Draft on the Law on Financing of Political Parties in BiH Encourages Corruption

Banja Luka, 15^th November 2012.- TI BiH considers that particularly problematic changes are related to the Article 6 which increases donations from legal bodies within a year, from the current 15 average wages (about 12,000) to 50,000, and the limit for individual persons is being increased from 8 salaries (about 6,400) to 10,000.

For the first time, a provision has been introduced which prescribes that a party member may remit an amount up to 15,000 KM (including membership fee) within a year, which provides opportunity for manipulation due to the fact that parties may have increased the number of fictively signed members to ensure large extent of allowable donations. Department of the OSCE Mission ODIHR in its analysis of the current Law on Financing Political Parties in BiH has clearly warned that the ‘’ risk of circumvention of restriction is presented by using mediators to carry out the payments’’.

Therefore, TI BiH appeals to delegates of the House of People of Parliamentary Assembly of BiH to reject the change in the Article 6 and prevent increasing limits on donations of the legal and individual persons, particularly introduction of a new member’s category. Instead of increasing the limits on donations and grants TI BiH invites delegates to incorporate into the legal provisions solutions for transparency and effective supervision of spending these funds.

Also, in accordance with recommendation of the Group of States against Corruption (GRECO) of the Council of Europe, in order to conduct effective oversight, TI BiH recommends the incorporation of single account for receiving donations and other sources of income, as well as payments of the costs of political parties and election candidates, into proposed provision.

TI BiH reiterates that under the Law on Financing of Political Parties in BiH tougher  sanctions for its violation must have been prescribed and defined, and strengthening the role and capacity of the Central Election Commission in the  process of controlling the financial operations of political parties.

Appealing to the delegates of the House of Peoples, TI BIH invites them to prevent destruction of legal framework and supervision of financing of political parties.