parliamentary commission tasked with addressing cases of conflict of interest at the FBiH level, in accordance with applicable legal regulations. Their counterparts at the state level also exhibit disinterest and irresponsibility regarding the implementation of the Law on the Prevention of Conflicts of Interest in the Institutions of Bosnia and Herzegovina, adopted by the Parliamentary Assembly of BiH during the 11th extraordinary session of the House of Representatives held on March 8, 2024, and the 3rd extraordinary session of the House of Peoples held on the same day.

The aforementioned law, for which citizens and civil society waited several years, has also stalled at its very inception. After an initial burst of enthusiasm and self-praise that a genuinely European law had been adopted, it is evident that the process of appointing commission members—selected based on competence, reputation, and expertise—has not been completed. Article 38 of the said law stipulates that within 30 days of its entry into force, the Parliamentary Assembly of BiH will initiate the procedure for appointing commission members and complete it within 90 days. Despite initial delays in this part of the legal framework, the appointment process itself has been somewhat compromised by the selection of certain commission members. The current vacuum is being somewhat populistically exploited by opposition representatives on the still-functioning commission through the initiation of specific investigations. However, these investigations are unlikely to achieve a consensus among the ruling majority within the commission, or the newly appointed commission members may create their own work programs.

The situation is no better at the entity level in Republika Srpska (RS). The Anti-Corruption Commission of the National Assembly of RS formed only two cases related to conflicts of interest over the past year. A significant number of public enterprises continue to operate under long-term appointments of acting directors, despite clear legal restrictions on the duration of such temporary appointments. Moreover, over 60 companies and a significant number of officials are listed on the OLAF sanctions list by the U.S. administration. Nevertheless, this does not provide a basis for initiating specific procedural actions by either the commission or the prosecutor’s offices. It hardly seems necessary to mention the size of the presidential budget, managed discretionarily by Milorad Dodik, which amounts to BAM 55 million and, according to the latest proposal, has risen to BAM 77 million. For any reasonable citizen, this is akin to rubbing salt in the wound, yet for the relevant audit services and anti-corruption commissions, it appears to be a non-issue.

Summarizing the above, it creates the impression that the authorities are not working in the interest of citizens or toward EU integration—despite their fervent advocacy for it in public statements—but rather for narrow party and political interests. While not placing blame solely on the current authorities in BiH, as significant responsibility also lies with their predecessors, it is nevertheless distressing and disheartening to note that, 30 years after the war, we have only reached 40% of the average EU standard of living. Even more discouraging and frustrating is the recent revelation by the World Bank Group for BiH, indicating that our country would need over 100 years to reach the standard of living in the EU if it continues growing at its current pace. Political fragmentation, and particularly corruption, have been identified as factors hindering faster progress.