Audit of Federal Employment Agency

The Parliamentary Commission authorized for the audit of the Parliament of FBiH organized a hearing of the audited Federal Employment Institute in reference to its business management in 2014.

The Federal Employment Agency (FZZZ) was awarded with a reserved opinion based on 6 qualifications.

The first qualification is the inability to confirm that the FZZZ introduced an information system by the end of 2014, as planned. The Director of the FZZZ emphasized that the information system costed 4.5 million BAM and that the project had not been well-devised because there were insufficient funds to implement the project and the decision on the project was enacted by the previous management. The FZZZ Director replied that he communication structure had never been a part of the financial plan and that it was included presently, so that the information system is currently being managed.

The second qualification is signing the contract for a significantly higher amount than approved by the Parliament of FBiH, which was acknowledged as a mistake of the previous management.

The third qualification is the inability to determine the funds from the missing part of funds for cantonal services, but it was emphasized that the inability to determine the funds arises from the fact that the cantons do not follow the same procedures when it comes to health insurance contributions and unemployment insurance. So that due to the lack of harmonization of procedures in FBiH, some cantonal institutes spend more funds than others, since they pay greater contributions for the same salaries of employees. The Director stated that the maximum amounts of administrative costs are being determined.

The fourth qualification is related to the untimeliness of adopting the employment program stipulating that the FZZZ will spend 33 million BAM, from which it has only spent 13 million BAM, which the FZZZ also acknowledged as their mistake.

The fifth qualification is that the FZZZ activities were not sufficient to charge for the provided commission credits and the expenses of charging will be close to the credit expenses. The FZZZ awarded 65 million BAM of credit from 2001 to 2004 to legal and natural users for employment purposes. The FBiH Parliament received a review of all legal and natural credit users in 2008, when the problem of charging for a significant part of the credit arose, and with many users the banks have already came into possession of property and the problem has been handled for years. The return of this credit was precisely what created the deposit that relates to the following qualification.

The sixth qualification is related to not filing the reports to the FBiH Government regarding the 26.6 million BAM deposit in the Developmental Bank of FBiH incurred through the Long-Term Placement Program from 2005.

On the query referring to the credit awarded to Krivaja in amount of 6.5 million BAM, the FZZZ Director emphasized that the credit for Krivaja was placed on the basis of long-term funding program via the Developmental Bank of FBiH and on the basis of the conclusions of the FBiH Government which conditioned the survival of 800 workplaces.

The MP’s question also referred to the sectors in which the unemployed are being employed. The Director replied that the employment program was limited by banning the administrative bodies and agencies that employ via the civil service agency from participating in the active employment measures. The Institute is mostly focused on the private sector and support in employing categories of youth without working experience, youth who are unemployed for over 2 years and persons who live in households with no employed members. MP Bubica Jusuf requested for the institute to deliver data about the number of persons employed in the economy in production and the amount of budget funds spent for their employment for public sake. 


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