With the arrival of the new government in Zenica-Doboj Canton (ZDK), the practice of informing the ZDK Assembly about the measures taken by institutions to address irregularities identified by public audits has been discontinued. By abolishing parliamentary oversight of the findings and recommendations of public audits, transparency and accountability of ZDK institutions in correcting irregularities and ensuring efficient spending of public funds are being undermined.
Seven months ago, the Office for Auditing Institutions in the Federation of BiH published the financial audit reports for ZDK and the ZDK Health Insurance Institute for 2022, which revealed significant irregularities in operations and public spending. The audited institutions were required to prepare an action plan to address the identified irregularities. Under previous practice, the Government and Assembly monitored the institutions’ work on implementing the planned measures, and the Assembly was informed about this important process during its sessions. That practice has been discontinued by the new government. To date, the ZDK Government has not submitted any of the required documents into the Assembly procedure, thereby abolishing an important practice of parliamentary oversight of correcting irregularities in the work and spending of public funds by ZDK institutions.
The need and purpose of continuous parliamentary oversight is also evidenced by the findings from the audit reports of ZDK institutions. For example, in the audit report of the Health Insurance Institute, it was noted that the Management Board concluded an employment contract with the director that provided that if the director were dismissed before the end of the mandate period, he would receive all net salaries until the end of the mandate. This is not in accordance with the Labor Law or other by-laws. As in earlier periods, auditors also found that the calculation and payment of increased salaries for the director, assistant directors, and senior managers were not carried out in line with regulations.
In the ZDK financial audit report for 2022, auditors identified non-transparent allocations of funds and actions contrary to the Law on Public Procurement. For example, capital transfers at the Ministry of Education, Science, Culture, and Sports (BAM 2,000,000) and at the Cantonal Roads Directorate (BAM 3,950,000) were allocated without a public call and without clearly established allocation criteria. Furthermore, capital transfers to non-profit organizations at the Ministry of Education, Science, Culture, and Sports (BAM 570,000) were not carried out based on defined criteria. In addition, auditors found that subsidies for the development of tourist infrastructure, destinations, and offers in the total amount of BAM 1,047,792 were allocated using criteria that were not linked to improving tourist infrastructure or services, nor to defined indicators and program objectives.
With regard to public procurement, the audit determined that in the procurement of a motor vehicle by the Cantonal Roads Directorate (BAM 86,988), the tender documentation was not prepared in a way that ensured sufficient competition. Furthermore, the implementation of part of the framework agreements and contracts for road reconstruction works (BAM 3,813,099) did not even begin, as preconditions for their implementation had not been secured—negatively affecting the efficient spending of public funds.
Given the importance of efficient use of public resources and the role of ZDK Assembly representatives, who are elected by the citizens, it is essential to establish proper and effective oversight to ensure that identified irregularities and deficiencies are corrected.
We emphasize once again that these are citizens’ funds, and it is extremely important that they are spent transparently, responsibly, and efficiently, in the best interests of the public. Even more importantly, whenever deviations from these principles occur, there must be an adequate response from the competent authorities.
For all these reasons, the Centers for Civic Initiatives (CCI) call on the Government and Assembly to actively engage in the public audit process and to reinstate the previously established practice of oversight of actions taken in response to audit findings and recommendations for ZDK institutions. This includes discussing audit findings transparently during ZDK Assembly sessions and ensuring mechanisms are in place to correct identified deficiencies and irregularities and to stop non-transparent and inefficient spending of citizens’ money.