Proposed Amendments to the Law on Conflict of Interest of Republic of Srpska Allow Abuse in Delivery and Distribution of Humanitarian Aid in Flood-Hit Areas

Banja Luka, 11^th June 2014 – Transparency International Bosnia and Herzegovina (TI BiH) considers unacceptable proposed Amendments to the Law on Prevention of Conflict of Interest in Governmental institutions of the Republic of Srpska, which along with the set of Laws on Establishing of Solidarity Fund have been forwarded in accordance with the emergency procedure to the National Assembly of the RS.

Proposed Amendments to the Law on Conflict of Interest of Republic of Srpska Allow Abuse in Delivery and Distribution of Humanitarian Aid in Flood

The proposed Amendment to the Law refers to the introduction of the exception which bans public officials to be presidents or executive directors of associations or foundations that are financed from the budget in the amount exceeding 100.000 KM, wherein it has been proposed the exception that refers to the establishment of foundations and funds used for the repair of damage caused by natural disasters and other catastrophes. Although, the explanation states that the aim of this Amendment is to remove all obstacles during the establishment of the Solidarity Fund, it is necessary to emphasize that the Solidarity Fund whose activities are regulated by the Government is not the same as foundation that can be established by other legal entities or individuals and this Amendment to the Law will allow public officials to establish foundations that can be financed from the budget, which will open new opportunities for abuse.

TI BiH warns that in the aftermath of the disaster that struck BiH, it is necessary to eliminate opportunities for abuse that may occur during allocation of funds in the flood-stricken areas, and adoption of these Amendments to the Law would not only deepen the suspicion by the public, but would also enable public officials to use natural disaster for establishing of their own foundations and thus divert funds from the budget.

Therefore, TI BiH urges legislators to delimit by law the Solidarity Fund from other associations and foundations and provide protection against abuses that may occur during the distribution of funds for repair of damage.