Bosnia: Public funds squandered

Around EUR 15mn were misspent in one of Bosnia’s entities in 2006 due to lack of internal controls and violations.

Izvor: BIRN

Sunday, 23.09.2007.

10:12

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Around EUR 15mn were misspent in one of Bosnia’s entities in 2006 due to lack of internal controls and violations. A report released by the Auditor’s Office of the Federation of Bosnia and Herzegovina on Thursday noted irregularities, and legal violations in all 10 cantons of the entity which brings together primarily Bosniaks (Muslims) and Croats. Bosnia: Public funds squandered None of the cantons passed the audit with positive marks, but four of them received so-called “conditional assessments” which means they can get a positive evaluation once some corrections and improvements have been carried out, said chief auditor Ibrahim Okanovic. “Breaching legal regulations on handling the budget was registered in two cantons,” Okanovic said. “Internal controls also failed in some areas involving the payment of wages, allowances and commissions. This irregularity was registered in all cantons.” Violations of the law on public procurement are seen as one of the biggest problems in the administration. The ten cantonal budgets last year amounted to a combined total of 1.7 billion KM (EUR 867mn), which is more than the Federation’s entire budget. Out of those funds, the cantons spent 21.5 million KM (EUR 11mn) on public procurement. “Major irregularities were noted due to the violations of the public procurement law, and obviously there are reasons why this was being done,” said Okanovic, adding that preferential status allowed even unregistered companies to participate in public works. Okanovic complained that although the auditors informed parliament about the irregularities three months ago, MPs have yet to discuss the report. Auditors have been issuing detailed reports for several years, but analysts say no legal action has been taken by the authorities, and similar problems keep being reported year after year.

Bosnia: Public funds squandered

None of the cantons passed the audit with positive marks, but four of them received so-called “conditional assessments” which means they can get a positive evaluation once some corrections and improvements have been carried out, said chief auditor Ibrahim Okanović.

“Breaching legal regulations on handling the budget was registered in two cantons,” Okanović said. “Internal controls also failed in some areas involving the payment of wages, allowances and commissions. This irregularity was registered in all cantons.”

Violations of the law on public procurement are seen as one of the biggest problems in the administration.

The ten cantonal budgets last year amounted to a combined total of 1.7 billion KM (EUR 867mn), which is more than the Federation’s entire budget.

Out of those funds, the cantons spent 21.5 million KM (EUR 11mn) on public procurement.

“Major irregularities were noted due to the violations of the public procurement law, and obviously there are reasons why this was being done,” said Okanović, adding that preferential status allowed even unregistered companies to participate in public works.

Okanović complained that although the auditors informed parliament about the irregularities three months ago, MPs have yet to discuss the report.

Auditors have been issuing detailed reports for several years, but analysts say no legal action has been taken by the authorities, and similar problems keep being reported year after year.

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