Public enterprises in RS spent BAM 4,3 million on media and restaurants

A research conducted by portal CAPITAL.ba and Transparency International in Bosnia and Herzegovina

BANJALUKA – Eleven public enterprises in the Republic of Srpska have spent BAM 3,2 million in three years for business entertainment and BAM 1,1 million for media advertising. The highest individual expenses have been made by Šume Srpske which have eaten, drunk and donated BAM 1,1, million, while Elektroprivreda RS has spent BAM 215.000 for the media advertising, as indicated by the research conducted by the portal CAPITAL.ba and Transparency International in Bosnia and Herzegovina.

After Šuma Srpske, the highest expenses of food and drink have been made by Elektroprivreda RS (BAM 542.000), Hidroelektrane na Drini (BAM 414.453), Elektrodistribucija Pale (BAM 314.409)and Elektrokrajina (BAM 301.669).
According to the data we obtained the lowest expenses for business entertainment have been made by Vode RS – BAM 45.570.
The highest individual cost in one year has also been made by Šume Srpske which last year paid for food and drinks the shocking BAM 407.211. A year prior to that Šume paid BAM 346.181, and in 2015 BAM 341.616.
Hydro power plants on Chivas
In what way and how much money collected from the cititzens of the Republic of Srpska is spent can be seen from the contracts Hidroelektrane na Drini (HED) concluded with a store „DAX“ regarding the procurement of alcoholic and non-alcoholic drinks and hot drinks.
In addition to five hundred bottles of blueberry, strawberry and orange juice, five thousand bottles of mineral still water, one hundred boxes of Milford chamomile tea and fifty boxes of cranberry tea, HED has also procured 42 litres of Rubin brandy, 50 bottles of Balantine, 24 bottles of Johnie Walker and 50 bottles of Chivas.
HED has purchased 264 bottles of wine, mostly of 0,75 l. This contract was concluded on 12th March 2015.
In January 2016, HED concluded a contract with another shop from Visegrad, „Kruna“, for the procurement of advertising and propaganda material with a company logo. So, for example, HED purchased 1.500 paper bags for BAM 3.300, 1.100 lighters for BAM 990, 300 Orthodox wall reminders with a daily overview of church holidays for BAM 1.080, but they also bought watches, paintings of Visegrad’s bridge, planners, appointment books, 30 silk ties and five hand-made silk women scarves.
In 2015 Autoputevi RS purchased natural mineral water and rented a water appliance for BAM 2.989, and paid BAM 4.874 for the New Year supplies.

Many public enterprises – such as RiTA Gacko, RiTA Ugljevik, Hidroelektrane na Vrbasu, Elektro Doboj, Elektro Bijeljina – did not want to provide answers to our questions.
Former Executive Director for coal production and development of RiTA Gacko and SNSD representative at the National Assembly of the Republic of Srpska Srdjan Milovic said that these data are not secret and that he does not know why we had not been provided the same.
„We need to take a closer look at the structure of these expenses. RiTA Gacko does not spend almost anything outside the company. We have a lot of expenses which are classified as business entertainment. Everything listed in the labour voucher is classified as business entertainment. Expenses related to gifts are minimal, almost nothing is purchased except for a few appointment books. Expenses that you mention are expenses within the company“, said Milovic.
According to the financial reports, RiTA Gacko spent BAM 128.554 for business entertainment in 2014, a year later it was BAM 67.142, and last year the amount was BAM 84.667.
Financial reports show that RiTA Ugljevik spent BAM 1.197.988 for business entertainment. Slightly less was consumed by Hidroelektrane na Trebisnjici – BAM 937.884, while Elektro Bijeljina stopped at “trivial” 542.223.
Monopolists have given millions for advertising purposes
Ten public enterprises spent BAM 1.076.909 for different media advertising in three years.
The largest sums for those purposes have been provided by, as we have already said, Elektroprivreda RS, Poste RS (BAM 206.512), Elektrokrajina (BAM 183.818), Sume RS (190.266). The lowest amount for media advertising in 2014, 2015 and 2016 for these purposes was provided by Autoputevi RS.
Elektroprivreda RS paid BAM 98.000 for media advertising last year which was the election year.
The data we obtained from public enterprises are not identical to the data found in the financial and audit reports. In some cases deviations are extremely high, while in some others they are completely insignificant.

Hiding the actual expenses
Elektrokrajina claims that it spent BAM 301.669 for business entertainment in three years, while in the financial reports this amount is much higher – BAM 694. 045. Hidroelektrane na Drini says that this company ate, drank and bought gifts in the amount of BAM 414.453, while the reports show the consumption of BAM 681.512.
A mistake is found with Zeljeznice RS as well – on one side it is said that the expenses were BAM 84.193, and on the other side the amount mounted up to BAM 159.485. The auditors claim that Poste RS ate double they admit –instead of BAM 47.855 the reports show the amount of BAM 86.388.
It is the same situation with the media advertising which is, in most cases, non-transparent, since the procedures on the basis of which the contracts between enterprises and advertisers are concluded, are usually competitive.
Most of these companies hold a monopoly on the market, so it is not clear why they spend several tens of thousands of marks for advertising. Many believe that public enterprises that have an absolute monopoly on the market – like Sume Srpske, Elektroprivreda RS and dependent public enterprises in electricity sector, Vode Srpske or local water suppliers – should not advertise in the media at all.
According to the data we have obtained, Elektrokrajina spent BAM 183.818 for advertising, and the auditors claim that this amount was actually BAM 207.406. The difference in data provided and observed in Elektrodistribucija Pale is minimal and it is BAM 4.000.
The biggest difference was observed in the data HED said to have spent for media advertising in the amount of BAM 54.275, while the reports show that this amount is six times higher and amounts to BAM 290.856. Poste RS also increased the amount from BAM 206.512 to 315.805.
Financial reports show that some of the biggest advertisers are RiTA Gacko with the expense of BAM 228.289, RiTA Ugljevik with BAM 356.194, Hidroelektrane na Trebisnjici with BAM 300.706, Hidroelektrane na Vrbasu with BAM 279.879, Elektro Bijeljina with BAM 211.525 and Elektro Doboj with BAM 17.399. These enterprises spent BAM 1.553.992 for media advertising in three years. These enterprises are also the enterprises which have not provided answers to our questions.
Final expenses made by the public enterprises are impossible to find out. Some enterprises do not want to submit the information, while the data provided by some enterprises are not identical to those listed in their financial reports. Sometimes the deviations are so huge, as we have shown, that the mistake is impossible. We have not received a single information from RiTA Gacko, RiTA Ugljevik, Hidroelektrana na Trebisnjici, Hidroelektrana na Vrbasu, Elektro Doboj and Elektro Bijeljina.