Businessmen distributed funds to themselves after the flood

Association of Businessmen “15. maj ”from Doboj, which received 6 million KM from the Solidarity Fund for further distribution to businessmen affected by the floods in Doboj, distributed these funds without clear criteria, and the founders of this Association allocated funds to themselves, in the amount of 488,000 KM

Banja Luka, 18. December 2015 – The RS Solidarity Fund is in July 2015. approved 6 million KM to help flooded businesses in the Doboj area, and the list of businessmen who suffered damage and individual amounts paid to them, determined the Doboj Association of Businessmen “15. May “. It is also interesting that the Association of Businessmen “May 15” was founded in June 2014. year, only after the flood, and it is not an association entrusted with the exercise of public authority by a special law, as regulated by the Law on Associations and Foundations of the RS. This raises the question of how this association could decide on the ways of allocating public funds, without clearly defined criteria on the basis of which lists of companies are made and estimates the amount of funds that will be allocated to individual businesses.

Businessmen from Doboj also pointed out the non-transparency of the award procedure, and addressed the Solidarity Fund and the City of Doboj and received the answer that neither of them was competent in the procedure of determining the criteria and estimates of distribution of funds to businessmen.

TI BiH is in possession of the recommendation of the Institution of the Human Rights Ombudsman of BiH where illogicalities have been identified and where it is clearly stated that public funds from the Solidarity Fund were paid to businesses illegally, and that aid funds were paid based on a proposal made by a non-state an entity not subject to control by the Fund.

The Law on the Solidarity Fund regulates that the work of the Fund is public, and that the RS Government publishes a monthly report on the total allocated funds from the Fund’s account, but it is not possible to find information on the criteria on which the funds were distributed. In this case, TI BiH asked the Fund for a copy of the Conclusion approving the funds of 6 million KM and allocating the Association of Businessmen “15.maj” for further distribution, as well as the distribution criteria, but to date it has not been able to obtain the requested information.

Based on all the above, it is clear that the public money collected through the Solidarity Fund was distributed in a non-transparent and illegal manner to the citizens’ association established immediately after the floods, which was not entrusted with exercising public powers. paid the money to businessmen in Doboj.

TI BiH also checked the businessmen to whom the funds were allocated and came to the conclusion that most of the founders of the Association were actually users of these funds, ie that the Association distributed funds in individual amounts to members of its supervisory and management board, as well as founders and members. up to 88,000 KM. As many as 10 of the 12 founders of the Association appear on the list of beneficiaries, which in practice represents a clear conflict of interest. The total amount of funds that the founders of this association practically allocated to themselves is 488,000 KM, which is a large percentage, given the fact that the funds are distributed to over 600 businesses.

TI BiH certainly supports all initiatives related to assistance to citizens and businesses affected by last year’s floods, but insists on creating and implementing clear allocation criteria and transparency at every stage, from decision-making, ways of allocating funds to spending funds. The distribution of funds on arbitrary lists and based on conflicts of interest, only contributes to public suspicion of the regularity and fairness of the aid process, as shown by numerous applications received by TI BiH, which include this case.

The deputies of the National Assembly of the RS will also have before them a new law on special contributions for solidarity, with a new way of collecting funds from the citizens of the RS, which should be collected in the Solidarity Fund. Given that the Solidarity Fund has so far distributed huge public funds non-transparently, the question arises as to how the money collected in this way will be spent in the future, and whether citizens can expect it to be used purposefully, in solidarity and those who really need it.

Press rls – 18 12 2015 doc