19.01.2021

NO SANCTIONS FOR CONTINUOUS VIOLATION OF LAWS

At a press conference in Banja Luka, Centers for civic initiatives (CCI) presented today the findings of the Analysis of audit reports of local self-government units in Republika Srpska. 

Since its establishment, the Head service for Republika Srpska public sector audit has audited all 64 units of local self-government, and it did it at least three times. In the observed period of 10 years, 2010-2019, 239 financial audit reports of local self-government units were published, and only 3% of audited units received a “positive opinion”, which is the most critical information. 73% of municipalities/cities that received a reserved opinion have spent 1.062.927.912 BAM or  80% of total funds of all local units, whereas 24% of units that received a “negative opinion“ have spent 206.384.994 BAM. Local self-government units that received two consecutive negative opinions on their financial report are: Gacko, Istočni Stari Grad, Kostajnica, Oštra Luka, Ribnik, Trnovo and Ugljevik. On this occasion, the CCI point to the need for local parliaments, at least once a year, to adopt information on the implementation of the Action Plan to address the identified irregularities, through the implementation of recommendations.

The most common irregularities relate to financial flows, budget planning and reporting, and the non-transparent process of monitoring allocated or spent funds through transfers. In addition to violations of the Law on Budget System, a significant number of local self-government units did not act in accordance with the Law on Public Procurement. The CCI warned that due to frequent violations of legal acts and other regulations, it is necessary to adjust the existing legislation as soon as possible, and accordingly to sanction those responsible based on the findings in the audit reports. This should be especially true for those heads of institutions who do not act, year in year out,   in accordance with positive legal solutions and regulations.

Even though Head service for Republika Srpska public sector audit in its reports for the period 2010-2019 gave 1644 recommendations for addressing the observed irregularities, less than 33,5% of the analyzed 1550 recommendations were implemented in full. CCI warned that there is no information that anyone was sanctioned for failing in the recommendation implementation processes. The consequences that audited institutions, which do not implement the said recommendations in order to improve the process and remove observed irregularities, face are just negative auditor opinions, which have been repeating for years for certain municipalities/cities. 

On this occasion, the CCI point to the need to sanction local self-government units and their elected representatives. There is also an urgent need for a more effective approach to the implementation of audit recommendations, and greater accountability of local parliaments and their more active role in reviewing findings and monitoring the implementation of audit recommendations. In addition, the Analysis indicates that there is significant room to improve the level of understanding of audit reports by the Republika Srpska Prosecutor's Office, with the aim that in the coming years, more audit reports be processed by the Prosecutor's Office, if there are indications of potential corruption.

In order for the entire audit process to affect a more transparent, responsible and proper spending of public funds, it is necessary to initiate more intensive cooperation of all actors in the public audit process. Greater responsibility of local units to implement recommendations and eliminate irregularities would ultimately contribute significantly to the quality of life of citizens in local communities. For starters, this is the task of the newly elected government representatives in the local self-government units.

Project “More Efficient Public Audit for Less Corruption in Bosnia and Herzegovina” “ is implemented by the  Centers for Civic Initiatives (CCI) financed by Sweden. The Project aims to contribute to a more responsible spending of budget funds and reduction of corruption in public institutions in BiH