Instead of improving, the BiH Ministry of Justice is proposing a new politicization of the implementation of the Law on Conflict of Interest

Although the improvement of the Law on Conflict of Interest is one of the 14 key priorities on the road to the EU, the Ministry of Justice is proposing a draft that in some provisions represents a step back from the existing one, and establishing a body that will be under political control again.

Banja Luka, December 28, 2020 – The Ministry of Justice of Bosnia and Herzegovina has sent for public consultations a draft of the new Law on Conflict of Interest of BiH, which in some parts establishes even lower standards than those we have now. Thus, BH officials are allowed to be owners or directors of private companies that receive tenders or to lead associations that receive money from the budget if the money and tenders come from lower levels of government.

Instead of the current provision of the law which says that BH officials cannot be part of the management of private companies that do business with “budget-funded institutions at any level of government”, the Ministry of Justice proposes a ban only on private companies that receive incentives from the BiH budget. BH institutions . This practically means that public officials from the state level will be able to be in the administration or be the owners of private enterprises that conclude deals at entity, cantonal and local institutions. Such a thing leaves a huge space for using political influence on institutions to realize the benefits of a private company in which the holder of public office has a financial interest.

A step back has been made in the part of the law that now prohibits BH officials from leading associations and foundations that receive money from the budget from any level of government because it is proposed that the ban apply only to associations financed from the BiH budget . Due to this situation, HDZ leader Dragan Covic found himself in trouble, because the HNS, whose president is receiving money from lower levels of government, and because of his case, the work of the Commission for Deciding on Conflict of Interest has been blocked since 2017. .

Also, if the proposal of the Ministry of Justice is adopted, not only can the blockade and political pressure on the Commission for Deciding on Conflicts of Interest continue, but its independence is not guaranteed, as it is suggested that future members may be party figures but cannot be members of the “governing body of the parties six months before the submission of the application for the public invitation for membership in the commission”. TI BiH reminds that ensuring the independence of the body implementing the Law on Conflict of Interest is one of the key international recommendations, and that it was especially emphasized through GRECO reports.

An additional problem is that the sanctions proposed for violating the law are not disincentives, because the monetary sanctions for certain violations are much lower than the possible benefits from a conflict of interest situation. Thus, for example, for violating the provisions on engagement in private companies, only a sanction of up to 2,000 KM is envisaged, while the total range is up to 10,000 KM. Some provisions are also illogical, so for example it is stated that in the case when an official who has been determined to be in a conflict of interest continues to violate the law, the commission imposes a “ban on further violations of the law “, while continuing to impose sanctions.

In some parts, the law represents progress because it stipulates that membership in the management or supervisory board of a public company is incompatible with performing a public function. However, this ban does not apply to membership in the management of public institutions, which can also lead to conflicts of interest, and the Register of Public Officials recently published by TI BIH showed that many officials run public institutions at different levels of government.

TI BIH sent comments to the Ministry of Justice on the draft stating that it does not meet international standards. Although the improvement of this law is one of the 14 key priorities set by the EU before BiH, the proposed solution represents a setback in some provisions and in relation to the existing law.

Four years ago, Transparency International in BiH initiated the adoption of the Law on Prevention of Conflicts of Interest, which is in line with international standards and assessed positively by GRECO, EU, OSCE and other international organizations, but due to numerous obstructions it was never adopted by procedures for three .

Instead of such a draft, the Ministry of Justice decided on a solution that does not meet international standards in many segments. Given that its improvement is one of the key priorities on the European path of BiH, TI BiH expects a clear message from the EU that the adoption of such solutions will not be considered fulfillment of conditions.

Otherwise, space will be opened for the BiH authorities to adopt even worse legal solutions under the guise of fulfilling their priorities, and instead of improving, they will additionally derogate from the legal and institutional framework for preventing corruption.

Press rls_13.1.2021.