02.02.2021

GOVERNMENT INSTITUTIONS AND PUBLIC COMPANIES DOWNPLAY IMPORTANCE OF THE COMMITTEE AND AUDIT OFFICE

The FBiH parliamentary committee responsible for audit has begun the hearing of the audited entities on 29 January 2021. The Committee has already at the first hearing encountered obstacles in its work. Some representatives of the audited entities did not appear for the hearing. It is concerning that they are representatives of the Government of the Federation of BiH, i.e., Finance Ministry, whose hearing was scheduled for that day and whose report on budget execution for 2019 was on the agenda.

Instead of serving as a positive example for other institutions confirming with their presence by using the opportunity to clarify the findings and recommendations and in discussion with members of the Committee try to find a rational solution to the recommendations, they simply failed to appear for the hearing. In this way they devalued the work of both the Committee and Audit Office. Representatives of other institutions, two mines, Electric Company BiH and Institute for Health Insurance and Reinsurance of FBiH, responded to the call and appeared before the Committee. 

This poor practice on the part of the audited entities continues the next day, on 1 February, when representatives of the Croatian Telecommunications Company Mostar failed to appear to discuss the 2019 audit report. Representatives of other five entities appeared for the hearing (three mines, FBIH Civil Protection Administration, and Roads Mostar.

Failure to appear for the hearing is unacceptable as the hearing is an opportunity for the audited institutions to explain findings and shortcomings in the audit reports, to demonstrate their responsibility and seriousness by assuming the obligation to implement the recommendations leading to elimination of the shortcomings.

We remind of the importance of the role of the parliamentary committee responsible for audit, which reviews the reports, findings and recommendations of the Audit Office regarding the legality and effectiveness of spending the public funds. The Commission organizes hearings for the representatives of institutions to which the Audit Office has given negative or qualified opinion, and proposes conclusions, recommendations and guidelines for Parliament FBiH, that needs to be taken in order for more efficiently and responsible spending of public funds.

Organisation of hearings for the institutions that have received adverse or qualified opinion is one possibility and one of the Committee's steps that may lead to improvements in implementation of the audit recommendations and better performance of the audited entities. Considering the importance of both the Committee and the Audit Office, we expect that failing to appear before the committee will be sanctioned and that it will become an exception in the coming period so that the committee can reach and realise its full potential. 

The remaining two hearings are scheduled for 2 and 3 February 2021. The institutions called to appear before the committee are: (Tuesday) BH Telecom (2019.), International Airport Sarajevo (2018), BiH Lottery (2018), PC Motorways of the FBIH (2018, Electric Company HZHB (2017), and for the last day of hearing (Wednesday): Fiscal Information Agency of FBIH, Service for Joint Affairs of the Institutions and Bodies of FBiH, Public Broadcasting Service RTV FBiH (2018), Sarajevoroads (2018), PC Railways of FBiH (2017).

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