TI BiH published on portal Transparentno.ba a database on performance of 230 public enterprises

Collected data show that, regardless of performance, many public enterprises still increase number of its employees and salary expenditure. Average salaries of employees in public enterprises are significantly higher than the salaries in the economy sector and are not related to the business results of enterprises in any way.

Banja Luka, 14th June 2018 – Transparency International in Bosnia and Herzegovina (TI BiH) established a database on performance of public enterprises. Portal Transparentno.ba published the most significant information about 230 public enterprises providing thus a summary of their efficiency, number of employees, impact on economy and general influence.

Data shows that in most public enterprises the level of liquidity is constantly low, while five public enterprises with the biggest losses in BiH, including FBiH Railways, RS Railways, Gras Sarajevo, VIK Sarajevo and Agrokomerc, are responsible for losses worth BAM 90 million on annual basis. The overview of information provided by this database shows that those enterprises increasingly burden the budget through subsidies, activated guarantees and unpaid taxes, while the most perspective public enterprises, in spite of expectations, pay less contribution to the state budget.

Collected data show that, regardless of performance, many public enterprises still increase number of its employees and salary expenditure. Average salaries of employees in public enterprises are significantly higher than the salaries in the economy sector and are not related to the business results of enterprises in any way.

The same can be applied to the salaries of members of the managing bodies, since the collected data indicate that most directors and members of the management receives highest salaries allowed by the law. In the Republic of Srpska, directors are allowed to have a salary of BAM 3.000, and this amount is paid to the directors of Public Forestry Enterprise „Sume RS“, Postal Service Enterprise „Poste RS“, Republic of Srpska Motorways and other public enterprises, regardless of their current financial status. The same situation is found in the Federation of Bosnia and Herzegovina, where salaries of the members of the managing bodies have need limited to maximum five average salaries in this entity. Thus, the director of Sarajevo Airport receives a salary of BAM 5.056, while two executive directors are paid BAM 4.979 and BAM 4.776. Sarajevo Airport stands out as an enterprise with the highest average salary.

Database also provides information on public enterprises representation costs. In this context, Sume RS and Hidroelektrane na Trebisnjici spent the most – more than BAM 400.000 in only a year.

Transparentno.ba provides data on the way in which public enterprises spend money on public procurements as a separate unit. Data point out to the ever-present practice of dividing procurements and concluding direct contracts in which way they avoid public competitions. So for example, only RMU Banovici spends annually more than BAM 3 million on direct contracts.

TI BiH will continue to publish and update information about public enterprises on portal Transparentno.ba, and in the forthcoming period it will use a separate section to publish current information related to the public procurement, in order to indicate potential irregularities and violations of law in time.

Press rls 14.06.2018.