19.05.2021

USE SANCTIONS FOR IRRESPONSIBLE INSTITUTIONS AND MANAGERS

  "Public hearings and detailed parliamentary oversight would significantly improve the spending of public funds in FBiH" - was the conclusion today in Sarajevo at a press conference of the Centres for Civic Initiatives (CCI), which presented the Analysis of the public audit process in the Federation of Bosnia and Herzegovina for period 2016-2019.

On that occasion, the obligation of the audited institutions to finally start the implementation of the audit recommendations was emphasized, as well as the obligation of the Parliamentary Audit Committee, which should certainly continue related public hearings. Through the Analysis, the CCI also warns that the implementation of recommendations should be at a higher level and that a sanctions mechanism should be used to punish individuals who do not act responsibly towards the public audit process and violate laws and regulations in this field. Namely, in the period from 2016 to 2019, the Audit Office for Institutions in Federation of BiH published 325 reports on financial audit of institutions in FBiH. For the financial reports of the subjects, which were the subject of the audit, 136 positive opinions were given, i.e. almost identical number of  reserved opinions  (135), while only 48 opinions (15%) were qualified. Also, 8 abstentions were given.

In addition, the fact that auditors, through financial audit reports, gave a total of 5,838 recommendations to audited entities is worrying. The CCI warns that the institutions should increase their financial discipline by implementing the recommendations, which would ultimately reduce the number of negative audit reports and stop further violations of the law and enable more transparent spending of public funds.

The fact that the institutions are increasingly respecting the legal obligation to submit a plan to eliminate deficiencies is gratifying. This document is extremely important because it contains an action plan that needs to be implemented in order to eliminate the shortcomings identified during the audit, i.e. to implement the audit recommendations. The attitude of the audited institutions to submit action plans according to the legal obligation shows the attitude of the institutions towards the audit, that is,  their desire to correct the observed irregularities ensures more responsible spending of public funds.

It is important to point out that the success of the audit does not depend only on the work of the Audit Office, but is a key obligation of other institutions, such as prosecutors' offices, parliament, political actors and ultimately the courts. Also, in the audit process, there is a great responsibility on the Parliamentary Audit Committee, which should organize public hearings of the audited institutions. In this regard, the CCI emphasizes that it is necessary that all members of the commission, or at least the majority, be involved, namely, to participate in public hearings of representatives of institutions whose operations did not deserve a qualified audit opinion. It is encouraging that after a two-year blockade, the Committee organized 12 sessions and 20 hearings of audited institutions in 2021.

Also, in addition to the FBiH, there is a great responsibility of local and cantonal parliaments to control the spending of public funds, which should consider in detail the audit reports and action plans to eliminate the shortcomings of the audited institutions.

On this occasion, the Centres for Civic Initiatives call for the improvement of the public audit process at all levels in Federation of BiH. The step towards more successful control over the spending of public funds will certainly be the continuation of public hearings, the use of sanctions, but also the final activities of parliaments, prosecutor's offices, political parties and courts that will be in the interest of all citizens.

Project “More Efficient 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 a more responsible spending of budget funds and reduction of corruption in public institutions in BiH.